Serving Businesses Since 1992
picture of a modern building

Won Dismissal of Lawsuit Against Employee and His New Employer Finding Restrictive Covenant Invalid

Rosenberg Fortuna & Laitman, LLP, led by partner John A. Fortuna, Esq., won the summary dismissal of an action commenced against a former salesperson and his new employer which alleged that such employee was in breach of the restrictive covenants contained in his employment agreement.

The salesperson, had worked for his former employer since 1990 as a plumbing supply sales representative. In 2000, such employer demanded that its salesperson sign an employment agreement which contained broad prohibitions against employment with any competing business for a period of one (1) year from the date of his cessation of employment with the plaintiff. The salesperson eventually left the employ of the plaintiff and shortly thereafter was employed by the nation's largest distributor of plumbing supplies, pipe valves and fittings. The plaintff then commenced an action against the salesperson and his new employer and simultaneously moved for a preliminary injunction to enjoin the employee's continued employment with the new employer. On behalf of the salesperson and the nation's largest distributor, Rosenberg Fortuna & Laitman, LLP, cross-moved for the dismissal of the action.

The firm argued that the restrictions were unenforceable and were no more than a bald restriction on competition. The Commercial Division in Suffolk County agreed and dismissed the action in its entirety finding that the restrictions were far too broad and thus unenforceable.