Opinion
March 8, 1950.
Appeal from Supreme Court.
Present — Foster, P.J., Heffernan, Brewster, Bergan and Coon, JJ.
These defendants were employees of the plaintiff corporation which was engaged in conducting an employment agency in the city of Albany. Prior to the formation of the corporation an agreement was entered into by the parties to the litigation providing that if any of the parties withdrew from the employment of the corporation the party or parties withdrawing would not engage in an employment business in the counties of Albany, Rensselaer, Columbia, Greene, Schoharie, Saratoga, Schenectady, Warren or counties adjacent thereto during the remainder of their lives. The Special Term denied plaintiffs' application principally on the ground that the negative covenant is valuable only to protect trade secrets and is unavailable to stifle competition. There are no trade secrets in plaintiffs' business and no evidence that defendants have been guilty of any breach of confidence. Order of the Special Term unanimously affirmed, with $10 costs and disbursements.