Mortgage lender Greystone Funding Corp. found a weakness in the firm’s noncompete agreement, according to a story at Law360:
Mortgage lending company Greystone Funding Corp. can’t enforce a noncompete agreement against a former employee who launched his own rival lending firm because it fired him without cause before the contract expired, a New York state judge has ruled.
Judge Charles E. Ramos said that because Greystone fired Ephraim Kutner after he said he didn’t want to renew his soon-to-expire employment contract, the contractual noncompete provisions that would’ve prevented him from striking out on his own and competing with Greystone could no longer be enforced.
