In the recent decision in Power Point Boot Camp Inc. v. Warrior Fitness Boot Camp, LLC,1 the U.S. District Court for the Southern District of New York reaffirmed the courts’ continued recognition and application of the long-standing, and some would say antiquated, “Faithless Servant” doctrine in New York. The faithless servant doctrine, sometimes referred to as the faithless agent doctrine, provides that disloyal2 employees forfeit their right to the compensation they have earned.
The doctrine, whose origins lie in agency law, originally was formulated by two New York Court of Appeals decisions in the late 19th century, Murray v. Beard3 and Turner v. Kouwenhoven.4 Although what might appear to be an unusually harsh doctrine has been relaxed by the state and federal courts in New York, particularly during the last several decades, it remains at odds with the approach taken by many other states.
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