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Daniel v. Trade Winds Travel, Inc.
Citations: 532 So. 2d 653; 1988 WL 85831Docket: Civ. 6625
Court: Court of Civil Appeals of Alabama; August 19, 1988; Alabama; State Appellate Court
Trade Winds Travel, Inc. (Trade Winds) initiated a complaint against Jan Pankey Daniel and Great Escapes Travel, Inc. for breaching a covenant not to compete, tortious inducement of the breach, and tortious interference with Trade Winds' business. The trial court found the covenant enforceable and awarded Trade Winds $4,000 in punitive damages and $1,000 in attorney fees. On appeal, the court evaluated the reasonableness of the covenant under Ala. Code (1975) § 8-1-1, which generally prohibits restrictive covenants unless certain conditions are met: the employer's protectable interest, a reasonable relationship of the restriction to that interest, the reasonableness of the restriction in time and place, and no undue hardship on the employee. Key findings included that Daniel's employment agreement prohibited her from engaging in the travel agency business in Madison County for two years or six months after justifiable termination. After leaving Trade Winds, Daniel established Great Escapes nearby. The trial court determined Trade Winds had a protectable interest due to the competitive nature of the travel agency business and the importance of customer lists. The court ruled the restriction was reasonable in both scope and duration, concluding that the covenant was valid. The appellate court affirmed the trial court's ruling, dismissing additional issues raised by Daniel due to lack of supporting authority.