Cut N Up Hair Salon of Carolina Beach, LLC v. Bennett ( 2014 )


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  • An unpublished opinion of the North Carolina Court of Appeals does not constitute
    controlling legal authority. Citation is disfavored, but may be permitted in
    accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of
    A   p   p    e   l   l   a    t   e       P   r    o   c   e   d   u    r   e   .
    NO. COA13-1417
    NORTH CAROLINA COURT OF APPEALS
    Filed: 16 September 2014
    CUT N UP HAIR SALON OF CAROLINA
    BEACH, LLC, and KIMBERLY A. LEWIS,
    Plaintiffs,
    v.                                     New Hanover County
    No. 12 CVS 3023
    STEPHANIE BENNETT and JODA
    BENNETT,
    Defendants.
    Appeal by Defendants from Order entered 23 August 2013 by
    Judge W. Allen Cobb, Jr., in New Hanover County Superior Court.
    Heard in the Court of Appeals 4 June 2014.
    Law Offices of G. Grady Richardson, Jr., P.C., by G. Grady
    Richardson, Jr., for Plaintiffs.
    Broadwell Phillips & Potter, PLLC, by J. Hunter Broadwell,
    for Defendants.
    STEPHENS, Judge.
    Factual Background and Procedural History
    This    case   arises    from    the   operation      of    a   home-based
    hairstyling      salon    by    Defendants      Stephanie        Bennett   (“Ms.
    Bennett”) and Joda Bennett (“Mr. Bennett”) in Carolina Beach,
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    North Carolina. Before opening the home-based salon, Ms. Bennett
    owned and operated a beauty salon under the trade name “Cut N
    Up.” On 17 May 2010, Ms. Bennett sold Cut N Up to Plaintiff
    Kimberly A. Lewis for $20,000.
    Ms. Bennett is a licensed cosmetologist. She does not have
    a   high    school    diploma     or    a     college    degree.      Lewis   has   an
    undergraduate degree in business administration.                       The purchase
    agreement was prepared by Lewis, who downloaded a template from
    the internet and made various handwritten changes. In pertinent
    part, the signed agreement provided that Ms. Bennett (1) would
    not engage in a competitive business for a period of five years
    and within a fifty-mile radius of Cut N Up, and (2) would not
    make known the names and addresses of the Cut N Up customers or
    solicit     those     customers        for    a      competitive     business    (the
    “restrictive       covenants”    or     the       “non-compete     provisions”).    No
    handwritten changes were made to this section of the agreement.
    For approximately two years following the sale, Ms. Bennett
    remained at Cut N Up as an independent cosmetologist. She was
    paid   by    the     customers    and       rented    salon   space    from     Lewis.
    Pursuant to the purchase agreement, which stipulated that Ms.
    Bennett had “1 yr. of pre-paid [b]ooth rent,” her rent for the
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    first year was paid out of the total purchase price for the
    salon. Afterward, Ms. Bennett paid the rent herself.
    On 30 April 2012, Lewis decided not to renew Ms. Bennett’s
    rental contract and asked Ms. Bennett to leave the salon. In an
    attempt to avoid litigation, Lewis then offered to reduce the
    geographic    limitation    in   the    restrictive          covenant     from    fifty
    miles to twenty miles in exchange for certain commitments by Ms.
    Bennett. Ms. Bennett declined that offer and, in May,                             began
    practicing    cosmetology    from      her       home   with    the     help    of   Mr.
    Bennett. Ms. Bennett’s home is located approximately two miles
    from Cut N Up Hair Salon.
    On 1 August 2012, Plaintiffs Lewis and Cut N Up Hair Salon
    of   Carolina    Beach,    LLC   (“Cut       N     Up”),     filed    suit      against
    Defendants,     seeking    compensatory           damages,     punitive        damages,
    costs and expenses, attorneys’ fees, and an injunction. On 13
    August 2012, the trial court, Judge Paul L. Jones presiding,
    issued a temporary restraining order enjoining Defendants from
    operating the home-based salon. Approximately one month later,
    on 18 September 2012, the trial court, Judge Gary E. Trawick
    presiding, entered a consent order. The order memorialized the
    parties’   agreement,      without     prejudice        to     either    party,      and
    -4-
    stated that Defendants would be permitted to continue operating
    the home-based salon subject to certain restrictions.
    Plaintiffs sought to dissolve the consent order one year
    later, on 6 August 2013. By order filed 23 August 2013, the
    trial   court,    Judge   W.   Allen    Cobb,      Jr.,    presiding,      granted
    Plaintiffs’ motion, dissolved the consent order, and permanently
    enjoined Defendants from operating the home-based salon until
    the restrictive covenants were set to expire on 17 May 2015. By
    separate order filed that same day, the trial court                        granted
    Plaintiffs’ motions for attorneys’ fees, costs, and sanctions in
    the amount of $13,660.60. On 10 September 2013, Defendants filed
    notice of appeal from the trial court’s order, seeking review
    only “of the provisions of the [o]rder imposing a permanent
    injunction against Defendants.”
    Discussion
    On appeal, Defendants argue that the trial court erred in
    granting partial summary judgment to Plaintiffs and imposing a
    permanent injunction on Defendants because (1) the restrictive
    covenants   are   unenforceable    as        a   matter   of   law   or,   in   the
    alternative, (2) the case involves disputed issues of material
    fact. We disagree.
    I. Appellate Jurisdiction
    -5-
    As Defendants acknowledge in their notice of appeal, this
    case    is     interlocutory    in     nature.   See    Liggett   Grp.,    Inc.    v.
    Sunas, 
    113 N.C. App. 19
    , 23, 
    437 S.E.2d 674
    , 677 (1993) (“A
    grant     of     partial     summary     judgment,      because    it     does    not
    completely dispose of the case, is an interlocutory order from
    which    there     is   ordinarily      no   right     of   appeal.”)   (citations
    omitted).       Therefore,     Defendants      have    no   immediate     right    of
    appeal.      
    Id. (“Such prohibition
          promotes     judicial    economy    by
    preventing fragmentary appeals.”) (citation omitted).
    Nonetheless, in two instances a party
    is permitted to appeal interlocutory orders:
    first,   where  there   has   been  a  final
    determination of at least one claim, and the
    trial court certifies that there is no just
    reason to delay the appeal [under] Rule
    54(b); and second, if delaying the appeal
    would prejudice a “substantial right.” As
    the court below made no certification, the
    first avenue of appeal is closed.
    Regarding the second, it has been frequently
    noted the substantial right test is much
    more easily stated than applied. There are a
    few   general    principles    governing    what
    constitutes a “substantial right” and[,]
    thus[,] it is usually necessary to consider
    the particular facts of each case and the
    procedural     context      in     which     the
    interlocutory decree was entered. [Generally
    speaking, a] substantial right . . . is
    considered affected if there are overlapping
    factual issues between the claim determined
    and any claims which have not yet been
    determined because such overlap creates the
    potential     for     inconsistent      verdicts
    -6-
    resulting from           two    trials     on        the     same
    factual issues.
    
    Id. at 23–24,
    437 S.E.2d at 677 (citations and certain internal
    quotation marks omitted; emphasis in original).
    This    Court     has    previously      recognized          that    an     injunction
    affecting      a    person’s      livelihood        involves    a    substantial         right
    and, therefore, justifies immediate appellate review. Wade S.
    Dunbar Ins. Agency, Inc. v. Barber, 
    147 N.C. App. 463
    , 466–67,
    
    556 S.E.2d 331
    , 334 (2001) (citations omitted). We have also
    held    that       an   order     enjoining     one     party       from     competing     in
    violation of a non-competition agreement affects a substantial
    right. QSP, Inc. v. Hair, 
    152 N.C. App. 174
    , 176, 
    566 S.E.2d 851
    , 852 (2002). Ms. Bennett’s ability to continue operating the
    home-based salon clearly affects her livelihood. Moreover, the
    trial   court’s         order   granting       Plaintiffs’       motion          for   partial
    summary       judgment      was     issued      pursuant        to    the        non-compete
    agreement. Accordingly, we agree with Defendants that the trial
    court’s       order     affects     a   substantial       right           and,     therefore,
    proceed to immediate appellate review of this issue.
    II. Standard of Review
    “Our standard of review of an appeal from summary judgment
    is de novo; such judgment is appropriate only when the record
    shows that there is no genuine issue as to any material fact and
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    that any party is entitled to a judgment as a matter of law.” In
    re Will of Jones, 
    362 N.C. 569
    , 573, 
    669 S.E.2d 572
    , 576 (2008)
    (citation and internal quotation marks omitted; italics added).
    Review is based only on the pleadings and evidence before the
    trial court. Liggett Grp., 
    Inc., 113 N.C. App. at 25
    , 437 S.E.2d
    at 678 (citations omitted). “The burden of establishing a lack
    of   any   triable   issue   of   fact    resides   with    [Plaintiffs]     as
    movant[s] and[,] thus[,] all evidence must be viewed in the
    light most favorable to [Defendants].” 
    Id. (citation omitted).
    III. The Restrictive Covenants
    Defendants     argue   that    the      restrictive     covenants     are
    unenforceable as a matter of law because they exceed Plaintiffs’
    legitimate business interests with regard to (1) the restrained
    activity and (2) the geographic limitation on that activity. As
    a result, Defendants assert, the trial court erred by enjoining
    them from operating the home-based salon. We disagree.
    Restrictive    covenants    may    be   enforced     against   a   former
    owner or a former employee. United Labs., Inc. v. Kuykendall,
    
    322 N.C. 643
    , 649, 
    370 S.E.2d 375
    , 380 (1988).
    Whether the covenantor is a former owner or
    a former employee, intimate knowledge of the
    business operations or personal association
    with customers provides an opportunity to
    either the former employee or the former
    owner   to  injure   the  business   of  the
    -8-
    covenantee.   A  non-competition   agreement,
    therefore,   is   a   device  used   by   the
    covenantee to prevent the covenantor from
    utilizing this opportunity to do injury.
    
    Id. (citations omitted).
        Accordingly,    our    Supreme     Court    has
    stated that a non-competition covenant is valid and enforceable
    when it is “(1) in writing; (2) reasonable as to terms, time,
    and territory; (3) made a part of the employment contract; (4)
    based    on   valuable   consideration;     and   (5)    not   against    public
    policy.” Triangle Leasing Co. v. McMahon, 
    327 N.C. 224
    , 228, 
    393 S.E.2d 854
    , 857 (1990) (citations omitted).
    [A] further consideration by [our appellate
    courts], in recognizing the validity of
    these covenants, is that at the time of
    entering     these    contracts     containing
    covenants   not   to  compete   both   parties
    apparently regarded the restrictions as
    reasonable and desirable. Essentially, by
    enforcing the restrictions a court is only
    requiring the defendants to do what they
    agreed to do. While the law frowns upon
    unreasonable restrictions, it favors the
    enforcement of contracts intended to protect
    legitimate interests. It is as much a matter
    of   public   concern  to   see   that   valid
    covenants are observed as it is to frustrate
    the oppressive ones.
    United    Labs.,    
    Inc., 322 N.C. at 649
    ,    370    S.E.2d    at   380
    (citations,      internal   quotation    marks,    and    brackets      omitted;
    emphasis added). What constitutes a “legitimate interest” is a
    question of law for the court. See Kadis v. Britt, 
    224 N.C. 154
    ,
    -9-
    158,    
    29 S.E.2d 543
    ,        545    (1944)    (“Since     the    determinative
    question     is    one     of    public       policy,    the     reasonableness       and
    validity of the contract is a question for the court and not for
    the jury, to be determined from the contract itself and admitted
    or proven facts relevant to the decision.”) (citation omitted).
    A. Restrained Activity
    Defendants     aver       that       the    restrictive    covenants      exceed
    Plaintiffs’       legitimate         business      interests    with    regard   to   the
    restrained activity (i.e., engaging in business competitive with
    Cut N Up) because (1) section 15.01 is overbroad and (2) section
    15.02   places     “unrestricted            and   undefined”    limitations      on   Ms.
    Bennett. Alternatively, Defendants argue that summary judgment
    is not proper because there is a disputed issue of material fact
    as to this issue. We disagree.
    i. Section 15.01
    Section     15.01        of    the    purchase     agreement       provides     as
    follows:
    The Seller expressly agrees that for a
    period of five years following the execution
    of this Agreement, _________ [he or she]
    will not, directly or indirectly, as an
    employee,    agent,    proprietor,    partner,
    stockholder,     officer,     director,     or
    otherwise, render any services to, or on
    _________ [his or her] own behalf engage in
    or own a part or all of any business which
    is the same as, similar to, or competitive
    -10-
    with the Business, which is being sold to
    Buyer, anywhere within a 50 mile radius from
    the current location of the Business that is
    being sold without prior written consent of
    the Buyer.
    Defendants contend that this section exceeds Plaintiffs’
    legitimate       business    interests          due   to    overbreadth        because        it
    purports to prohibit Ms. Bennett from “‘rendering any services’
    to   another     business        regardless      of   the    form       or   type   of    such
    services.” Citing Hartman v. W.H. Odell & Assocs., Inc., 
    117 N.C. App. 307
    , 
    450 S.E.2d 912
    (1994), Defendants assert that the
    “all-encompassing language [of section 15.01] restricts activity
    wholly     unrelated        to     cosmetology”        and       produces        oppressive
    results. We disagree.
    “A covenant must be no wider in scope than is necessary to
    protect    the    business        of    the    employer.     If     a    contract        by   an
    employee    in    restraint        of    competition        is    too    broad      to   be    a
    reasonable protection to the employer’s business it will not be
    enforced.” 
    Id. at 316,
    450 S.E.2d at 919 (citations and internal
    quotation marks omitted). In Hartman, the parties agreed that
    the plaintiff was precluded “from working with any actuarial
    business in North Carolina (or seven other states), even if the
    business by which he was engaged did not service any customers
    located in the eight states.” 
    Id. at 316–17,
    450 S.E.2d at 919.
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    Importantly, “the covenant was not limited so as to prevent
    [the] plaintiff’s competition for [the] defendant’s customers
    only in the applicable territory.” 
    Id. at 317,
    450 S.E.2d at 919
    (internal quotation marks omitted; emphasis added). In addition,
    (1) the covenant could be read to prohibit the plaintiff from
    working for any business that provided actuarial services, (2)
    the    covenant   required   the   plaintiff   to   have     no   association
    whatsoever with any business that provided actuarial services,
    and (3) no legitimate business interest supported a worldwide
    restriction on competition of this sort. See id. at 
    317, 450 S.E.2d at 919
    –20. Accordingly, we determined that the covenant
    was overly broad and unenforceable. 
    Id. at 317,
    450 S.E.2d at
    920.
    Here, unlike the covenant Hartman, section 15.01 only works
    to prevent competition between Ms. Bennett and Cut N Up in the
    applicable    territory,     a   fifty-mile    radius   of    “the    current
    location of [Cut N Up].” By its terms, the covenant allows Ms.
    Bennett to continue working as a cosmetologist anywhere, and for
    any business, outside of this radius. Therefore, Hartman is not
    applicable, and the covenant is not overly broad. Defendants’
    argument is overruled.
    ii. Section 15.02
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    Section   15.02      of   the     purchase   agreement    provides     as
    follows:
    The Seller shall not for a period of five
    years immediately following the execution of
    this Agreement, regardless of any reasons or
    cause, either directly or indirectly:
    (a) make known to any person, firm[,] or
    corporation the names and addresses of any
    of the customers of the Seller or Buyer or
    any other information pertaining to them; or
    (b) call on, solicit, or take away, or
    attempt to call on, solicit, or take away
    any of the customers of the Seller on whom
    the Seller called or with whom _________ [he
    or she] became acquainted during ownership
    of this Business either for Seller or for
    any other person, firm[,] or corporation.
    Citing Medical Staffing Network, Inc. v. Ridgway, 194 N.C.
    App. 649, 
    670 S.E.2d 321
    (2009), Defendants contend that this
    section      exceeds    Plaintiffs’        legitimate   business     interests
    because (1) it does not define the term “customer” or (2) it
    “would operate to prevent M[s]. Bennett from reaching out to
    friends and former clients” if the term “customer” is considered
    to mean “all patrons of the salon.” Defendants assert that “[n]o
    legitimate business interest justifies preventing M[s]. Bennett
    from soliciting or calling upon friends and clients developed
    over   the   course    of   20   years    . . .   ‘regardless   of   reason   or
    cause.’” We are unpersuaded.
    -13-
    To be valid, the restrictions [in a
    covenant not to compete] must be no wider in
    scope than is necessary to protect the
    business of the employer. In North Carolina,
    the protection of customer relations against
    misappropriation by a departing employee is
    well recognized as a legitimate interest of
    an employer. Additionally, a covenant is
    reasonably necessary for the protection of a
    legitimate business interest if the nature
    of the employment is such as will bring the
    employee in personal contact with patrons or
    customers of the employer, or enable [her]
    to acquire valuable information as to the
    nature and character of the business and the
    names and requirements of the patrons or
    customers.
    
    Id. at 656,
    670 S.E.2d at 327 (citations, internal quotation
    marks, and brackets omitted).
    In   Ridgway,   we   determined     that   certain   restrictive
    covenants were not enforceable (1) when the covenants “would
    prevent [the defendant] from working in any business within a
    60-mile radius of Raleigh that competes with [the plaintiff], or
    any of its divisions, subsidiaries, affiliates, predecessors, or
    assignees, even if [the defendant’s] employment duties for [the
    plaintiff] had nothing to do with that business” and (2) when
    the covenants prevented the defendant
    not only from engaging in business with
    current or former clients of [the plaintiff]
    with whom he developed a relationship, but
    also prohibit[ed] him from soliciting the
    business of any [client of the plaintiff],
    which   as   defined   by   the   agreement,
    -14-
    includ[ed]   clients    of   any    of   [the
    plaintiff’s] affiliates or divisions outside
    the medical staffing business with whom [the
    defendant] would not have had any contact.
    
    Id. at 657,
    670 S.E.2d at 328. The undefined term in that case
    was   the   list   of   the   plaintiff’s    “affiliated    companies   that
    engage in business distinct from the medical staffing business
    in which [the defendant] had been employed.” 
    Id. There was
    no
    evidence that these companies engaged in the same business as
    the plaintiff.      
    Id. Therefore, we
           held, the plaintiff had no
    legitimate business interest in preventing such               solicitation,
    and the covenants were not enforceable. 
    Id. Here, unlike
    Ridgway, section 15.02 limits Ms. Bennett’s
    ability to solicit “customers of Seller,” i.e., customers of Ms.
    Bennett, “either for Seller or for any other person, firm[,] or
    corporation.”      In   the   context   of   this   case,   the   meaning   of
    “customer of Seller” is clear; it cannot refer to anyone other
    than the individuals Ms. Bennett serviced while she owned Cut N
    Up, i.e., the individuals serviced “during ownership of [the
    b]usiness.” These customers, obviously, have a direct connection
    to the vitality and success of the Cut N Up business. Unlike the
    customers in Ridgway, these individuals are not defined broadly
    to include customers of an entirely different business or set of
    businesses. Indeed, section 15.02 makes no statement that Ms.
    -15-
    Bennett    is    barred       from     soliciting          cosmetology      customers   in
    general or customers from some other type of business. Rather,
    Ms. Bennett is barred from soliciting the customers of Cut N Up
    Hair   Salon     “on    whom       [she]   called     or    with     whom   [she]   became
    acquainted during ownership of [Cut N Up].” This limitation is
    necessary to protect Cut N Up’s business.
    Furthermore, we note that, despite Defendants’ contention
    to the contrary, section 15.02 does not prevent Ms. Bennett from
    “reaching out to friends and former clients” in a noncommercial
    capacity. The language of the covenant is that the Seller, Ms.
    Bennett, may not — regardless of any reasons or cause — “call
    on,” “solicit,” or attempt to call on, solicit, or “take away
    any of the customers of the Seller” for herself or some other
    entity. The straightforward implication from these words, “for
    herself,”       is     that    Ms.     Bennett        is    barred      from   contacting
    customers for some commercial purpose, not that she is barred
    from “reaching out.” Accordingly, we conclude that section 15.02
    is not wider in scope than necessary to protect the legitimate
    business    interests         of    Cut    N    Up.   Ridgway      is   unavailing,     and
    Defendants’ argument is overruled.
    B. Geographic Scope
    -16-
    Defendants       next     contend          that      the     covenants       are
    unenforceable pursuant to our opinion in Beasley v. Banks, 
    90 N.C. App. 458
    , 
    368 S.E.2d 885
    (1988), because the fifty-mile
    restriction on competition is more extensive in geographic scope
    than   is    reasonably   necessary         to    protect    Plaintiffs’      business
    interests.     For   support,        Defendants      point    out    that     (1)   the
    restriction was drafted pursuant to a generic form and (2) Lewis
    had previously offered to reduce the restriction, in the context
    of   her    settlement    offer       to    amend    the     agreement      and   avoid
    litigation, to twenty miles. We are unpersuaded.
    “The territory excluded from competition by an agreement
    such as this one must be no greater than is reasonably necessary
    to protect the covenantee’s business interest, and if it is
    unreasonably extensive the entire covenant fails since equity
    will neither enforce nor reform an overreaching and unreasonable
    agreement.” 
    Id. at 460,
    368 S.E.2d at 886 (citations omitted).
    Generally speaking, a restriction as to territory is reasonable
    when the plaintiff is engaged in business within that area.
    Safety Equip. Sales & Serv., Inc. v. Williams, 
    22 N.C. App. 410
    ,
    414, 
    206 S.E.2d 745
    , 748 (1974) (concluding that the 150-mile-
    radius      contained    in    the    parties’       restrictive      covenant      was
    enforceable as not unreasonable when the plaintiff was “engaged
    -17-
    in   business   in    an    area   encompassing     a    175[-]mile     radius   of
    Wilmington”). This Court has also identified the following six
    factors to consider when determining the reasonableness of the
    geographic scope of a covenant not to compete:
    (1) the area or scope of the restriction;
    (2) the area assigned to the employee;
    (3) the area where the employee actually
    worked; (4) the area in which the employer
    operated;   (5) the nature of the business
    involved;   and   (6) the   nature of  the
    employee’s duty and his knowledge of the
    employer’s business operation.
    Farr Assocs., Inc. v. Baskin, 
    138 N.C. App. 276
    , 281, 
    530 S.E.2d 878
    , 882 (2000) (citation omitted).
    In Beasley, a restrictive covenant prevented the defendant
    optometrist from dispensing eyeglasses within a radius of thirty
    miles of the town of Havelock for five years after he vacated
    the plaintiff optician’s 
    premises. 90 N.C. App. at 459
    , 368
    S.E.2d at 886. The defendant violated that provision, and the
    plaintiff brought suit. 
    Id. On appeal,
    we held that the thirty-
    mile    restriction        was   not   reasonable       because   the    parties’
    affidavits showed that
    (1) the area excluded from competition by
    the covenant includes Jacksonville, Atlantic
    Beach, Atlantic, Oriental, Emerald Isle,
    Harker’s   Island,    Vanceboro,   Ocracoke,
    Aurora, Arapahoe, Marshallberg, and Cove
    City, and (2) [the]       plaintiff has no
    established pool of customers in any of
    -18-
    those    places.    For    [the     p]laintiff’s
    affidavit states that during the three years
    the parties occupied adjoining offices he
    referred    to   [the]   defendant     all   his
    customers who needed to have their eyes
    tested and glasses prescribed; and [the]
    defendant’s affidavit states that of the
    hundreds    of   customers    [the]    plaintiff
    referred to him not one resided in any of
    the places named above, all of which are in
    the area excluded from competition by the
    covenant and several of which are quite
    populous. These forecasts of proof, standing
    alone, are sufficient to establish that
    [the] plaintiff had no pool of customers in
    any of the places listed that he had a legal
    right to protect and that obligating [the]
    defendant not to sell eyeglasses in those
    places was unnecessary for the protection of
    [the] plaintiff’s business.
    
    Id. at 460,
    368 S.E.2d at 886 (emphasis added). The Court also
    noted that, on summary judgment, the plaintiff’s mere statement
    that      “his    customers    [were]        resid[ing]        throughout    the
    thirty[-]mile radius area and beyond,” without specific facts to
    support    that   statement,    was     insufficient      to     establish   the
    reasonableness      of   the   geographic       area   proscribed      by    the
    covenant. 
    Id. at 460–61,
    368 S.E.2d at 887 (internal quotation
    marks omitted). Accordingly, we vacated the trial court’s order
    granting summary judgment in favor of the plaintiff and remanded
    the case to the trial court for entry of judgment dismissing the
    action. 
    Id. at 461,
    368 S.E.2d at 887.
    -19-
    Cut N Up is located at 913 North Lake Park Boulevard in
    Carolina Beach, North Carolina. During Lewis’s deposition, she
    testified   as   follows   regarding   the   basis   for   the   fifty-mile
    restriction:
    Q. Do you know where the town of Delco is
    located?
    A. No.
    Q. Never been to Delco?
    A. No.
    Q. All right. Have you ever heard of Delco?
    A. No.
    Q. . . . [I]f I tell you that Delco is
    within 50 miles of Carolina Beach, do you
    believe that Ms. Bennett opening a competing
    salon in Delco would tend to impact your
    business?
    A. Yes.
    Q. Okay. And why do you say that?
    A. Because I know from the clients that we
    have, there are people that drive to the
    salon that are 20, 30, 40, 50 miles from
    there and they come to our salon, they’ve
    been coming to our salon for 10, 15 years.
    . . .
    Q. And tell me why this 50-mile figure is
    the significant number. Why . . . did you
    chose 50 miles? Why is that the number that
    defines your business interest?
    -20-
    A. It seemed to me to be, for a period of
    five years while I established base with my
    clients, the best buffer zone for [Ms.
    Bennett] not to compete with me.
    Ms. Bennett did not discuss where the Cut N Up customers
    lived in relation to the fifty-mile restriction. She referenced
    a customer address book on a number of occasions, but later
    stated that the book did not actually include the customers’
    addresses.        This    statement     is   consistent    with   the    copy   of
    “Stephanie’s Client List,” submitted by Plaintiffs with their
    motion for partial summary judgment, which includes only names
    and phone numbers for Ms. Bennett’s customers, not addresses.
    Unlike the defendant in Beasley, Ms. Bennett offered no evidence
    that the Cut N Up customer base was, in its entirety, within an
    area smaller than the fifty-mile radius proscribed by section
    15.01.
    Therefore, unlike Beasley, we are presented in this case
    with a      forecast of evidence         in which Plaintiffs       attest that
    “there are people that drive to the salon that are 20, 30, 40,
    50 miles from there and . . . , they’ve been coming to our salon
    for   10,    15    years.”    Defendants,       on   the   contrary,    offer   no
    evidence     on    that   issue.   In    Beasley,    the   plaintiff’s    general
    statement that he had a pool of customers in the entire area
    covered by the covenants was insufficient to support summary
    -21-
    judgment    because     the   defendant    had     offered    evidence      to   the
    contrary.   90   N.C.      App.   at   
    460–61, 368 S.E.2d at 886
    .   Here,
    however, Defendants offer no evidence that Cut N Up’s customer
    base fails to include the entire area encompassed by the fifty-
    mile restriction. Therefore, the undisputed evidence is that Cut
    N Up’s customer base covered the full area described in the
    restrictive covenants. As a result, the parties’ forecast of
    evidence indicates that Cut N Up was engaged in business in the
    area   proscribed     by    the   restrictive    covenants.      The   geographic
    limitation is, therefore, reasonable, and Defendants’ argument
    is overruled. See 
    Williams, 22 N.C. App. at 414
    , 206 S.E.2d at
    745.
    IV. Genuine Issue of Material Fact
    Alternatively,       Defendants     argue       that    partial      summary
    judgment is not proper because the facts of this case present a
    genuine issue of material fact. Again, we disagree.
    Defendants present no evidence that there is an issue of
    material    fact.   Instead,      Defendants     contend      that    the   parties
    share differing views of the meaning of certain terms in the
    agreement and attempt to characterize those differences as an
    issue of fact. This is incorrect. The meaning of the terms of a
    -22-
    contract is an issue of law, not fact. See, e.g., Harris v. Ray
    Johnson Constr. Co., 
    139 N.C. App. 827
    , 829, 
    534 S.E.2d 653
    , 654
    (2000) (“Here, the issue is a matter of contract interpretation,
    and   hence,    a   question    of   law.”).        Accordingly,   Defendants’
    argument   is   overruled,     and   the    trial    court’s   order   granting
    partial summary judgment is affirmed.1
    AFFIRMED.
    Judges STROUD and MCCULLOUGH concur.
    Report per Rule 30(e).
    1
    Because we affirm the trial court’s order granting partial
    summary judgment, we need not address Plaintiffs’ alternative
    argument that Defendants are estopped from asserting that the
    restrictive covenants are unenforceable.