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Fewer v. GFI Grp. Inc. et al., 124 A.D.3d 457, 2015 WL 176227 (First Dept. Jan. 15, 2015)

Articles Discussing Case:

New York Court Refuses to Enforce Agreement's Covenant Not to Compete Where Employer Breached the Agreement First

FordHarrison LLP • February 20, 2015
Executive Summary: The right to enforce a covenant not to compete may be lost when the employer first violates the terms of the same agreement, says a New York appeals court. In Fewer v. GFI Grp. Inc. et al., 124 A.D.3d 457, 2015 WL 176227 (First Dep't. Jan. 15, 2015), the Appellate Division covering New York County rejected GFI's attempt to enforce the covenant not to compete contained in the employment agreement of former derivatives desk president Donald Fewer because GFI breached the terms of the same agreement by demoting Fewer before he resigned. That breach also cost GFI the chance use the "employee choice" doctrine as an independent basis for enforcement of its non-compete provision.