Duane Jones Co. v. Burke

In Duane Jones Co. v. Burke, 306 NY 172 the Court of Appeals considered a claim that Burke, an officer of a third party company, had conspired with a disloyal employee to destroy the plaintiff's business. There the defendants appropriated overnight upwards of 50% of the business of their previous employer, and 90% of its skilled employees as well as a majority of the entire working force. While Duane Jones did not establish any fixed standards for measuring the breach of duty by an employee which would be sufficient to invoke a legal remedy, the Court found, after close analysis of its particular facts, that the jury was justified in concluding that defendants' conduct "fell below the standard required by the law of one acting as an agent or employee of another" (Duane Jones v. Burke, supra at 187); that defendants had 'while employees of the corporation, determined upon a course of conduct which, when subsequently carried out, resulted in benefit to themselves through destruction of plaintiff's business, in violation of the fiduciary duties of good faith and fair dealing imposed on defendants by their close relationship with plaintiff corporation' (Id. at 189).