BDO Seidman v. Hirshberg
Court of Appeals of New York
690 N.Y.S.2d 854 (1999)
Mr. Hirshberg (defendant) worked for BDO Seidman, (BDO) (plaintiff) an accounting firm, from 1984 to 1993 at BDO’s Buffalo office. In 1989, Hirshberg was promoted to manager and required to sign a “Manager’s Agreement” that contained a provision that prevented Hirshberg from serving any former client of BDO’s Buffalo office for 18 months upon Hirshberg’s termination. Hirshberg resigned in 1993. In 1995, BDO sued Hirshberg and presented the court with a list of BDO clients that Hirshberg had stolen in violation of the covenant in Hirshberg’s “Manager’s Agreement.” The Supreme Court granted Hirshberg’s motion for summary judgment stating that restrictive covenant was unreasonable and unenforceable. The Appellate Division affirmed the decision of the Supreme Court. BDO appealed.
Rule of Law
Holding and Reasoning (Levine, J.)