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GREAT SCOTT, COULDN'T HE KEEP A SECRET?

In Scott v. Beth Israel Medical Center, Inc. , Dr. Norman Scott alleged that his former employer, the Beth Israel Medical Center ("Beth Israel"), had breached an employment contract.

When the New York County Supreme Court sided with Scott, and denied the hospital's motion to dismiss the case, Beth Israel appealed to the Appellate Division, First Department.

The AD1 found that the evidence demonstrated that Scott began offering his services to Beth Israel's competitors while still under contract with Beth Israel, and even "offered the services of the entire Orthopedics Department, without even obtaining the permission of all the affected doctors." In addition, Scott purportedly used his position as department chairman to obtain confidential documents, containing contractual and financial information, and released them to Beth Israel's competitors.

While a person may search for other employment opportunities prior to leaving a current job, the AD1 reinforced that an employee "may not make use of [his or her current] employer's time, facilities or proprietary secrets in preparation for engaging in a competing business or endeavor."

The AD1 concluded there was sufficient evidence that Scott was the one who breached the employment contract by violating a duty of "good faith and loyalty" owed Beth Israel, thus entitling the hospital to terminate his affiliation with the institution.

Did Scott suffer a wipe-out?

To download a copy of the Appellate Division's decision, please use this link: Scott v. Beth Israel Medical Center, Inc.

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