Elite Promotional Mktg., Inc. v. Stumacher, 8 A.D.3d 525 (N.Y. App. Div. 2d Dep't 2004). · Go Syfert
Elite Promotional Mktg., Inc. v. Stumacher, 8 A.D.3d 525 (N.Y. App. Div. 2d Dep't 2004). Cases Citing This Book View Copy Cite
19 citation events (19 in the last 25 years) across 4 distinct courts.
Cited for
At page 526 Enforceability of restrictive covenants against competition7 citing cases“the restraint must be reasonable such that it 'is no greater than is required for the protection of the legitimate interest ' of the party seeking enforcement”1 citing court quotes it
  • New York Packaging II LLC v. Mustang Mktg. Grp. LLC, No. 2:21-cv-01629 (E.D.N.Y. Mar. 1, 2022). 2 cites
    “A covenant against competition must be construed strictly.”
  • Loughlin v. Meghji, 186 A.D.3d 1633 (N.Y. App. Div. 2d Dep't 2020).published 2 cites
    "The restraint must be reasonable such that it 'is no greater than is required for the protection of the legitimate interest' of the party seeking enforcement" ( Elite Promotional Mktg., Inc. v Stumacher , 8 AD3d at 526, quoting BDO Seidma…
  • McLaughlin v. Logan, 89 A.D.3d 809 (N.Y. App. Div. 2d Dep't 2011).published
    Am., 8 NY2d 430, 438 [1960]; Palmer v Palmer, 150 NY 139, 146 [1896]; Elite Promotional Mktg., Inc. v Stumacher, 8 AD3d 525, 526-527 [2004]; Nancy Neale Enters. v Eventful Enters., 260 AD2d 453 [1999]).
  • Grandis Fam. P'ship, Ltd. v. Hess Corp., 588 F. Supp. 2d 1319 (S.D. Fla. 2008).published 2 cites
    Stumacher, at 526, 779 N.Y.S.2d 528 ; Arciniaga, 460 F.3d at 237 .
  • Delfino Insulation Co. v. Jaworowski, 55 A.D.3d 654 (N.Y. App. Div. 2d Dep't 2008).published
    Co. v A-l-A Corp., 42 NY2d 496 [1977]; Trans-Continentail Credit & Collection Corp. v Foti, 270 AD2d 250 [2000]; see also Reed, Roberts Assoc. v Strauman, 40 NY2d 303 [1976]; Elite Promotional Mktg., Inc. v Stumacher, 8 AD3d 525, 526 [2004…
  • Nat. Organics, Inc. v. Kirkendall, 52 A.D.3d 488 (N.Y. App. Div. 2d Dep't 2008).published
    A noncompete agreement must also be reasonably limited temporally and geographically (id.; Elite Promotional Mktg., Inc. v Stumacher, 8 AD3d 525, 526 [2004]).
  • Arthur v. Orchestrate Bus. LLC, No. 1:24-cv-02985 (S.D.N.Y. Oct. 17, 2024).
    See, e.g., Elite Promotional Mktg., Inc. v. Stumacher, 8 A.D.3d 525, 526 (2d Dep’t 2004); Pure Power Boot Camp, Inc. v. Warrior Fitness Boot Camp, LLC, 813 F. Supp. 2d 489, 507 (S.D.N.Y. 2011); see also Defendants’ Motion to Dismiss, ECF N…
At page 527 and the agreement were parts of the same transaction and the parties were, for all practical purposes, the same entities, “there was clearly a manifest intent…2 citing casesopening of page *527 (no citing court says what it cites this page for)
  • R & G Brenner Income Tax Consultants v. Gilmartin, 233 A.D.3d 819 (N.Y. App. Div. 2d Dep't 2024).published
    The Supreme Court also should have denied those branches of the plaintiff's motion which were for summary judgment on the issue of liability on the causes of action alleging breach of contract and violation of the faithless servant doctrin…
  • Modica v. Topaz Enter., Inc., 147 A.D.3d 1041 (N.Y. App. Div. 2d Dep't 2017).published
    Inc., 143 AD3d 579, 579 [2016]; Dorfman v American Student Assistance, 104 AD3d 474, 474 [2013]; Elite Promotional Mktg., Inc. v Stumacher, 8 AD3d 525, 527 [2004]; De-Capua v Dine-A-Mate, Inc., 292 AD2d 489, 491 [2002]; First Frontier Pro…
779 N.Y.S.2d at 530 A covenant against competition must be construed strictly.1 citing case1 citing court put it this way
Retrieving the full opinion text from the archive…
Elite Promotional Marketing, Inc.
v.
Jan Stumacher, and Rhina International Direct, Inc., (Action No. 1.) Rhina International Direct, Inc. v. Howard Horowitz, (Action No. 2.)
Appellate Division of the Supreme Court of the State of New York.
Jun 21, 2004.
Published opinion
8 A.D.3d 525
2004 N.Y. App. Div. LEXIS 8700

In two related actions, inter alia, to recover damages for breach of contract, that were joined for trial, Rhina International Direct, Inc., appeals from a judgment of the Supreme Court, Nassau County (Austin, J), entered April 10, 2003, which, after a nonjury trial, is in favor of Credit Card Promotions, Inc., and against it in the principal sum of $305,933.

Ordered that the judgment is affirmed, with costs.

Credit Card Promotions, Inc. (hereinafter CCP), commenced action No. 1 to collect fees for services related to an agreement (hereinafter the GTE contract) with Rhina International Direct, Inc. (hereinafter Rhina), whereby CCP agreed to solicit credit card applications. The applications were solicited for nonparty GTE Credit Card Services, Inc. (hereinafter GTE), a credit card company which retained Rhina to conduct a marketing program.[*526] Rhina claimed that it was entitled to withhold payment of certain invoices payable under the GTE contract on the ground that CCP and its related entity, Elite Promotional Marketing, Inc. (hereinafter Elite), breached two separately-executed confidentiality/non-solicitation agreements (hereinafter collectively the agreement) executed by their principals, Howard Horowitz and Brett J. Whiton by, inter alia, soliciting work from another credit card company, Discover Card. Rhina commenced action No. 2, inter alia, to recover damages for breach of the agreement. The actions were joined for trial.

Contrary to Rhina’s contention, the Supreme Court applied the correct standard regarding the enforceability of restrictive covenants not to compete. A covenant against competition must be construed strictly and should not be extended beyond the literal meaning of its terms (see Gramercy Park Animal Ctr. v Novick, 41 NY2d 874 [1977]; Reed, Roberts Assoc. v Strauman, 40 NY2d 303, 307 [1976]). The restraint must be reasonable such that it “is no greater than is required for the protection of the legitimate interest” of the party seeking enforcement (BDO Seidman v Hirshberg, 93 NY2d 382, 388 [1999]). Legitimate interests are limited to “the protection against misappropriation of the employer’s trade secrets or of confidential customer lists, or protection from competition by a former employee whose services are unique or extraordinary” (BDO Seidman v Hirshberg, supra at 389). A restrictive covenant against competition must also be reasonably limited temporally and geographically (see American Para Professional Sys. v Examination Mgt. Servs., 214 AD2d 413 [1995]). The Supreme Court properly determined that the solicitation by the defendants in action No. 2 of Discover Card, with which Horowitz had a preexisting relationship, was not barred by the restrictive covenant in the agreement barring them from soliciting Rhina’s clients (see Reed, Roberts Assoc. v Strauman, supra).

There is also no merit to Rhina’s contention that the agreement and the GTE contract were separately enforceable contracts. “As a general rule, contracts remain separate unless their history and subject matter show them to be unified . . . The primary standard is the intent manifested, viewed in the surrounding circumstances . . . The nature of the obligation undertaken depends upon the parties’ intention, and where that intention may be gathered from the four corners of the instrument, interpretation of the contract is a question of law” (Nancy Neale Enters. v Eventful Enters., 260 AD2d 453 [1999]). The record shows that the GTE contract was conditioned on the execution of the agreement. Accordingly, since the GTE contract[*527] and the agreement were parts of the same transaction and the parties were, for all practical purposes, the same entities, “there was clearly a manifest intent on the part of the parties that the agreements should be read together” (Nancy Neale Enters. v Eventful Enters., supra at 453; see also Doldan v Fenner, 309 AD2d 1274 [2003]).

In addition, “[w]hen a party benefiting from a restrictive covenant in a contract breaches that contract, the covenant is not valid and enforceable against the other party because the benefiting party was responsible for the breach” (DeCapua v Dine-A-Mate, Inc., 292 AD2d 489, 491 [2002]). Thus, in light of Bhina’s initial breach of the GTE contract by refusing to pay the invoices payable thereunder to Horowitz, the Supreme Court also properly determined on this additional basis that the restrictive covenant was unenforceable by Rhina (see DeCapua v Dine-A-Mate, Inc., supra).

Rhina’s remaining contentions are without merit. Florio, J.P., Schmidt, Mastro and Rivera, JJ., concur.