Banker Sued Over Non-Compete Clause for Involvement in New York Bank
Posted on Jan 01, 2016
Capital One Financial Corp is crying foul years after one of its former top bankers moved to a smaller corporation. John Kanas is being sued for breach of contract by the financial company where he was previously head of banking until he resigned in 2007.
Kanas agreed to a non-compete clause when he began working for the Virginia-based credit card company. This non-compete agreement states that he could not work with a company that could be seen as competition for Capital One Financial after he left the company. The clause covered a multi-state area in the northeast, including New York and Virginia, for an unspecified amount of time.
Capital One says that they parted ways amicably with Kanas, accepting his resignation after he earned a multi-million dollar compensation package. Kanas is now the chief executive of BankUnited, Inc., which operates out of Florida—technically out of the reach of the non-compete clause.
However, the lawsuit was brought on by Capital One Financial in 2011, four years after Kanas left the organization, after BankUnited, Inc. purchased the small New York-based lending firm Herald National Bank.
Even though BankUnited, Inc. is based quite far from New York, pulling profits in from a bank which is operating in the same business area as Capital One may violate the non-compete agreement that Kanas accepted while working with the Virginia-based company.
Capital One Financial Corp is also naming John Bohlsen in the suit. Bohlsen was in charge of the commercial banking business for Capital One and is now the vice chairman and chief lending officer for BankUnited Inc.
If you have questions about your non-compete agreement, contact a New York non-compete lawyer for a free consultation.