New York Court of Appeals

BDO Seidman, Appellant v. Jeffrey Hirshberg, Respondent

May 13, 199993 N.Y.2d 382

Summary

The New York Court of Appeals held that the Manager's Agreement's reimbursement clause is enforceable only to the extent it protects BDO's legitimate interest in clients with whom the former employee had a direct substantive accounting relationship, severing overbroad portions; it affirmed partial summary judgment and remanded for determination of liquidated damages, applying the three‑pronged reasonableness test.