A medical group, an employed physician and the physician’s new group wound up in court arguing about restrictive covenants in an employment contract. The old group asked the court to stop the doctor from violating the restrictions, and to order the new group not to interfere, while the lawsuit progressed.
The Appellate Division, First Department, said the old employer was not entitled to the preliminary injunction. The court said that non-compete clauses will not be enforced against individual doctors unless it is necessary for the protection against misappropriation of the employer’s trade secrets or of confidential customer lists, or protection from competition by a former employee whose services are unique or extraordinary.
While the doctor was probably happy to hear that the court would not stop her from working for the new practice, the court based it decision on a finding that her ob/gyn services were not so unique or extraordinary as to give her an unfair advantage.
Harris v. Patients Med, P.C. (Feb 7, 2019).