When NY Courts Will Enforce a Non-Compete – Even When the Employee Was Fired

Here’s the general rule in New York: if an employee is fired without cause, any non-compete agreement he or she signed will no longer be enforceable. And the reason for this is fairly straightforward – because once the employer is no longer keeping up their end of the contract, the employee shouldn’t be forced to [...]

Can Bankruptcy Immunize Company From Claims They Violated Non-Compete?

In a blog piece that was published in yesterday’s Wall Street Journal, it was reported that OfficeMax has sued A & P, the well-known supermarket chain, seeking a restraining order barring them from poaching key employees. Apparently, OfficeMax felt compelled to take this action after 3 of their key employees left, including their former chief [...]

How One U.S. Company Is Protecting Against The Piracy Of Its Proprietary Software

Two days ago, the New York Times reported on a lawsuit that was brought by California-based Cybersitter, claiming that two Chinese software companies had engaged in unfair competition, and misappropriated, or stolen, thousands of lines of the code contained in its proprietary software to develop Green Dam, a type of software designed to block users [...]

Can An Internet Service Provider Be Held Liable For Defamatory Statements Posted On Its Website Under New York Law?

In Shiamili v. Real Estate Group of NY, Inc., an opinion issued by New York’s Appellate Division, First Department (which covers both New York and Bronx Counties), answered this question with an unequivocal ‘no’ – the internet services provider (or “interactive computer service) cannot be held liable for defamation (or unfair competition) unless the internet [...]

Piercing the Corporate Veil – Critical Facts That You Will Need To Prove Your Case Under New York Law

The fact pattern is all too familiar:  D enters into a contract with small business P to jointly develop certain products, and then not only breaches the contract with P, but then breaches his fiduciary duty to P and uses the proprietary information that he gained during their alliance to try and poach P’s proprietary [...]

Identifying Whether You May Have A Breach of Contract Case Under New York Law

Over the last several years, I’ve been struck by the frustration people have expressed at poor service providers in a myriad of different contexts, ranging from coatroom attendants who lost their belongings to the non-functional central monitoring of house alarm systems and defective products. And I’ve also found that in most of these cases, the [...]

Employee Theft (& Dishonesty) Is Not Strictly A Byproduct Of The Economy

In a news story that broke on Friday, July 10, it was reported that 2 Ohio women were indicted on charges that they stole thousands – even hundreds of thousands – of dollars from their employers. And, apparently, neither of these women were compelled to steal from their employers out of economic desperation; they were both [...]

The Broader Implications of Trade Secret Theft

Trade secret theft is not just a civil monetary matter that is derived from a breach of fiduciary duty or unfair competition. It has criminal implications as well. In a story that was published earlier today, a former Goldman Sachs vice president was arrested by the FBI based upon this employee’s alleged trade secret theft, more particularly, claims that he stole Goldman’s [...]

(Another) Report Predicts That Employees’ Breach of Duty and Theft To Rise in Down Economy

I came across earlier this evening entitled “Report: Business Risk of Fraud, Corruption Up Amid Economic Crisis,” which, true to its title, squarely blames the global economic recession for an uptick in employee theft, corruption and dishonesty in the business environment. A careful reading of the article reveals that the holes in the argument advanced [...]

How Revealing Your Well-Prepared Hand Can Sometimes Yield The Best – And Fastest – Results In New York Business Litigation

I recently had an experience where an extremely costly commercial lawsuit about a claimed breach of contract and misappropriation of proprietary intellectual property by a fiduciary of a new york small business was avoided. Although I would like to say that the lawsuit was rendered completely moot, and averted entirely, to be completely candid, my efforts weren’t that successful; however,  they did have [...]