Ticor Title Insurance Co. v. Cohen

In 1981, as a recent college graduate, Kenneth Cohen (defendant) began working as a sales employee for Ticor Title Insurance Co. (Ticor) (plaintiff). Ticor sold title insurance for high-dollar New York properties in transactions handled mostly by real estate lawyers. Over the years, Cohen developed strong personal relationships with real estate attorneys at large New York firms. Cohen became a senior vice president of sales at Ticor, in charge of several major accounts. Cohen was known for his knowledge, professionalism, and productivity. In 1995, Ticor and Cohen entered a years-long employment contract containing a covenant not to compete. The covenant prevented Cohen from working for any competitor in New York for a six-month period following Cohen’s termination. The contract expressly stated that Ticor’s willingness to employ Cohen was dependent on Cohen’s willingness to accept the noncompete provision. In 1997, Cohen’s total compensation exceeded $1.1 million, and he was one of the highest paid salesmen at Ticor. In 1998, Cohen agreed to work for a direct competitor of Ticor named TitleServ. Cohen had negotiated a provision with TitleServ under which TitleServ would pay Cohen a six-month salary in the event that Ticor enforced Cohen’s covenant not to compete. Cohen’s contract with TitleServ entitled him to a higher compensation than he had earned at Ticor and a $2 million signing bonus. Ticor sued Cohen seeking an injunction to enforce the covenant not to compete. The trial court granted an injunction enjoining Cohen from working in the title-insurance business for six months. Cohen appealed.