- 12 - question is whether the payments allocated to the covenant not to compete are, in fact, payments for something else. Id. Using the reasoning set down in the above-cited cases and similar cases, and based on the facts as surmised from the records of the instant cases, we conclude that the position maintained by respondent had a reasonable basis in both fact and law throughout both proceedings. The facts as understood by respondent, especially when viewed collectively, form the foundation of her position. The stock redemption and the covenants not to compete were executed simultaneously. Michael informed respondent's agent that significant negotiation did not precede the allocation and that both he and Brigitte simply accepted the offer as presented by Brinson. Michael further informed respondent's agent that the underlying factor motivating Brigitte's and his decision to accept the offer as presented, without consideration on their behalf, was the desire to quickly sever all ties with Brinson. Additionally, respondent construed the available facts pertaining to Brigitte's age and death as suggesting that the covenant not to compete was erroneously valued. The original covenant not to compete had a 15-year life and was executed when Brigitte was 62 years of age. Respondent's concern was whether and to what extent Brigitte could pose a competitive threat to Brinson for a 15-year period ending when Brigitte would be 77 years old. Moreover, in light of Brigitte’s having died fromPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Next
Last modified: May 25, 2011