Legal Question in Business Law in New York
Can NYS Court issue injunction in CT, MA
We hired a sales rep and are now being sued by his former company who claims he stole a laptop with trade secrets. We deny. He has a noncompete clause limited to his old territory, which is in NY. They are asking a NYS Court to restrain us from employing him not only in NY, but also in CT, MA and NJ. Although our principal office is in NY, isn't it outside the NYS Ct's jurisdiction to impose restrictions on us/our employee in the other states?
2 Answers from Attorneys
Re: Can NYS Court issue injunction in CT, MA
Trade secrets are trade seecrets and the damage caysed can exist outside NY.
The contract limits his activities in the state but if the theft of the tradde secrets is proven the effect exists without the state.
You have a short statutory time within which to answer the complaint. Time is of the essence an the use of an attorney appears imperative.
Feel free to contact this office for a limited phone consult.
Good Luck.
RRG
Re: Can NYS Court issue injunction in CT, MA
If your headquarters is in or if you have operations in New York, and if you are being sued in a New York court, the New York court will have clear jurisdiction to issue an injunction against your company, even if the act being enjoined would take place outside the borders of New York. It's not at all uncommon for the courts of New York to issue such orders.
I'm guessing from your question that you have, through a licensed attorney, already answered the other company's complaint or order to show cause - but if you have not, you should be aware of the limited amount of time you have to respond, and should consult an attorney immediately.
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