Bruce Kaye v. Alan P. Rosefielde (073353)

In this appeal, we determine whether a court may order the equitable disgorgement of an employee’s compensation when the employee has breached his or her duty of loyalty to his or her employer, but the employer has not sustained economic loss as a consequence of that breach.

This matter arose from a dispute between Bruce Kaye (Kaye), who managed several timeshare business entities, and Alan Rosefielde (Rosefielde), an attorney whom Kaye initially retained as outside counsel and later hired as an employee. For approximately two years, Rosefielde served as Chief Operating Officer (COO) of some…