Court Denies Temporary Restraining Order As Overbroad And Inconsistent With The Non-Compete And Non-Solicitation Agreement At Issue

Posted: March 20, 2026 / Written by: Jeffrey M. Eilender, Thomas A. Kissane, Samuel L. Butt, Joshua Wurtzel, Channing J. Turner / Category Preliminary Injunction

Court Denies Temporary Restraining Order As Overbroad And Inconsistent With The Non-Compete And Non-Solicitation Agreement At Issue

On December 17, 2025, Justice Andrew Borrok denied a motion for temporary restraining order and preliminary injunction, which would have restricted defendants from engaging in conduct that allegedly competed with the plaintiff’s business, because the relief sought was much broader than the restrictive covenants in the agreement underlying the case. In Clear Street LLC, et al., v. Hidden Road Partners LP, et al., Index No. 65635/2025, the Court noted that the parties had only bargained for certain non-compete and non-solicitation restrictions during limited periods of time. An injunction that remained in place during the whole pendency of the action would contradict these limitations. Moreover, the Court found that the restrictive covenants in the agreement were with a different company than the company that the movants now sought to protect. It explained:

The relief sought is plainly overbroad. As an initial matter, the parties only bargained for the non-compete and non-solicitation periods at issue for discrete periods of time such that the duration of the requested injunction is inconsistent with the parties’ express agreement. They are also not entitled to an injunction that would effectively prevent the Defendants from engaging in the SWAP dealer business without geographical limitation or for a time which exceeds that for which they bargained.

The attorneys at Schlam Stone & Dolan have extensive experience with employment agreements, non-compete, non-solicitation, and other restrictive covenants. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.