Christian

I

Introduction

When defendant Paul D. Christian (Christian) became a partner in the accounting firm of plaintiff Weber, Lipshie & Co. (Weber, Lipshie), he agreed that in the event he withdrew or was expelled from the partnership he would not, for a period of five years, service any of the accounts serviced by Weber, Lipshie (the restrictive covenant); he further agreed that the damages to the partnership for the loss of fees from any such clients would be measured by doubling Weber, Lipshie’s time charges for those clients for the twelve months immediately preceding their loss (the measure of damages or liquidated damages provision). We hold these agreements are lawful and binding on Christian after his expulsion from Weber, Lipshie; we direct that a judgment on a jury verdict in favor of Weber, Lipshie be entered against Christian, to be modified in accordance with the liquidated damages provision.

II

Summary

Following Christian’s expulsion from Weber, Lipshie, certain clients took their business to Christian. Weber, Lipshie sued Christian for liquidated damages in accordance with the agreement, and Christian cross-complained for breach of contract. The trial court…