Falco v. Parry

Decision Date30 April 2004
Docket NumberCA 03-01934.
Citation6 A.D.3d 1138,775 N.Y.S.2d 675,2004 NY Slip Op 03329
PartiesJAMES FALCO et al., Appellants, v. CURT PARRY et al., Respondents.
CourtNew York Supreme Court — Appellate Division

Appeal from an order of the Supreme Court, Onondaga County (Charles T. Major, J.), entered July 2, 2003. The order granted the motion of defendants Curt Parry and Fitness 121, LLC for summary judgment dismissing the complaint against them and that part of the motion of defendant Karen Valentine for summary judgment dismissing the complaint against her.

It is hereby ordered that the order so appealed from be and the same hereby is unanimously affirmed with costs.

Memorandum:

Plaintiffs, J & M Falco, LLC, a fitness club, and James Falco, its managing member, commenced this action to recover damages arising, inter alia, from the alleged misappropriation of plaintiffs' client list by plaintiffs' former employees, defendants Curt Parry and Karen Valentine, and the use of plaintiffs' client list in a competing business, defendant Fitness 121, LLC (Fitness 121). Supreme Court properly granted the motion of Parry and Fitness 121 seeking summary judgment dismissing the complaint against them and that part of the motion of Valentine seeking summary judgment dismissing the complaint against her as well. "It is well established that in the absence of a restrictive covenant not to compete, `an employee is free to compete with his or her former employer unless trade secrets are involved or fraudulent methods are employed'" (NCN Co. v Cavanagh, 215 AD2d 737, 737 [1995], quoting Walter Karl, Inc. v Wood, 137 AD2d 22, 27 [1988]). Defendants established that plaintiffs' client list is readily ascertainable from nonconfidential sources outside plaintiffs' business, and thus the client list is not entitled to trade secret protection (see Starlight Limousine Serv. v Cucinella, 275 AD2d 704, 705 [2000]; Comcast Sound Communications v Hoeltke, 174 AD2d 1023, 1024 [1991], lv dismissed 79 NY2d 915 [1992]). Defendants further established that they engaged in no wrongful conduct such as physically taking or copying plaintiffs' files, and the use of information concerning plaintiffs' clients that is "based on casual memory ... is not actionable" (Arnold K. Davis & Co. v Ludemann, 160 AD2d 614, 615 [1990]; see Levine v Bochner, 132 AD2d 532, 532-533 [1987]). In opposition to the motion, plaintiffs failed to raise a triable issue of fact whether...

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3 cases
  • First Mfg. Co. v. Young
    • United States
    • New York Supreme Court
    • November 3, 2014
    ...v. Burns, 84 A.D.2d 878, supra; Pearlgreen Corp v. Yau Chi Chu, 8 AD3d 460, 778 N.Y.S.2d 516 [2d Dept 2004] ; Falco v. Parry, 6 AD3d 1138, 775 N.Y.S.2d 675 [2d Dept 2004] ). However, a former employee is not entitled to solicit customers by fraudulent means, the use of trade secrets or conf......
  • Photonics Indus. Int'l, Inc. v. Xiaojie Zhao
    • United States
    • New York Supreme Court — Appellate Division
    • July 29, 2020
    ...can be obtained with little effort from nonconfidential sources, or is based on casual memory, it is not actionable (see Falco v. Parry, 6 A.D.3d 1138, 775 N.Y.S.2d 675 ). The plaintiff failed to raise a triable issue of fact as to whether its customer list was in fact a trade secret (see S......
  • Beverage Marketing USA, Inc. v. South Beach Beverage Company, Inc., 2007 NY Slip Op 33444(U) (N.Y. Sup. Ct. 10/22/2007)
    • United States
    • New York Supreme Court
    • October 22, 2007
    ...information, and not generally to other trade secrets. See, e.g., Leo Silfen, Inc. v. Cream, 29 N.Y. 2d 387 (1972); Falco v. Parry, 6 A.D. 3d 1138 (4th Dept. 2004); Zurich Depository Corp. v. Gilenson, 121 A.D. 2d 443 (2nd Dept. 1986); and Arnold K. Davis & Co., v. Ludemann, 160 A.D. 2d 614......

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