Supreme Court Queens Commerical Division rules that an employee may not use their principal’s time, facilities, or proprietary secrets to build a competing business. NYWC, Inc. v. Pro Beauty Concepts.
Pardalis & Nohavicka client, NYWC, Inc., is a “virtual company” which conducts its business on eBay and Amazon as a merchant of health, beauty, and electronic products. NYWC hired defendant who managed all aspects of NYWC’s inventory and handled customer inquiries. She was entrusted with all of the NYWC’s proprietary and confidential information including the business model, ordering, stocking, and shipping of inventory, client and distributor contact information, website passwords and eBay and Amazon account information. While still working as an employee of NYWC, she founded and became Chief Executive Officer of Pro Beauty Concepts, Inc., to compete directly with NYWC, and launched a merchant account on eBay and Amazon selling health and beauty products.
In the compliant it was alleged that the products sold by defendant were obtained through illegal use of NYWC’s confidential client and distributor lists. The court denied Pro Beauty’s motion to dismiss.
The decision can be found at the following link: http://www.courts.state.ny.us/reporter/3dseries/2014/2014_51062.htm