Lindskov v. LindskovAnnotate this Case
When Dennis Lindskov purchased Les Lindskov's interest in an automotive company, Dennis and Les signed a dissolution agreement that contained a non-disparagement clause. Les opened a competing business within months of the sale of his interest in the company. Dennis initiated a breach of contract and fraud and deceit action, alleging that the non-disparagement clause contained a covenant not to compete. The trial court granted Les's motions for summary judgment on both causes of action and dismissed Dennis's complaint. On appeal, the Supreme Court affirmed, holding the trial court properly granted Les's motions for summary judgment where (1) because the clause did not create a covenant not to compete, Les did not breach the dissolution agreement by opening a competing business, and (2) because Les did not have a fiduciary duty to disclose his intent to compete, he did not commit fraud or deceit as a matter of law.