Freres Lumber Co., Inc. - Page 21

                                                 - 21 -                                                    

            that the facts favoring petitioner outweigh the facts upon which                               
            respondent relies.                                                                             
                  4.     Mary Walker's Covenant Not To Compete                                             
                  We believe Mary Walker lacked the technical expertise needed                             
            to compete with petitioner.  She had done office work in the                                   
            forest products industry for many years, but she had not bid for                               
            timber, sold products, or supervised operations.  Petitioner's                                 
            expert, Paul Clausen (Clausen) of Business Valuation Research,                                 
            Inc., of Portland, Oregon, testified that Mary Walker did not                                  
            contribute much to the Walker entities.  There is no convincing                                
            evidence that Mary Walker's competition would damage petitioner,                               
            or that she had the kind of business relationships with suppliers                              
            and customers that would enable her to compete with petitioner.                                
            There is no credible evidence that petitioner had a genuine                                    
            interest in eliminating Mary Walker as a competitor.  In 1988,                                 
            Mary Walker was no longer doing much with the Walker entities.                                 
            She did not say that she wanted to compete.  There is no                                       
            convincing evidence that she intended to compete.  These factors                               
            favor respondent.                                                                              
                  Petitioner relies on the facts that in 1988, Mary Walker                                 
            was 65 and in good health, had financial resources, and had a                                  
            covenant that was limited to 5 years and to a 140-mile radius                                  
            around Lyons, Oregon.  We think these limits would have                                        
            reasonably kept Mary Walker from competing with petitioner.                                    

Page:  Previous  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  30  Next

Last modified: May 25, 2011