October 24, 2014

P&N Trade Secrets Update: Restrictive Covenants

Supreme Nassau Commercial Division denied an application for a preliminary injunction filed by a staffing agency against a former employee who had signed a one-year, 50-mile restrictive covenant agreement. The employee stated that they did not take any trade secrets with them to a competitor and the customer list had been made public in the employer's bankruptcy filing. Significantly, the Court concluded that it was not bound by the language in the Agreement which stated that disclosure of the Confidential Information in violation of the Agreement would cause serious and irreparable harm to the employer, and must make an independent determination of that issue.

The full decision is found at the following link: http://www.courts.state.ny.us/reporter/pdfs/2012/2012_33683.pdf

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