Court Opinion

ID: 9697674
Source: CourtListenerOpinion
Date Created: 2023-08-25 19:25:46.0503+00
Date Added: 2024-06-11T18:20:34.510665
License: Public Domain

Justice EAKIN.

CONCURRING AND DISSENTING OPINION

I agree that an express clause is an appropriate prerequisite to assignablility of a noncompetition agreement. However, I believe the original party’s right to enforce the covenant here remains, and hence dissent from that portion of the analysis of my colleagues.
Part of the sale price was Hoaster’s entitlement to commissions and fees on existing accounts for three years after sale. That is, Hoaster took less purchase money up front and expected to receive the rest of the sale price over the next three years. His decision to accept this arrangement was certainly with the consideration that he had a covenant with Hess preventing the latter from competing and jeopardizing those expected fees. In such a case, how can we say he cannot protect that expectation by enforcing that for which he bargained for with Hess?1 His expectations, obviously factored into the terms of sale, were jeopardized by Hess’ efforts to remove existing accounts to other companies. I cannot agree he had no protectable business interest simply because his interests were financial rather than in the nature of information.
I join the majority’s holding that an assignability provision is necessary for the covenant to be passed from seller to buyer. However, if it is not assignable, it is not necessarily extinguished by the sale; where the seller retains a significant tangible interest in the matters affected by the covenant, I *171would find the seller retains the right to enforce the covenant, if reasonable.
Mr. Justice CASTILLE joined.

. My colleagues justify restricting the assignability of the covenant in part because of the personal nature of the covenant in the first place — it is between the contracting parties. This coin has two sides, however. If the covenant is truly personal to Hoaster, his ability to enforce it survives the sale.