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Legal Memorandum: Enforcement of a Non-solicitation Agreement

Issue: Whether a nonsolicitation agreement entered into by an employee in the real estate management industry is binding and enforceable as a matter of New York state law.

Area of Law: Business Organizations & Contracts, Real Estate Law
Keywords: Non-solicitation agreement; Enforceability; Real estate management industry
Jurisdiction: New York
Cited Cases: 588 N.Y.S.2d 842; 243 A.D.2d 680; 353 N.E.2d 590; 602 N.Y.S.2d 468; 40 N.Y.2d 303; 197 A.D.2d 856; 754 N.Y.S.2d 62; 299 A.D.2d 190; 186 A.D.2d 401; 459 N.Y.S.2d 454; 182 A.D.2d 351; 663 N.Y.S.2d 865; 110 A.D.2d 745; 301 A.D. 2d 734
Cited Statutes: None
Date: 07/01/2008

It does not appear that the enforceability of such an agreement is determined as a matter of law in New York.  Rather, as the cases that follow demonstrate, the enforceability of such a contract must be determined by the facts presented.

Investor Access Corp. v. Doremus & Co., 186 A.D.2d 401, 588 N.Y.S.2d 842 (1st Dep’t 1992).

Reed, Roberts Assoc., Inc. v. Strauman, 40 N.Y.2d 303, 353 N.E.2d 590 (1976).

H & R Recruiters, Inc. v. Kirkpatrick, 243 A.D.2d 680; 663 N.Y.S.2d 865 (2d Dep’t. 1997).

Marietta Corp. v. Fairhurst, 301 A.D. 2d 734, 754 N.Y.S.2d 62 (3d Dep’t 2003).

U.S. Transp. Sys., Inc. v. Marc 1 of N.Y., Inc., 210 A.D.2d 316, 619 N.Y.S.2d 764 (2d Dep’t 1994).

Family Affair Haircutters, Inc. v. Detling, 110 A.D.2d 745, 488 N.Y.S.2d 204 (2d Dep’t 1985).

Buhler v. Michael P. Maloney Consulting, Inc., 299 A.D.2d 190, 749 N.Y.S.2d 867 (1st Dep’t 2002).

Contemp Comm., Inc. v. MJM Creative Servs., 182 A.D.2d 351, 582 N.Y.S.2d 667  (1st Dep’t 1992)

Ken J. Pezrow Corp. v. Seifert, 197 A.D.2d 856, 602 N.Y.S.2d 468 (4th Dep’t 1993).

Greenwich Mills Co., Inc. v. Barrie House Coffee Co., Inc., 91 A.D.2d 398, 459 N.Y.S.2d 454 (2d Dep’t 1983).