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Your Condo | Employment

When Property Managers Change Jobs

Who Keeps the Client?

By Mordy Mednick

In the property management industry, Effectively, the matter boils down to • What was the extent or frequency
where everything is intensely competi- whether or not John is considered a key of the contact between John and
tive, a critical question is whether or not employee of Company X. If so, John, Company X’s customers and/or
a property manager is through Company Y, would be unable to suppliers?
entitled to switch from service the condominium building for a • Was John the primary contact
one property manage- reasonable period after John’s departure with the customers and (or)
ment company to from Company X. suppliers?
another and, at the A key employee is one who is gener- • To what extent did John have
same time, continue ally responsible for guiding the business access to and use, or otherwise
Mordy servicing the same affairs of the employer, is involved in have knowledge of, Company X’s
Mednick condominium build- the decision-making process, or has customers, its accounts, pricing
ing with the property access to confidential information that, • To what extent was John’s
practices, and the pricing of
Photo: ©iStock.com/ fotostorm erty manager of Company X and John, It is well established that employees in Key employees owe fiduciary duties
products and services?
if disclosed, could impair the competi-
manager’s new employer.
For example, suppose John is a prop-
tive advantage that the employer enjoys.
information regarding customers,
suppliers, pricing, etc.,
managerial roles are typically considered
through Company X, services a condo-
minium building. If John leaves for key employees. In order to determine
confidential?
Company Y, is the condominium build-
whether or not John is a key employee
ing still entitled to retain John through of Company X, the court will likely
to their former employers not to
consider the following questions:
unfairly compete or appropriate corpo-
Company Y?
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