The enforceability of post-employment restrictions on competition typically turns on whether there are trade secrets or confidential customer information at risk. The Second Circuit's recent Ticor decision is significant because the court enforced a non-compete covenant on the grounds that the departing employee, a title insurance salesman, had significant client relationships and, therefore, was "unique" -- irrespective of whether trade secrets or confidential information were at risk.
June 04, 1999 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Nearly everyone would agree with the Second Circuit that Beethoven, Einstein, and Michelangelo were each “unique” in their own right and that “nature made them and then broke the mold.” But how many would agree with the court that a title insurance salesman could be unique?
This is precisely what the Second Circuit recently held in Ticor Title Ins. Co. v. Cohen, [FOOTNOTE 1]in the context of determining the enforceability of a post-employment non-compete covenant.
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