Sutherland Global Servs., Inc. v Stuewe
2010 NY Slip Op 04020 [73 AD3d 1473]
May 7, 2010
Appellate Division, Fourth Department
As corrected through Wednesday, June 30, 2010


Sutherland Global Services, Inc., Respondent, v Thomas Stuewe,Appellant.

[*1]Modica & Associates, Attorneys, PLLC, Rochester (Steven V. Modica of counsel), fordefendant-appellant.

Woods Oviatt Gilman LLP, Rochester (Warren B. Rosenbaum of counsel), forplaintiff-respondent.

Appeal from an order of the Supreme Court, Monroe County (Kenneth R. Fisher, J.), enteredNovember 5, 2009. The order granted plaintiff's motion for a preliminary injunction.

It is hereby ordered that the order so appealed from is unanimously reversed on the lawwithout costs, the motion is denied and the preliminary injunction is vacated.

Memorandum: Plaintiff commenced this action seeking to enforce the restrictive covenantscontained in a "Non-Competition and Non-Solicitation Agreement" (Agreement) that defendantsigned while he was employed by plaintiff. Defendant appeals from an order granting the motionof plaintiff seeking a preliminary injunction enjoining defendant from, inter alia, acceptingemployment from plaintiff's alleged competitors.

We agree with defendant that Supreme Court abused its discretion in issuing the preliminaryinjunction. "Preliminary injunctive relief is a drastic remedy [that] is not routinely granted"(Marietta Corp. v Fairhurst, 301 AD2d 734, 736 [2003]; see Peterson v Corbin,275 AD2d 35, 37 [2000], appeal dismissed 95 NY2d 919 [2000]; Cool InsuringAgency v Rogers, 125 AD2d 758, 759 [1986], appeal dismissed 69 NY2d 1037[1987]). "In order to establish its entitlement to a preliminary injunction, the party seeking theinjunction must establish, by clear and convincing evidence . . . , three separateelements[, including,] . . . '. . . a likelihood of ultimate success on themerits' " (Destiny USA Holdings, LLCv Citigroup Global Mkts. Realty Corp., 69 AD3d 212, 216 [2009], quoting Doe vAxelrod, 73 NY2d 748, 750 [1988]; see Aetna Ins. Co. v Capasso, 75 NY2d 860,862 [1990]; J. A. Preston Corp. v Fabrication Enters., 68 NY2d 397, 406 [1986]).

Here, we agree with defendant that plaintiff failed to demonstrate by clear and convincingevidence that the Agreement was enforceable and thus that there was a likelihood of success onthe merits. "While restrictive covenants tending to prevent an employee from pursuing a similarvocation after termination of employment are, as a general rule, disfavored by the courts, theywill be enforced if [*2]they are[, inter alia,] . . .necessary to protect the employer's legitimate interests" (Asness v Nelson, 273 AD2d165 [2000]; see BDO Seidman v Hirshberg, 93 NY2d 382, 388-389 [1999];Columbia Ribbon & Carbon Mfg. Co. v A-1-A Corp., 42 NY2d 496, 499 [1977]). Weagree with defendant that plaintiff failed to demonstrate the need for an injunction to protect itslegitimate interests, which are "limited to the protection of [its] trade secrets or confidentialcustomer lists, or protection from an employee whose services are unique or extraordinary" (Riedman Corp. v Gallager, 48 AD3d1188, 1189 [2008]; see BDO Seidman, 93 NY2d at 389; Reed, Roberts Assoc. vStrauman, 40 NY2d 303, 308 [1976], rearg denied 40 NY2d 918 [1976]). Wetherefore reverse the order, deny the motion and vacate the preliminary injunction.Present—Smith, J.P., Carni, Sconiers and Pine, JJ.


NYPTI Decisions © 2026 is a project of New York Prosecutors Training Institute (NYPTI) made possible by leveraging the work we've done providing online research and tools to prosecutors.

NYPTI would like to thank New York State Division of Criminal Justice Services, New York State Senate's Open Legislation Project, New York State Unified Court System, New York State Law Reporting Bureau and Free Law Project for their invaluable assistance making this project possible.

Install the free RECAP extensions to help contribute to this archive. See https://free.law/recap/ for more information.