Facts

Nahrin AG, a company based in Sarnen, manufactures food products that it sells primarily to individuals through itinerant sales representatives. On 1 January 1958, it concluded a written contract with Karl Anderhalden, assigning him the sales territory of the canton of Nidwald and the Obwalden municipalities of Engelberg, Kerns and Sachseln. This contract included a 3-year non-compete clause after the termination of the employment contract. After Anderhalden's departure in June 1961, he worked in his previous sales territory on behalf of Karl Letter, a former chief representative of Nahrin AG. Nahrin AG then brought an action against Anderhalden for breach of the non-compete clause and demanded payment of the contractual penalty. Anderhalden filed a counterclaim to obtain reimbursement of his unreimbursed travel expenses.

Considerations

The Federal Tribunal ruled that the conditions set out in Art. 356 CO for the validity of a non-compete clause were met in this case. Although Anderhalden was an itinerant sales representative within the meaning of Art. 3(2) LVc, the Tribunal considered that the particular circumstances of the case justified imposing such a clause on him. Anderhalden had indeed acquired extensive knowledge of Nahrin AG's clientele in his sales territory, which he could have exploited to the detriment of the company if he had switched to a…