Palmetto Mortuary v. Knight SystemsAnnotate this Case
Palmetto Mortuary Transport, Inc. sued Knight Systems, Inc. and Robert Knight (collectively, Knight) for breach of an asset purchase agreement executed in connection with the sale of Knight's mortuary transport business to Palmetto. A special referee found Knight breached the agreement by violating both a non-compete covenant and an exclusive sales provision contained in the agreement. Knight appealed, and the court of appeals reversed and remanded, holding the 150-mile territorial restriction in the non- compete covenant was unreasonable and unenforceable. The South Carolina Supreme Court reversed the court of appeals, holding that under the facts of this case, the territorial restriction in the non-compete covenant was reasonable and enforceable. The Court also found Knight's additional sustaining grounds to be without merit and therefore reinstated the special referee's order.