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June 5, 2018 News

David Saxe, Danielle Lesser and Michael Mix Author Article on Common Law Faithless Servant Rule

June 5, 2018 – The Hon. David B. Saxe, (ret.) Danielle C. Lesser and Michael Mix authored the article “The Ancient Common Law Faithless Servant Rule: Still Relevant in New York,” that appeared in the New York Law Journal on May 29, 2018.

The article examines the faithless servant doctrine – a powerful tool in which an employer can seek to claw back compensation earned during the period of faithlessness from the employee.  The First Department in Mahn v. Major, Lindsey, & Africa, LLC, Nos. 653048/2014, 155645/2014, 2018 N.Y. App. Div. LEXIS 1713 (1st Dep’t Mar. 20, 2018) recently addressed the issue, finding that the plaintiff had to disgorge her compensation during the period of faithlessness.  The article examines an issue the Mahn Court did not address, namely, whether the employee may argue that she should be allowed to retain compensation relating to actions that were not found to be disloyal although such actions took place during the period of faithlessness.  The article addresses whether this task by task approach is advisable.

Click here for a pdf of the article.