1/20/14

Town & Country House & Home Service vs. Newbery

Date:
October 10, 1957

Court:
Court of Appeals of New York

Location:
Nassau County, NY

Parties:
- Plaintiff: Town & Country House & Home Service (former employer)
- Defendant: Newbery(former employees)

Facts:
- Defendants were employed by Plaintiff for a period of 3 years
- Defendants severed relationship to start their own company
- Defendants were exposed to trade secrets during their time of employment with Plaintiff
- Defendants solicited only the plaintiff’s customers; they were not equally available.
- With the exception of a ‘customers list’, no secrets were involved
- Defendants only met to discuss new venture outside of business hours
- Defendants employment was ‘at will’; no prior notice of resignation is legally required

Issue:
Were the defendants acting under principles of ‘unfair competition’?

Summary of Arguments:
Plaintiff:
Argues that his business model was “unique, personal, and confidential”; and that the defendants breached the confidentiality agreement in order to use the plaintiffs trade secrets for their own gain. The defendants had conspired to form a business of their own and solicit customers from the plaintiff, all while still under the plaintiffs employ.

Defendants:
Argue that the the business was not unique and could be done by others; and that the defendants customers were obtained solely through their own means away from business hours