Summary
holding employee must lessen work or misuse employer secrets to constitute faithless servant
Summary of this case from Crowe v. Harvey Klinger, Inc.Opinion
Argued February 11, 1977
Decided March 24, 1977
Appeal from the Appellate Division of the Supreme Court in the First Judicial Department, BEATRICE SHAINSWIT, J.
Barrett G. Kreisberg for appellant.
Arnold J. Ross for respondent.
MEMORANDUM.
Order affirmed, with costs.
One who owes a duty of fidelity to a principal and who is faithless in the performance of his services is generally disentitled to recover his compensation, whether commissions or salary (Restatement, Agency 2d, § 469). Nor does it make any difference that the services were beneficial to the principal, or that the principal suffered no provable damage as a result of the breach of fidelity by the agent (see Wechsler v Bowman, 285 N.Y. 284, 291-292, remittitur amd 286 N.Y. 582; Lamdin v Broadway Surface Adv. Corp., 272 N.Y. 133, 138-139). Nevertheless, on the findings of fact in this case, meticulously detailed by the court at trial, and affirmed at the Appellate Division, plaintiff was not guilty of any breach of fidelity during the term of his employment or engagement (see opn [ 85 Misc.2d 994] by Madam Justice BEATRICE SHAINSWIT at Supreme Ct). That plaintiff during his employment planned and took preliminary steps to enter into a competitive business involved no breach of fidelity so long as, as the courts below found as a fact, plaintiff never lessened his work on behalf of defendant and never misappropriated to his own use any business secrets or special knowledge (compare Jones Co. v Burke, 306 N.Y. 172, 188-189, with Reed, Roberts Assoc. v Strauman, 40 N.Y.2d 303, 308-309, and Leo Silfen, Inc. v Cream, 29 N.Y.2d 387, 391-392, 395).
Chief Judge BREITEL and Judges JASEN, GABRIELLI, JONES, WACHTLER, FUCHSBERG and COOKE concur in memorandum.
Order affirmed.