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Is New York the Right Venue for Your Breach of Non-Compete Claim?


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1/1/2016
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With today’s technology, businesses are able to extend their reach with consumers, employees, and vendors across many borders. This is especially true with online companies whose reach may be across the globe. When pursuing a breach of non-compete in New York involving such a company, how do you know where to bring your lawsuit? A knowledgeable New York business litigation attorney can analyze the facts and circumstances surrounding your claim and help you to identify the best location for filing suit.

A recent New York lawsuit highlights a similar issue. Popular online photo album companies Shutterfly and Kodak entered into a non-compete agreement. Shutterfly filed suit against Kodak for breaching the agreement, accusing the company of offering a free app that allows users to turn their Facebook photos into albums. Shutterfly argues that the app violates the terms of the non-compete.

For Shutterfly to bring its claim in New York, it has to demonstrate that Kodak has a substantial nexus within the state. The court would consider the following factors:

  • The burden on the New York courts.
  • The potential hardship, if any, to Kodak.
  • The unavailability of a different forum.
  • The principal place of business of the company.
  • The location of the events that gave rise to the non-compete agreement and breach.

To bring a breach of contract action in New York, a party needs to bring the claim based upon more than just a passing connection to New York. An experienced New York business litigation lawyer can assist you in finding the best venue for your matter. Call our office today at (888) 497-3410 for a free consultation.



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