June 8, 2021

Noncompete agreements and the practice of law.

At issue  is a law firm's employment agreement that prohibits a former associate attorney from engaging in any business that conducts the same or similar business as plaintiff for a period of 36 months, within 90 miles of New York City or in the Israeli community. The agreement also purports to prohibit the defendant attorney from directly or indirectly soliciting any business from customers or clients of plaintiff for a period of 36 months within 90 miles of New York City or in the Israeli community; or advertise on Israeli/Hebrew websites, TV or newspaper ads.

Rule 5.6(a)(1) of the Rules of Professional Conduct, codified as 22 NYCRR 1200.0, bars lawyers from "participat[ing] in offering or making a partnership, shareholder, operating, employment, or other similar type of agreement that restricts the right of a lawyer to practice after termination of the relationship." To the extent the noncompete provision seeks to prevent the defendant attorney from "conducting business activities that are the same or similar to those of [plaintiff]" within 90 miles of New York City or in the Israeli community, it is void and unenforceable. The solicitation of the firm's clients, however, is actionable.

Feiner & Lavy, P.C. v. Zohar, NY Slip Op 03407 (1st Dep't June 1, 2021)

Here is the decision.