Legal in New York

New York Legal Intel

Monday, May 25, 2026
2 min read
5 stories

Welcome to your daily briefing on legal developments in New York. Today we're covering 5 key stories including updates on new york legal headlines, background & context. Let's dive in.

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2

Background & Context

3 stories

2.1

Why your non-compete clause may be unenforceable in NY.

Enforceability of employee non-competes varies dramatically by state and is trending toward narrower enforcement nationally. Common defects include geographic scope broader than the employer's actual market, duration longer than necessary to protect a legitimate interest, and lack of consideration beyond continued employment.

Why It Matters

An overbroad non-compete is often unenforceable in its entirety, not just blue-penciled down — meaning the employer gets no protection at all. A narrower, defensible clause protects more than an aspirational one.

2.2

The IOLTA mistake that ends careers.

Client trust funds and the firm's operating funds must never commingle, even temporarily, even with the intent to "fix it later." Bar audits look for two things first: (1) any check or transfer that touches both accounts, (2) negative balances on any specific client's ledger. Both are presumptive misappropriation regardless of intent.

Why It Matters

Trust-account violations produce some of the harshest discipline in professional regulation, including suspension and disbarment. The technicality has no defense based on good intentions.

2.3

Fee-shifting statutes most lawyers forget exist.

Beyond civil-rights and consumer-protection statutes, many NY jurisdictions have fee-shifting provisions in landlord-tenant, mechanics' lien, insurance bad-faith, and construction-defect contexts. Pleading the fee-shifting statute in the complaint is typically required to preserve the right to recover.

Why It Matters

A fee-shifting case has fundamentally different settlement dynamics than a non-fee case, especially in low-damages disputes where fees can dwarf the underlying claim.

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Issue Summary

DateMay 25, 2026
Stories5
Sections2
Read Time2 min
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