First Department Again Rules 3-Year Non-Compete Unenforceable Against Joel Arencibia
February 2, 2026
On January 13, for the second time in three months, the New York Appellate Division, First Department, has found a 3-year non-compete unenforceable against Harris St. Laurent & Wechsler LLP client Joel Arencibia and his new business, Arencibia & Co. The decision reaffirms Arencibia’s right to compete in the luxury residential construction business anywhere in the world without restriction following his split from his former employer, SilverLining, Inc.
Only a few months earlier, in an October 21, 2025, decision, the First Department had affirmed a trial court ruling that SilverLining could not enforce a non-compete covenant in Arencibia’s employment agreement against him. Read the October decision here.
Despite that earlier ruling by the trial court, SilverLining had secured a preliminary injunction in August 2025, preventing Arencibia and his new business from any act of competition. In this latest decision, the Appellate Division reversed the injunction, emphasizing its earlier holding that the covenant was unenforceable and that, therefore, SilverLining could not “make the showing required for the imposition of a preliminary injunction.” Read the January decision here.
“The Appellate Division has now said twice what our firm has said from day one: SilverLining could not enforce the non-compete against Mr. Arencibia or his business,” said partner Adam Oppenheim, who led the HSW team on the case. “These two decisions confirm that this litigation never should have happened in the first place. Joel and his new business are eager to walk down the path paved for him by these courtroom victories.”
Arencibia has spent decades establishing himself as one of the most trusted builders in the luxury residential construction industry. With the ruling, he is free to lead his new business, Arencibia and Co., into its next phase of growth.
In addition to Oppenheim, the HSW team included associates Tina Lapsia and Arshiya Sharda.