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| Case Name | Alliant Insurance Services, Inc. v. Gaddy | |
|---|---|---|
| Date | 02/07/2008 | |
| Note | A noncompetitive covenant regarding the sale of a company may only address the geographic location in which the company sold does business. However, the area where a business is 'carried on' is not limited to the locations of its buildings, plants and warehouses, nor the area in which it actually made sales. Here, a company that primarily does business in 4 counties is able to show that they are a California service and may enforce a covenant not to compete in any and all 58 counties in California. | |
| Citation | C055192 | |
| WCC Citation | WCC 33142008 CA |
Respondent Alliant Insurance Services, Inc. (Alliant) is an insurance brokerage business that obtains insurance for construction companies. In 2004, Alliant purchased a competing insurance brokerage, Gaddy Ward & Company Insurance Brokers (GWC), for $4. 1 million. He argues it should be limited to only four counties where, according to Gaddy, Alliant has construction clients. Alliant vice president Gregory Zimmer attested in a declaration that defendant worked for Alliant from 2004 until defendant's termination in October 2006. Thus, the supplemental declaration indicated there were two components to GWC's business -- (1) selling insurance to construction clients, and (2) procuring insurance from insurance companies.
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