Boch restrained in door knob litigation

BOCH RESTRAINED IN KNOB LITIGATION

By an opinion filed in the Court of Chancery, Vice-Chancellor Walker has made permanent a preliminary injunction granted the Artistic Porcelain Company against Noah Boch, proprietor of the American Porcelain Works, restraining him from supplying other concerns with goods under an agreement between the complainant and defendant.

In the bill filed it was alleged that an agreement had been entered into by the Artistic Porcelain Company and the American Porcelain Company whereby the latter sold the right, title and interest of the American Porcelain Company to the Artistic Porcelain Company, and was not to manufacture anything of the nature manufactured by the American Porcelain plant until January 1, 1910. There was a stipulation in the agreement, however, which gave Boch the right to manufacture knobs for the Artistic Porcelain Company only, but was not to sell them to other concerns or individuals.

Boch's defense was that the agreement was illegal because it was in restraint of trade, and that the complainant violated the contract.

In his opinion Vice Chancellor Walker says that the covenant in question is not one of illegal restraint of trade, but is valid and enforceable. The decision also places the cost of the suit on the defendant.