Mohawk Maintenance Co. v. Kessler

In Mohawk Maintenance Co. v Kessler, 52 NY2d 276 (1981), even though there were express covenants, the Court of Appeals found that the sale of a business contained an "implied covenant" to "refrain from soliciting former customers following the sale of the good will' of a business" (Mohawk, 52 NY2d at 284). It was held that such implied covenant "must logically be regarded as permanent one that is not subject to divestiture upon the passage of a reasonable period of time" (Mohawk, 52 NY2d at 284-85 reasoning that the implied covenant imposed by law is necessary to "prevent the seller from taking back that which he has purported to sell."). Even though the parties had agreed to other, less-restrictive non-compete covenants, the Court of Appeals still applied a permanent durational prohibition on soliciting former customers. (See Mohawk, 52 NY2d at 286.)