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New York court provides new guidance on soliciting former clients

from Cooley LLP

New York common law historically has prohibited a seller of the good will of a business from "improper solicitation" of its former clients, on the theory that such solicitation impairs the value of the good will sold — the so-called Mohawk doctrine. In a recent decision, the New York Court of Appeals provided guidance on responding to inquiries from a former client, making it clear that a seller may give active assistance to a new employer's efforts to pitch its business to former clients of the seller. more

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