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Tuesday, January 11, 2005

Enforcement of Restrictive Covenant

Gerald Haberkorn and Kevin J. Clancy successfully represented the owner of a fast-food restaurant franchise in an action seeking to enforce a restrictive covenant and enjoin the opening of another franchise within a restricted area. The client had purchased its franchise as well as a license to use certain trademarks from the defendants two years ago. The purchase agreement and the license agreement prohibited the defendants from opening another franchise within a 1.9 mile radius of the client's store, or from licensing the same trademarks to any business within that area. Upon learning that the defendants intended to open a competing restaurant within only 1.2 miles, Lowis & Gellen filed a motion for a temporary restraining order and preliminary injunction to prevent the opening. Mr. Haberkorn and Mr. Clancy not only obtained the requested injunction in favor of their client, but also secured an order requiring the defendants to pay 100% of their client's attorneys fees incurred in obtaining that injunction