The Price of a Non-Compete
A Seattle restaurateur is legally banned from the restaurant business after selling his previous establishment.
The story, cleaned up
A cleaned-up reading of the newspaper page: spelling and layout repaired, one story lifted off a crowded page. It follows the original closely but it is not a transcription. The original page is below; read it if a detail matters.
Albert N. Wales, until recently a partner of the Grand Cafe, was perpetually enjoined by Judge Humes yesterday from conducting or owning an interest in any restaurant in Seattle. The injunction was made on petition of D. H. LeGate, proprietor of the Columbia restaurant at 213 Columbia street. LeGate claims that on May 1, 1893, he purchased the restaurant at 213 Columbia street from Wales, paying him $900 for the 'utensils, furniture, appurtenances and good will' of the business, and he also claimed that in the bill of sale, Wales agreed to keep out of the restaurant business in the future and in no way run an opposition concern. LeGate alleged that Wales immediately thereafter violated the terms of the agreement by becoming a part owner of the Grand Cafe. Judge Humes decided that the terms of the bill of sale had been violated and held that henceforth Wales cannot legally have an interest in a restaurant, though he may, if he so desires, accept employment as a clerk in concerns owned by other persons.
“Wales cannot legally have an interest in a restaurant, though he may, if he so desires, accept employment as a clerk.”
This case illustrates that the legal enforcement of 'non-compete' clauses in service industry employment contracts has deep roots in Seattle's business history. While modern Washington law has moved to severely restrict non-competes for lower-wage workers, the struggle to define the boundaries of 'good will' and the rights of a seller to re-enter their trade remains a relevant civic tension.
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