SUPREME COURT OF NEW YORK, APPELLATE DIVISION, FIRST DEPARTMENT
July 10, 1969
CENTRAL AIR TERMINAL, INC., APPELLANT, ET AL., PLAINTIFFS,
TRANSPORTATION CORPORATION OF AMERICA, DOING BUSINESS AS TRANS CARIBBEAN AIRWAYS, INC., RESPONDENT
Concur -- Capozzoli, J. P., Tilzer, Markewich and Steuer, JJ.
Defendant is a party to an "Interline Agreement", which provides for the allocation of counter space for the sale of airline tickets to the shareholder airlines of plaintiff-corporation. Paragraph 9 of that agreement contains an unambiguous and reasonable covenant prohibiting shareholder airlines from maintaining offices for the sale of transportation within a limited area in midtown Manhattan. Defendant, which does maintain two offices within close proximity to the restricted area, has now opened an office within the restricted area itself -- in clear violation of the terms of its agreement with plaintiff. A clear legal right to the relief sought has been demonstrated by plaintiff and defendant has shown nothing of an equitable or legal nature to move this court, as a matter of discretion, to deny the requested relief. (Evangelical Lutheran Church v. Sahlem, 254 N. Y. 161.) Plaintiff is directed to file an undertaking in the sum of $2,500.
Order, entered on April 23, 1969, denying plaintiff's motion for a temporary injunction restraining defendant from operating an airline ticket office in violation of the terms of a restrictive covenant, unanimously reversed on the law, the facts and in the exercise of discretion, with $30 costs and disbursements to plaintiff-appellant, and motion granted.
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