Suffolk Anesthesiology Assocs., P.C. v. Verdone

In Suffolk Anesthesiology Assocs., P.C. v. Verdone (Sup Ct, Suffolk County, Sept. 28, 2009, Gazillo, J., Index No. 37932/08, affd 74 AD3d 953, 903 N.Y.S.2d 91), SAA sought to enforce the restrictive covenant against one of them, the defendant Matthew Verdone. SAA moved for a preliminary injunction, and both sides moved for partial summary judgment. The Court (Gazillo, J.) denied the motion and cross-motion for partial summary judgment, but granted the preliminary injunction and enjoined Dr. Verdone from practicing anesthesiology within 20 miles of St. Catherine's. The court found that SAA had shown a likelihood of success on the merits, noting that covenants restricting professionals, and physicians in particular, from competing with their former employers are common and generally enforceable as long as they are reasonable as to time and area, necessary to protect legitimate interests, not harmful to the public, and not unduly burdensome (Id. at 5). The Appellate Division affirmed, finding that SAA had met its prima facie burden of establishing, inter alia, that the restraints sought were reasonably limited, that they were neither harmful to the public nor unduly burdensome, and that they served an acceptable purpose.