FIRST ALABAMA BANCSHARES, INC. v. McGAHEY

SC 2416.

355 So.2d 681 (1977)

FIRST ALABAMA BANCSHARES, INC. v. Hayse McGAHEY.

Supreme Court of Alabama.

As Corrected On Denial of Rehearing March 3, 1978.


Attorney(s) appearing for the Case

Lawrence B. Clark and Reid B. Barnes, Birmingham, for appellant.

Ralph Smith, Jr., Guntersville, for appellee.

T. J. Carnes, of Carnes & Carnes, Albertville, for intervenors.


JONES, Justice.

This appeal arises from the denial of an injunction sought by Appellant, First Alabama Bancshares, Inc., to enforce an alleged covenant not to compete between itself and Appellee, Hayse McGahey, a past director, president and stockholder of the Citizens Bank of Guntersville. Citizens Bank, subsequent to the date the covenant was made, merged into the Bank of Guntersville, a wholly-owned subsidiary of Bancshares, created solely as a vehicle to acquire...

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