In a recent decision, a loan agreement was found to have
restrained trade by calling for a $10,000 penalty triggered simply
by the fact of competition. Wind Logistics Professionals LLC v Universal
Truckload, Inc., 2019 WL 4600055 (N.D. Ga., Sept.
23, 2019).
In the case, an independent contractor who coordinated
transportation between Universal and a business unit of General
Electric Company, entered into a loan agreement under which
Universal loaned the contractor $85,000 in exchange for which he
agreed to represent only Universal for five years. Universal also
agreed to forgive one-fifth of the loan each year for five years.
The contractor agreed to repay the loan if he failed to meet
certain revenue goals or began competing with Universal within five
years.
