The plaintiffs sought an interlocutory injunction to prevent the defendants from breaching non-competition, non-solicitation, and trade name use covenants following the sale of a business.
The court applied the modified injunction test for restrictive covenants, finding a strong prima facie case of breach by the defendants, directly and indirectly through an employee and his company.
The court drew an adverse inference from the defendants' failure to provide an affidavit from the key employee.
Irreparable harm was presumed and also found on evidence of lost sales and market confusion.
The balance of convenience favored the plaintiffs, as the defendants' alleged breaches were deliberate.
The injunction was granted, along with an order for production of the defendants' general ledger and customer lists.