OPINION OF THE COURT
The defendant was licensed to operate a Carvel ice cream store in Franklin Square, Nassau County, New York, and the term of the license agreement ran to October 31, 1984. Although the plaintiff Carvel Corporation (hereinafter Carvel) declined to renew the agreement, it is undisputed that the defendant continued to operate a retail ice cream store after that date at the same location as the former Carvel store.
Carvel commenced an action seeking, among other things, a permanent injunction against the defendant pursuant to the terms of paragraph 31 of the license agreement, which provided: "To prevent dilution of the exclusivity of the valuable Carvel know-how and Carvel trade secrets to be acquired by Licensee hereunder, it is agreed as part of the consideration to, and inducement for, Licensor entering into this agreement that in the event Licensee sells the Carvel Store or abandons the Carvel Store provided for in this License, or in the event
Carvel thereafter moved for partial summary judgment on its cause of action seeking a permanent injunction, or, in the alternative, for a preliminary injunction. In opposition, the defendant argued that the restrictive covenant contained in the license agreement, by its terms, only applied in the event the license was "terminated” and, in this case, the covenant was inapplicable because the license had not "terminated” but, rather, had "expired”. The defendant further argued that the agreement, and, in particular, the restrictive covenant, were unconscionable and unreasonable.
Special Term granted that branch of the motion which was for partial summary judgment, holding that an "expiration” of the agreement was but a form of "termination” and, therefore, that the covenant applied. The court also found no issue of fact precluding a determination, as a matter of law, that the restriction was reasonable and not unconscionable. We agree.
The record fails to reveal the existence of a triable issue with respect to the interpretation of the language of the license agreement which would preclude the entry of judgment as a matter of law on the plaintiff’s cause of action for a permanent injunction. It is, of course, fundamental that the responsibility to interpret written instruments is one vested in the court, which must ascertain the intention of the parties from the language which they have employed (Mallad Constr. Corp. v County Fed. Sav. & Loan Assn.,
In this case, the parties rely solely upon the written instrument and do not refer to parol evidence for the purpose of
In reviewing the interpretation given by Special Term, "the intent of the parties is to be given paramount consideration” (Tantleff v Truscelli, supra, at p 244; see also, Greenwich Vil. Assoc. v Salle,
Reviewing the license agreement, in its entirety, in light of the foregoing principles, we cannot say that Special Term erred in its conclusion that the covenant not to compete, as set forth in the agreement, was intended by the parties to apply in the event that the agreement was terminated by reason of the expiration of its term as well as by any other form of termination prior to expiration.
It is true, as the defendant notes, that the words "termination” and "expiration”, or forms thereof, appear in several contexts throughout the agreement. For example, Carvel was entitled to terminate its licensee’s rights under the contract in the event of a breach by the latter. Also, the contract expressly provided that in the event of "expiration, cancellation or termination”, Carvel was entitled to immediate possession of its property and to prompt payment by the licensee of all open accounts. In these contexts, it might be argued that the use of the word "termination” was intended to describe an end of the agreement’s existence occurring prior to the time fixed by the parties at its inception. However, another clause of the agreement provided that the licensee was to discontinue use of the Carvel name, trademarks and know-how upon "expiration or any earlier termination” of the agreement, and it can be inferred from these words that the parties understood "expiration” to be but a form of "termination”. In the covenant not to compete, the stated purpose of which was to
We next consider the defendant’s claim that the covenant not to compete is unconscionable and, hence, unenforceable. The doctrine of unconscionability "requires some showing of 'an absence of meaningful choice on the part of one of the parties together with contract terms which are unreasonably favorable to the other party’ ” (Matter of State of New York v Avco Fin. Serv.,
In this case, the defendant’s affidavit in opposition to the motion for summary judgment alleges that the covenant not to compete is both procedurally and substantively unconscionable, because it was not subject to negotiation when the contract was made, and because it affords Carvel complete protection from competition after the agreement is ended while, at the same time, another provision of the contract permitted Carvel to license another store as close as one mile from the licensee’s store and in direct competition with the licensee. These allegations are insufficient to warrant an evidentiary hearing. The defendant’s claim that there was a lack of meaningful choice in the contract formation process is strictly conclusory, and the defendant fails to show that the covenant not to compete was unreasonable with respect to either geographical scope or temporal duration so as to give rise to the possibility of unconscionability (cf. State of New York v Wolowitz, supra, at pp 68-69). Thus, Special Term properly granted that branch of the plaintiff’s motion which was for partial summary judgment and the judgment granting a permanent injunction was properly entered.
Lazer, J. P., Bracken, Brown and Lawrence, JJ., concur.
Appeal from an order of the Supreme Court, Westchester County, dated July 29, 1985, dismissed (see, Matter of Aho,
Judgment of the same court, entered August 8, 1985, affirmed.
The plaintiff is awarded one bill of costs.
