BDO Seidman Continues To Rule NY Restrictive Covenants

Law360, New York (July 18, 2014, 12:37 PM EDT) -- There is a tendency for lawyers to draft employment agreements containing restrictive covenants as if they are writing on a tabula rasa.[1] In New York, they are not: the Court of Appeals seminal 1999 case BDO Seidman v. Hirshberg explains what is a reasonable restrictive covenant. Although draconian restrictive covenants may have the desired in terrorem effect, many of them will not be judicially enforceable.[2] This note will discuss BDO, Ticor Title Ins. Co. v. Cohen, 173 F.3d 63 (2d Cir. 1999), decided by the Second Circuit within weeks of BDO, and several recent cases and the related, also disfavored doctrines of misappropriation of trade secrets and inevitable disclosure under New York law....

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