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Current Developments in the Commercial Divisions of the
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Posted: December 15, 2016

Irreparable Injury Presumed From Breach of Non-Compete Made In Connection With Sale of Business

On November 29, 2016, the First Department issued a decision in BDC Management Services, LLC v. Singer, 2016 NY Slip Op. 08006, affirming the grant of a preliminary injunction enforcing “non-competition and non-solicitation covenants,” explaining:

Defendants do not dispute that they agreed to non-competition and non-solicitation covenants in connection with the sale of their business and good will to plaintiffs and that they later acted in violation of those covenants. Irreparable injury is presumed from the breach of such restrictive covenants, since they are intended to protect the purchase of a business and the accompanying goodwill. In fact, the parties agreed in the sale agreement that a breach of the non-compete provision would cause irreparable injury and that injunctive relief would be appropriate in the event of such a breach.

(Internal citations omitted).

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