Court: |
Wisconsin Supreme Court |
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Facts: |
Torborg came back frm WWII and worked for Fullerton. He was an important
manager guy in their lumber yard. They offered him a pension, and this
came with an agreement that included a non-compete clause. He signed,
then later quit to open his own lumber business. |
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Posture: |
Appeal by plaintiff after the initial complaint was dismissed at trial. |
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Issue: |
Are the terms of the non-compete clause unreasonable? |
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Holding: |
Not wholly. Reversed and remanded for determination about reasonable length. |
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Rule: |
Previously, Wisconsin had an all-or-nothing rule: terms of contracts
were indivisible. Now they adopt a blue-pencil test, where if
one term can be severed from the others and the remainder of the
contract can stand, that will not render the whole thing void. |
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Reasoning: |
10 years is too long, but defense counsel hinted that 5 would be reasonable. |
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Dicta: |
Dissent: divisibility of terms should be found in the contract itself,
not read in. How can the court go about determining what duration
is reasonable, if the parties made an agreement? |