A decision in Delaware Chancery Court over competing Italian speciality stores in Rehoboth Beach, contains a piece of advice for owners of limited liability companies – negotiate non-compete agreements or risk having a competitor on your doorstep.
“…sometimes a lie, no matter how morally problematic, is just a lie,” Vice Chancellor Sam Glasscock wrote in his ruling.
According to a decision from Glasscock, Robert Ciprietti and Joseph Curzi could not prove wrongdoing when Louis Bascio reportedly said he would not compete with their business Touch of Italy after he dropped out as a partner in 2012.
According to the ruling, Bascio said he was moving to Pennsylvania after being associated with the business since 2009.
Bascio later formed Frank and Louie’s with his brother as a specialty store on the same block as the Touch of Italy.
However, Glasscock said the LLC agreement did not include any provisions regarding one partner leaving and starting a Frank and Louie’s as a competing grocery,” he wrote.
Ciprietti and Curzi were seeking monetary damages.
Touch of Italy has multiple locations in Lewes and Rehoboth.
Click on the link below for a copy of the decision:
touch of italy motion to dismiss – mem. op.
