George King d/b/a Acme Industrial Laundry, appellee herein, employed appellant,
The question of contractual restraint provisions has been passed upon by this court several times, and in McLeod v. Meyer,
“* * * According to the proof there is a clear-cut distinction between a family laundry and a linen supply service. A family laundry is engaged principally in laundering clothing and household linen for residential customers. A linen service company deals principally with commercial customers. Such a company owns commercial uniforms, restaurant linen, barber supplies, and the like, which the company rents to its patrons. Its routemen make calls at frequent intervals for the purpose of collecting soiled linen and replacing it with an equal supply of clean linen.
“When Independent Linen and Bew [appellant] executed their agreement, the company was engaged in the linen service business, but never in its history had it been engaged in the laundry business. Hence its attempt to restrain Bew from entering the latter field went decidedly farther than the company’s protection required. * * *”
Likewise in American Excelsior Laundry Company v. Derrisseaux,
Appellant contends that there is no mutuality (of consideration), and the contract is thus void. He argues that, under the agreement, appellee did not have to employ Bailey for any particular length of time; appellee did not have to pay any specific amount of money; and could fire Bailey without cause. We do not agree with appellant’s contention. Numerous cases support the enforceability of protection covenants where the consideration is based simply upon employment. National Linen Service Corp. v. Clower,
Of course, if an employer obtained an agreement of this nature from an employee, and then, Avithout reasonable cause, fired him, the agreement Avould not be binding. In other words, an employer cannot use this type of contract as a subterfuge to rid himself of a possible future competitor. As avo have pointed out, each case must stand upon its own facts. Here, there is no evidence that this Avas not a bona fide agreement. There is no evidence of trickery or chicanery. Bailey Avas employed for nearly íavo years before his services Avere terminated, and Avithout going into detail, Ave simply say that there were valid reasons for ending his employment. ,
The breach of a covenant not to compete is, of course, of a continuing nature, and an action for damages is hardly adequate, mainly because of the extreme difficulty in determining the amount of damage caused by loss of business. It appears that the only realistic relief for a breach of this type of contract is by injunction, and the court properly granted that remedy in the instant case.
Summarizing, we hold that the contract in issue, providing that' appellant could not engage in the linen supply business for the period of one year within a radius of twenty-five miles of the city of Fort Smith, was a reasonable agreement, and accordingly enforceable.
Affirmed.
Notes
These, incidentally, are laundry cases.
