RESTRAINT OF COMPETITION SOUGHT

Evening Star, Issue 21823, 12 September 1934, Page 2

RESTRAINT OF COMPETITION SOUGHT

A SOAP SALE CASE [Per United Prem Association.] 4 WELLINGTON, September 11. The relations between William Escott and William Thomas, purchaser and seller of “ More Suds Sales Service,” have become very complicated and have been subject to three lots of litigation since the parties first came together as the result of an advertisement in December,; 1933. The third case was commenced before Mr Justice Reed yesterday morning. Escott is suing for an injunction restraining Thomas from competition in business and' for £IOO damages for injury alleged to have been done to Escott by “ intensive competition ” since the settlement of a Supreme Court claim and counter-claim in May last. The case promises to become the leading authority upon a rather novel set of circumstances. For the defence counsel said that the judgments showed a condition of things in favour of Thomas because there was established a breach of yontract on which Escott’s rights disappeared. The judgments concluded the rights, of the parties, bringing their litigation to an end. Because no referereuce to the question of competition had been made in the terms of the settlement of the first litigation, the court could not assume that Thomas would have agreed not to compete, since he was getting only £250 and not £I,OOO for the business. ■ Plaintiff was not entitled as a matter of law to fix the price of soap arbitrarily as he sought to do, nor to refuse to be bound by agreement. Plaintiff had his remedies for misrepresentation, either to rescind the agreement or apply for damages, but ho did nothing until an action was brought against him,' when he set up misrepresentation as a defence to the action.

Following legal argument Mr Justice Reed reserved his judgment.