Ennis v. Interstate Distributors, Inc.

Ennis (defendant), a former officer of Interstate Distributors (plaintiff), received nearly $20,000 for a three-year, geographically limited covenant not to compete, but then worked for competitors, contacted Interstate's customers to sell competing products, and dealt with Interstate's own manufacturers and distributors throughout most of the covenant's term; Interstate sued to rescind the agreement and recover the $20,000 as restitution, and a jury ruled for Interstate. Ennis appealed, arguing rescission and restitution were improper because he had partially performed under the covenant.