The Archive · 1923

Trade Restriction Covenants

Important Mixed Court Ruling in Action by Mahriahs, Ld., against Mme. Linoff This action, after many hearings reached its conclusion when the Mixed Court consisting of Magistrate Tsang, Mr. Mead (British Assessor) and Mr. Ivanoff (Special Assessor for Russian cases) delivered a lengthy judgment in favour of Miss Moore.

Mr. K. E. Newman appeared for Miss Moore and for the creditors and trustee in bankruptcy of Madame Linoff-Arcus. Mr. P. W. Goldring appeared for Madame Linoff and for Mr. Arcus her husband.

The Court in giving judgment said:

The defendant in this case, before June 23, 1921, carried on business as a dressmaker and milliner at 3a and 4a Broadway, known as the 'Maison des Modes" and: had become financially embarrassed On that date she entered into an agreement. with Miss Moore, the first plaintiff wherely Miss Moore purchased' the whole goodwill, book debts. furniture and fixtures, ete. of the said business in Shanghai. As part of the consideration for the sale Miss Moore undertook to pay the debts of the defendant and the defendant in her turn was to enter the employment of the plaintiff at a salary for the term of three years; the defendant also undertook not to carry on business as a dressmaker in Shanghai for a neried of three years after the termination of her employment.

The second and third plaintiffs, Mariahs Inc. and Mariah's Ld, are companies formed' subbequently to June 23, 1921, to take over and carry on with Miss Moore's ce-operation the business which she had _purch¥sed from the defendant.

The material clauses of the contract are as follows:—

Text read from the printed page and cleaned; old type leaves the occasional error.

Your account