Moyes

The primary question in this proceeding is the validity of a termination agreement between an employer and its former employee which, inter alia, restrains the former employee from disrupting, damaging, impairing or interfering with his former employer’s business by “raiding” its employees. Plaintiff Loral Corporation and its subsidiary, Conic Corporation, brought this action against its former executive officer, Robert Moyes, claiming Moyes breached the agreement by inducing employees of plaintiff to work for Moyes’ subsequent employer, Aydin Corporation.

The trial court granted judgment of nonsuit on August 26, 1981, after plaintiffs’ opening statement as to this cause of action on the ground the restriction against hiring away the plaintiff’s employees was an unlawful restraint of competition, stating “the contract in its entirety is null and void ab initio. ”

The court also determined, contrary to Moyes’ contention, that the termination agreement had not been induced by the employer’s fraud.

We will reverse the judgment of nonsuit on the employer’s action for breach of contract and remand the matter for trial and/or further proceedings on these and subsidiary…