Unfair Competition as a Cause of Action in New York

Unfair Competition

“To establish a cause of action for relief based on unfair competition, a plaintiff must demonstrate that the defendant wrongfully diverted the plaintiff’s business to itself. ( McKinnon Doxsee Agency, Inc. v. Gallina, 187 A.D.3d 733, 737, 132 N.Y.S.3d 144 [citations and internal quotation marks omitted]). . . . Unfair competition encompasses [t]he principle that one may not misappropriate the results of the skill, expenditures and labors of a competitor (McKinnon Doxsee Agency, Inc. v. Gallina, 187 A.D.3d at 738, 132 N.Y.S.3d 144, quoting Electrolux Corp. v. Val–Worth, Inc., 6 N.Y.2d 556, 567, 190 N.Y.S.2d 977, 161 N.E.2d 197 ).” Stuart’s, LLC v. Edelman, 152 N.Y.S.3d 472 (N.Y. App. Div. 2021).

Unfair Competition & Employment

“In the absence of a restrictive covenant, an employee may freely compete with a former employer unless trade secrets are involved or fraudulent methods are employed” (McKinnon Doxsee Agency, Inc. v. Gallina, 187 A.D.3d 733, 737, 132 N.Y.S.3d 144 [citations and internal quotation marks omitted]; see Baldeo v. Majeed, 150 A.D.3d 942, 944, 55 N.Y.S.3d 340 ; Pearlgreen Corp. v. Yau Chi Chu, 8 A.D.3d 460, 461, 778 N.Y.S.2d 516 ).” Stuart’s, LLC v. Edelman, 152 N.Y.S.3d 472 (N.Y. App. Div. 2021).