In Vibra-Tech Engineers, Inc. v. Kavalek, et al., No. 08-2646-NLH (D.N.J. Dec. 22, 2011), an employee breached his duty of loyalty (also called a fiduciary duty) to his employer by starting a competing business while he was still employed.

The employer not only sued the employee, but also two corporations.  The reason was that “[o]ne corporation, IGS, directly competed with Plaintiff and the other, Geotech, sold [Plaintiff’s] equipment.”  IGS employed the employee during his employment with the Plaintiff and the Plaintiff and his wife owned Geotech which facilitated the offending sales.  Id. at 14.

The Court found that it needed more facts to determine whether the two corporate Defendants should remain in the case.  It needed to consider such factors as “whether and how Individual Defendants utilized the corporate veil to facilitate the breach of their duties . . . ” Id. Because that evidence had not been presented, the Court denied Summary Judgment.

The importance of this case is to illustrate that in a breach of fiduciary duty lawsuit, the parties who facilitated the breach are also at risk of being included as defendants.


© 2012 Nissenbaum Law Group, LLC

PLEASE NOTE Meetings with attorneys by appointment only in Union, NJ; New York, NY; Philadelphia, PA & Dallas, TX offices. Legal services generally performed from the Union, NJ office. The firm has attorneys licensed in New Jersey, New York, Pennsylvania, Texas and/or the District of Columbia. In limited circumstances, the firm may practice in other states under the prevailing multi-jurisdiction rules or through pro hac vice admission.


ATTORNEY ADVERTISING.  Any questions regarding this website should be directed to Gary D. Nissenbaum, Esq. (, who is responsible for the content of this website.

© 2018 Nissenbaum Law Group, LLC. All rights reserved.

Disclaimer | Privacy Policy | Site Map