Carl J. FLATLEY, D.D.S., and Carl J. Flatley, D.D.S., P.A., a Florida Professional Association, Appellants/Cross-Appellees,
v.
Garland L.S. FORBES, D.M.D., and Garland L.S. Forbes, D.M.D., P.A., a Florida Professional Association, Appellees/Cross-Appellants.
District Court of Appeal of Florida, Second District.
*484 Peter P. Charnetsky, of Zimmerman, Moon & Charnetsky, Palm Harbor, for appellants/cross-appellees.
J. Paul Raymond, of McMullen, Everett, Logan, Marquardt & Cline, P.A., Clearwater, for appellees/cross-appellants.
FRANK, Judge.
Carl J. Flatley, D.D.S., and his professional association appeal from the trial court's summary judgment declaring a covenant not to compete void and unenforceable.
Dr. Flatley established and for several years operated a dental practice in Pasco County, Florida, and he simultaneously maintained a practice in Pinellas County, Florida. On May 1, 1983, he and his professional association executed a contract with Garland L.S. Forbes, D.M.D., and his professional association for the sale and purchase of Flatley's Pasco County practice, its properties and assets. The agreement called for an initial cash payment, with the balance of the $275,000.00 purchase price payable in monthly installments. The contract contained a covenant expressly barring Forbes from practicing endodontic dentistry in Pinellas County for a period of five years. The sale and purchase were completed in accordance with the contract.
The dispute at hand arose in 1985 when Forbes communicated to Flatley an intent to share office space on a one day per week basis with an oral surgeon in Pinellas County. Forbes' ultimate goal was to maintain an independent office in Pinellas County. Upon learning of Forbes' plan to practice in Pinellas County, Flatley filed a complaint seeking a declaratory judgment enforcing the anti-competition covenant. Forbes answered the complaint contending that the covenant was void and unenforceable by reason of section 542.33, Florida Statutes (1983). Forbes also sought the payment of attorney's fees he incurred in defending the action based upon the lack of a justiciable issue. Each party filed a motion for summary judgment. The trial court granted Forbes' motion and entered a final summary judgment finding the covenant void and unenforceable. Flatley appealed from the final judgment and Forbes cross appealed on the ground that he should have been awarded attorney's fees.
We find Forbes' cross appeal meritless. The discussion and analysis which follow disclose there is not "a complete absence of a justiciable issue... ." § 57.105, Fla. Stat. (1985). See Ferm v. Saba,
Flatley contends that the common law will sustain enforcement of the covenant if it is reasonable. We disagree. At common law, contracts which hindered one's right to follow one's calling and support one's self and family were considered invalid as against public policy. Flammer v. Patton,
The Legislature embodied in section 542.33 the common law's abhorrence of contracts restraining competition: "[e]very contract by which anyone is restrained from exercising a lawful profession, trade or business of any kind, otherwise than is provided by subsections (2) and (3) hereof, is to that extent void." § 542.33(1), Fla. Stat. (1983). The exception pertinent to this proceeding set forth in subsection (2)(a), however, is confined to restraining the commercial activities of the seller which in turn could impose economic detriment upon the buyer.[1] The exception does not encompass an agreement in which the buyer of a business agrees not to compete with the seller of the same business.
Flatley, with reference to Pensacola Associates and Herndon v. Eli Witt Co.,
Accordingly, the trial court was eminently correct in granting Forbes' motion for summary judgment declaring the covenant not to compete void and unenforceable.
GRIMES, A.C.J., and CAMPBELL, J., concur.
NOTES
Notes
[1] The relevant statutory exception provides as follows:
(2)(a) One who sells the good will of a business, or any shareholder or a corporation selling or otherwise disposing of all of his shares in said corporation, may agree with the buyer, and one who is employed as an agent or employee may agree with his employer, to refrain from carrying on or engaging in a similar business and from soliciting old customers of such employer within a reasonably limited time and area, so long as the buyer or any person deriving title to the goodwill from him, and so long as such employer continues to carry on a like business therein. Said agreements may, in the discretion of a court of competent jurisdiction, be enforced by injunction. § 542.33(2)(a), Fla. Stat. (1983).
