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Breach of Contract Restrictive Covenants Employment Contract

Troutman Pepper Locke

Restrictive Covenants Unenforceable Where Consideration Forfeited

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In North American Fire Ultimate Holdings, LP v. Alan Doorly, the Delaware Court of Chancery held that the restrictive covenants included in an incentive unit grant agreement were unenforceable when the units received by the...more

Jenner & Block

Delaware Supreme Court Reaffirms Reluctance to Blue-Pencil Overbroad Restrictive Covenants in Sunder v. Jackson

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The Delaware Supreme Court’s decision in Sunder Energy, LLV v. Jackson, No. 455, 2023, 2024 Del. LEXIS 407 (December 10, 2024) reaffirmed the courts’ limited willingness to modify or “blue-pencil” overbroad restrictive...more

Constangy, Brooks, Smith & Prophete, LLP

Employee pirates can plunder a business. Arrrgh ye ready?

Piracy is defined as robbery by ship- or boat-borne attackers upon another ship or a coastal area, with a goal of stealing cargo or other valuables. During the Golden Age of Piracy, from the 1680s to the 1720s, infamous...more

Epstein Becker & Green

Massachusetts High Court To Weigh In on Forfeiture-for-Solicitation Provisions in Era of Massachusetts Noncompetition Agreement...

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On Monday, March 3, 2025, the Massachusetts Supreme Judicial Court (“SJC”) heard argument in Miele v. Foundation Medicine, Inc., regarding whether the Massachusetts Noncompetition Agreement Act, G. L. c. 149, § 24L (the...more

WilmerHale

Beating the Odds: First Circuit Doubles Down on Massachusetts Decision Enforcing Noncompete Against Sports Betting Executive Newly...

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Against a growing trend of legislation and broader efforts seeking to limit or eliminate post-employment noncompetition restrictions, recent Massachusetts and First Circuit decisions in a dispute between DraftKings and one of...more

Quarles & Brady LLP

Supply Chain Survival Series: Remedies for Breach of Contract (Article #14)

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We have previously discussed the obligations a non-breaching party has to mitigate its own damages in the event of a contract breach. Assuming a party has mitigated its damages, this article discusses the potential remedies...more

Farrell Fritz, P.C.

Unpacking the (Un)Reasonableness of Non-Compete Provisions

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New York law generally does not favor non-compete agreements, viewing them as unreasonable restraint of trade. As a result, New York courts apply a rigorous standard when deciding whether to enforce these restrictive...more

McDermott Will & Emery

Fifth Circuit Rejects Recruiter’s Trade Secret Misappropriation and Contract Defenses

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The US Court of Appeals for the Fifth Circuit affirmed a district court’s decision finding trade secret misappropriation and breach of contract based on a recruiter’s improper use of confidential client information. Counsel...more

Parker Poe Adams & Bernstein LLP

North Carolina Court of Appeals Limits Grounds for Review of Noncompete Injunction Denial

When litigating employment non-competition covenants, issuance by the court of a preliminary injunction may be more important than the ultimate outcome of the litigation. Depending on the circumstances, the injunction can...more

Epstein Becker & Green

Preemption Questions Continue as FTC and NLRB Fight Restrictive Covenants

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As federal administrative agencies wade further into rulemaking and adjudicative efforts to outlaw noncompetes and restrictive covenants, defendants are beginning to raise preemption arguments in response to state court...more

Fisher Phillips

Former Employees Who Couldn’t Wait to Leave Their Florida Employer Before Illegally Competing Ordered to Pay Heavy Price

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A Florida Circuit Court judge sternly rebuked two former employees of a private South Florida provider of Autism treatment services who began competing illegally with a new employer – while still employed with their old...more

Morris James LLP

Supreme Court Affirms Chancery’s Interpretation of Word “And” in Option Agreements

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Weinberg v. Waystar, Inc., No. 274, 2022 (Del. March 16, 2023) - The appellant was a former chief marketing officer of the appellee, a Delaware corporation. Soon after her termination, the appellant timely exercised her...more

Foley & Lardner LLP

Protecting Trade Secrets In States That Disfavor Noncompetes

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Federal and state laws are becoming increasingly unfriendly to employers' efforts to impose post-employment restrictions on workers via nonsolicit and noncompete agreements. However, even in states that have historically...more

Rumberger | Kirk

Florida Still Strongly Favors Employer’s Non-Compete Agreements 

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Non-compete and confidentiality clauses have long been a fixture in employment agreements in Florida. However, there has been some dissention as to whether such restrictive covenants continue to apply where an employment...more

Proskauer - California Employment Law

California Court of Appeal Publishes Opinion Upholding Customer Non-Solicitation Covenant

Despite California’s general hostility towards post-termination restrictive covenants, the California Court of Appeal, in a recently published opinion, Blue Mountain Enters., LLC v. Owen, 74 Cal.App.5th 537 (1st Dist. Jan....more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Georgia Courts Cannot Toll Duration of Noncompete Agreement, Even Against Willful Violator

Since the passage of the Georgia Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) in May 2011, there has been some level of uncertainty regarding the extent to which a court may “blue pencil” or modify an otherwise...more

BCLP

Colorado Law May Govern Noncompete Despite Choice-Of-Law Provision

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Colorado law is not particularly friendly to noncompete agreements. A Colorado statute prohibits all such agreements unless they fall within one of four specific exemptions....more

Cooley LLP

Alert: Federal Judge Dismisses Breach of Contract Claim Based on Noncompliance with Massachusetts Noncompetition Agreement Act

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On July 15, 2021, US District Judge Timothy S. Hillman of the US District Court for the District of Massachusetts issued one of the first written decisions analyzing the Massachusetts Noncompetition Agreement Act: KPM...more

Morris James LLP

Chancery Shifts Attorneys’ Fees, Reasoning Perjury Is Bad Faith Per Se

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Lyons Ins. Agency Inc. v. Wilson, C.A. No. 2017-0092-SG (Del. Ch. Apr. 29, 2021). In this action, the Court of Chancery noted that it heard “perhaps the most cogent, and certainly the briefest, argument for fee shifting...more

Littler

Ontario, Canada Court Reminds Employers that Improperly Drafted Restrictive Covenants are Unenforceable

Littler on

In Labrador Recycling Inc. v. Folino, 2021 ONSC 2195 (Labrador Recycling), Ontario’s Superior Court denied an employer’s motion for an urgent injunction to restrain its former employee from competing with it contrary to the...more

Womble Bond Dickinson

Limiting Access to Non-Specialized Suppliers Can Be a Legitimate Business Interest

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Where a business’ non-compete employment agreement precluded its former employee from contacting its suppliers, such restriction could constitute a legitimate business interest. KNC Technologies v. Tutton, 2021 NCBC 25 (J....more

Littler

A Rare Occurrence: California Court Overturns Arbitrator’s Award

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California’s statutory ban on post-employment covenants, which are enforceable in most other states, has bedeviled employers trying to protect confidential information and trade secrets. The state’s Business and Professions...more

Farrell Fritz, P.C.

Restrictive Covenants: The Importance of Understanding Their Contractual Limits

Farrell Fritz, P.C. on

If supermodel Tyra Banks has taught us anything about the modeling industry, it’s that the competition is fierce. Unfortunately, one Manhattan-based modeling agency and former agent aren’t learning this lesson on the...more

Dorsey & Whitney LLP

Restrictive Covenants in Employment Contracts - Employer Liability

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A recent Court of Appeal case, Allen t/a David Allen Chartered Accountants v Pollock and Anr [2020] EWCA Civ 258, has considered the liability that can arise where one business poaches an employee from a rival business, in...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

Restrictive Covenants in the Time of Coronavirus

The spread of the coronavirus disease 2019 (COVID-19) has led to changes regarding many legal issues. Despite the changes, companies still need to protect confidential information, goodwill, customer relationships, and...more

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