Marine Contractors Co., Inc. v. Thomas F. Hurley, 365 Mass. 280

Summary

Appellee was in the business of performing specialized types of marine repair work in certain specified areas. Appellant qualified as a participant of appellee's employment trust agreement, which provided that benefits would be distributed every five years. Upon employment termination, appellee offered appellant immediate payment of his vested share of the trust in return for a promise not to compete with appellee for five years and within a certain geographical area. Appellant agreed and received his vested share in the trust, but contrary to the agreement, he started his own business in direct competition with appellee. Appellant argued that the injunction should be vacated because there was lack of consideration and the agreement constituted unreasonable restraint of trade. On appeal, the court affirmed the injunction. The requirement of consideration was satisfied if there was either a benefit to the promisor or a detriment to the promisee. Agreements not to compete would be ...