New York Court of Appeals
Mohawk Maintenance Co., Inc. v. Irving G. Kessler
February 19, 198152 N.Y.2d 276
Summary
The New York Court of Appeals affirmed the lower courts' injunction prohibiting the defendants from soliciting customers of Mohawk Maintenance Co. that were served at the time of the 1972 sale, holding that the implied covenant not to solicit former customers arising from the transfer of goodwill imposes a permanent duty. The Court rejected the argument that such a duty must be limited by a reasonableness test applied to express non‑competition covenants. Justice Jones dissented, arguing the duty should end after the five‑year express restriction expired.