DKC GROUP HOLDINGS LLC v. REECE INC MORSCO (2025)

Order, Supreme Court, New York County (Melissa A. Crane, J.), entered on or about October 25, 2024, which, to the extent appealed from as limited by the briefs, granted plaintiffs’ motion for a preliminary injunction to the extent of enjoining defendant and its affiliates from directly soliciting any of plaintiffs’ directors, officers, or employees and using its confidential information, unanimously affirmed, without costs.

Supreme Court providently exercised its discretion in granting the narrowly tailored preliminary injunction, as plaintiffs demonstrated a likelihood of success on the merits, irreparable injury without the injunction, and a balance of the equities in their favor (see Nobu Next Door, LLC v. Fine Arts Hous., Inc., 4 N.Y.3d 839, 840, 800 N.Y.S.2d 48, 833 N.E.2d 191 [2005];  BDC Mgt. Servs., LLC v. Singer, 144 A.D.3d 597, 597, 41 N.Y.S.3d 419 [1st Dept. 2016]).  Plaintiffs showed prima facie that the cause of action for breach of the nonsolicitation provision in the parties’ agreement has a reasonable probability of success given the enforceability of the provision and plaintiffs’ showing that defendant directly solicited plaintiff Dana Kepner Company, LLC's employees (see Asprea v. Whitehall Interiors NYC, LLC, 206 A.D.3d 402, 403, 169 N.Y.S.3d 308 [1st Dept. 2022];  see also BDC Mgt. Servs., 144 A.D.3d 597, 597–598, 41 N.Y.S.3d 419 [1st Dept. 2016]).  Plaintiffs also demonstrated that they would suffer irreparable injury from the continued loss of its employees, which would cause further disruption to plaintiffs’ business and loss of goodwill (see Advent Software, Inc. v. SEI Global Servs., Inc., 195 A.D.3d 498, 499, 150 N.Y.S.3d 256 [1st Dept. 2021]).  In addition, plaintiffs showed that they would suffer greater harm if defendant continued to solicit their employees or use their confidential information (see Barbes Restaurant Inc. v. ASRR Suzer 218, LLC, 140 A.D.3d 430, 432, 33 N.Y.S.3d 43 [1st Dept. 2016]).  The court properly narrowed the scope of the injunction to prevent any harm to plaintiffs’ remaining employees or to defendant (see Asprea, 206 A.D.3d at 403, 169 N.Y.S.3d 308).