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BDO SEIDMAN v. HIRSHBERG

Court of Appeals of the State of New York (1999) | 93 N.Y.2d 382; 712 N.E.2d 1220; 690 N.Y.S.2d 854

4 min read

TL;DR: An accounting firm sued a former employee to enforce a reimbursement clause for serving firm clients. The court found the clause overbroad but, instead of voiding it, partially enforced it to protect the firm's legitimate interests, remanding on the issue of liquidated damages.

Legal Significance: Establishes that New York courts will partially enforce overbroad employee restrictive covenants if the employer acted in good faith. It narrowly defines an employer's legitimate protectable interest as client relationships cultivated through the employer's resources, not the entire client base or the employee's personal clients.