Opinion ID: 2446239
Heading Depth: 3
Heading Rank: 2

Heading: Sale of Similar Products

Text: [¶ 29] Alsham also contends that the court erred in concluding that Coastal's sale of similar products in the hardware store does not violate the non-competition agreement because the agreement clearly provides that Coastal is not to compete directly or indirectly in any manner with Alsham. In their recitals, the parties stated: After the Closing Date, Coastal and the Bushes will no longer engage in the supermarket or clothing store business  (emphasis added). The parties went on to agree that: 1. Coastal and the Bushes agree that for a period often (10) years from the date of this Agreement, and within a twenty (20) mile radius of 11 Addison Road, Columbia, Washington County, Maine, neither Coastal nor the Bushes will: i. compete with Alsham or any entity under its common control and/or the Business, directly, or indirectly, through any person or entity in any capacity including, without limitation, agent, trustee, consultant, shareholder, director, officer, manager, member, employee, or partner; ii. be employed by or perform any services as an employee, consultant, or otherwise, for any person, firm, partnership, limited liability company, joint venture, corporation, or other entity that competes with the Business or Alsham or any entity under its common control; or iii. invest in, lend money to, guaranty loans for, make gifts to, advise, or assist any other person or entity that competes with the Business or Alsham or any entity under its common control. Alsham contends that this language unambiguously prohibits Coastal from competing with Alsham in any manner, but the trial court disagreed and admitted evidence of the parties' intent and knowledge upon entering into the agreement. [¶ 30] As noted, whether a contract term is ambiguous is a question of law that we review de novo. Richardson, 2009 ME 109, ¶ 9, 983 A.2d at 403; Villas by the Sea Owners Ass'n, 2000 ME 48, ¶ 9, 748 A.2d at 461. Contrary to Alsham's contention, the language is ambiguous. See Madore, 2007 ME 92, ¶ 8, 926 A.2d at 1183-84. The language in paragraph one could be reasonably interpreted to prohibit Coastal from engaging in a competing business or reasonably interpreted to prohibit Coastal from selling competing products. The court did not err in considering the extrinsic evidence of the parties' intent and knowledge when entering into the agreement because the language in question was ambiguous. Id. [¶ 31] Testimony at trial established that Alsham was aware that the hardware store sold similar products prior to its purchase of the supermarket and understood that Coastal would continue to operate and attempt to sell its remaining businesses. The circumstances surrounding the sale of the businesses and the testimony at trial support the court's determination that the parties did not intend the agreement to limit Coastal's sale of similar products, see Seashore Performing Arts Ctr., Inc. v. Town of Old Orchard Beach, 676 A.2d 482, 484 (Me.1996), and the court did not clearly err in so determining, see Spottiswoode, 1999 ME 79, ¶ 16, 730 A.2d at 172. Alsham's remaining arguments regarding the sale of similar products are not persuasive, and we do not address them.