Legal Memorandum: Damages for Breach of a Non-compete Agreement

Issue: Under New York law, what damages are available for breach of a non-compete agreement?

An employer who is able to prove breach of a valid non-compete agreement is only entitled to damages for its actual loss.  See Novendstern v. Mt. Kiscon Med. Group, 177 A.D.2d 623, 576 N.Y.S.2d 329, 331 (2d Dep’t 1991).  See also Columbia Ribbon & Carbon Mfg. Co. v. A-1-A Corp., 42 N.Y.2d 496, 500, 369 N.E.2d 4, 7, 398 N.Y.S.2d 1004, 1007 (1977) (plaintiff did not prove that secret information was disclosed, or that former employee performed anything more than commonplace services, or any loss of business, loss of customers or other damage).

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