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Krause v. Gelman

Appellate Division of the Supreme Court of New York, First Department
Mar 5, 1992
181 A.D.2d 424 (N.Y. App. Div. 1992)

Summary

finding action for an accounting based on diversion of business while the defendant was employed by the plaintiff was adequately pleaded

Summary of this case from Von Rohr Equip. Corp. v. Tanner Bolt & Nut Corp.

Opinion

March 5, 1992

Appeal from the New York County (Carol H. Arber, J.).


The issue of the sufficiency of plaintiffs' pleadings has previously been before this court (Krause Krause v Gelman, 167 A.D.2d 299). Plaintiffs have adequately stated a basis for an accounting against defendant, a former employee who is accused of diverting plaintiffs' business. An employee may not act in a manner which is inconsistent with his or her agency or trust and is bound to exercise the "utmost good faith and loyalty" in the performance of his or her duties. Such being the case, the employee or agent may be held to account to the principal or employer for any secret profits, and may also forfeit his or her right to compensation for services rendered in the event the employee proves to be disloyal (Gassman Gassman v Salzman, 112 A.D.2d 82, 83-84). The complaint sufficiently pleads defendant's purported disloyalty. Accordingly, the imposition of fees as a sanction is vacated.

Concur — Murphy, P.J., Carro, Wallach, Ross and Smith, JJ.


Summaries of

Krause v. Gelman

Appellate Division of the Supreme Court of New York, First Department
Mar 5, 1992
181 A.D.2d 424 (N.Y. App. Div. 1992)

finding action for an accounting based on diversion of business while the defendant was employed by the plaintiff was adequately pleaded

Summary of this case from Von Rohr Equip. Corp. v. Tanner Bolt & Nut Corp.
Case details for

Krause v. Gelman

Case Details

Full title:GENI S. KRAUSE et al., Appellants, v. MARCIA L. GELMAN et al., Respondents

Court:Appellate Division of the Supreme Court of New York, First Department

Date published: Mar 5, 1992

Citations

181 A.D.2d 424 (N.Y. App. Div. 1992)

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