Gaddy

Respondent Alliant Insurance Services, Inc. (Alliant), is an insurance brokerage business that obtains insurance for construction companies. In 2004, Alliant purchased a competing insurance brokerage, Gaddy Ward & Company Insurance Brokers (GWC), for $4.1 million. Pursuant to the purchase of the business, appellant G. Scott Gaddy, the majority shareholder in GWC, agreed in writing “to refrain from carrying on a business, directly or indirectly, which provides any [of Alliant’s] business” within the 58 counties of the State of California.

When it learned that Gaddy was contacting its clients, Alliant sought and obtained a preliminary injunction which, among other things, prohibits Gaddy from carrying on business directly or indirectly which “provides any company business” within the 58 counties of California.

Gaddy appeals. He contends the geographic scope of the injunction is unlawful. He argues it should be limited to only four counties where, according to Gaddy, Alliant has construction clients.

For reasons that follow, we shall reject Gaddy’s arguments and affirm the order granting the preliminary injunction. We find no reason to refuse to enforce the geographic…