X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
[Photo Credit: Arenacreative/iStockphoto.com.]
In an action pending in the Nassau County Commercial Division in New York, the Supreme Court vacated an order barring Catherine Scalia, a client of Ken Novikoff and Scott Green of Rivkin Radlerfrom working for TrueCar, an alleged competitor of her former employee, Cox Automotive. The court also denied Cox’s motion for a preliminary injunctive relief seeking to extend the restraint on her ability to work for TrueCar for one year. The case presented a novel issue in New York concerning the ability of a successor corporation to enforce an otherwise lawful noncompete containing a valid assignment clause (running to the benefit of the successor corporation).  Scalia resigned from her employment with Cox, who immediately sought to enforce the noncompete agreement. However, Scalia signed the noncompete while working for another company that was acquired by Cox. Cox claimed that, due to the assignment clause, it could enforce the noncompete as it was transferred to them upon the acquisition.  On Scalia’s behalf, Novikoff and Green persuaded the court that Scalia had in fact already complied with the terms of the one-year post-employment restrictions because the restricted period began to run at the time Scalia’s employment with the acquired company ended and not, as Cox argued, at the time of her resignation from Cox.

Choate Hall & Stewart in Boston represented client Calero Software, LLC, a portfolio company of Riverside Partners, in closing two add-on acquisitions since being backed by Riverside Partners four months ago.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at customercare@alm.com

Jonathan Erway

 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2018 ALM Media Properties, LLC. All Rights Reserved.