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Breach of Contract › Employment Contract › Employment Litigation

Morris James LLP

Court of Chancery Finds Employee’s Restrictive Covenants Unenforceable for Lack of Consideration

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N. Am. Fire Ultimate Holdings, LP v. Doorly, C.A. No. 2024-0023-KSJM (Del. Ch. Mar. 7, 2025) - A contract requires consideration to be enforceable. In this case, the Court of Chancery held restrictive covenants were...more

Tucker Arensberg, P.C.

When Your New Job Isn’t What You Signed Up For: A Physician’s Guide

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Most physicians put significant thought and effort into reviewing and negotiating their employment contracts before signing. But what happens when you’ve started your new position, and now you’re noticing red flags: the call...more

Husch Blackwell LLP

Supreme Judicial Court Limits Scope of Massachusetts Noncompetition Agreement

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The Massachusetts legislature passed the Massachusetts Noncompetition Agreement Act (MNAA) in 2018, culminating a longstanding effort to balance employers’ rights to protect legitimate business interests—such as trade...more

Stikeman Elliott LLP

Status Update: Ontario Court Upholds RSU Forfeiture Provision, Despite Employment Agreement Violating the ESA

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In the recent Wigdor v Facebook Canada Ltd. and Meta Platforms, Inc., 2025 ONSC 4051 decision (the “Decision”), which has not yet been reported, the Ontario Superior Court of Justice upheld the enforceability of restricted...more

Foley & Lardner LLP

Delaware Court Confronts Issue of First Impression: When a Company Attempts to Enforce a Noncompete Seeking Only Damages, Does the...

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In Fortiline, Inc. v. McCall, the plaintiffs sought to enforce a noncompetition agreement against its former employees through a preliminary injunction. The court denied the injunction, holding the noncompetition agreements...more

Dickinson Wright

Start the Clock—The Case for Including Contractual Limitations Periods in Employment Agreements.

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Contractual limitations periods provide parties on both sides of an agreement certainty regarding the filing of a potential action. But many employers do not know that they may include such contractual limitations periods in...more

ArentFox Schiff

Massachusetts Supreme Judicial Court Ruling: Noncompetition Agreement Act Does Not Apply to Forfeiture Clauses

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The Massachusetts Supreme Judicial Court (SJC) recently clarified the scope of the Massachusetts Noncompetition Agreement Act (MNAA). In Susan Miele v. Foundation Medicine, Inc., the SJC held the MNAA does not apply where a...more

Falcon Rappaport & Berkman LLP

Delaware Chancery Court Narrows the Path for Enforceable Non-Competes: Lessons from North American Fire and Payscale

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A notable trend has emerged in Delaware with respect to the enforceability of non-competes – while once considered a management-friendly jurisdiction, two recent decisions demonstrate a marked shift towards a closer scrutiny...more

Mintz - Employment Viewpoints

Top Massachusetts Court Clarifies That Non-Solicitation Covenants Fall Outside the State’s Non-Compete Law

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In a closely watched decision, the Massachusetts Supreme Judicial Court in Miele v. Foundation Medicine, Inc. clarified that the Massachusetts Noncompetition Agreement Act (MNAA) (G.L. c. 149, § 24L) does not apply to...more

Morgan Lewis

Massachusetts High Court Clarifies Noncompete Law’s Scope, Declines to Let Nonsolicits ‘Through the Back Door’

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In Miele v. Foundation Medicine, Inc., the Massachusetts Supreme Judicial Court (SJC) clarified that the Massachusetts Noncompetition Agreement Act (MNAA or the Act) does not apply to a forfeiture clause triggered by a breach...more

BCLP

Hong Kong High Court Grants Injunction to Enforce Restrictive Covenants

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In two separate decisions in April 2025, the Hong Kong High Court first refused, but then allowed, an IT company’s application for an interlocutory injunction to enforce post-termination restrictive covenants against its...more

Bennett Jones LLP

Not So Dependable? BC Court Says Employers May Not Expect Dependent Contractors to Get Less Reasonable Notice than Employees

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In the recent decision of Ursic v Country Lumber Ltd., 2025 BCSC 970 (Country Lumber), the Supreme Court of British Columbia held that there is no presumption that dependent contractors ought to receive less reasonable notice...more

Farrell Fritz, P.C.

The Forfeited Equity Trap: Why Your Non-Compete Might Be Worthless

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Imagine you’re a private equity firm. You buy a company, and you want to retain and incentivize key employees, so you give them some equity in the form of incentive units.  You also want to prevent them from running off and...more

Hogan Lovells

Confidentiality in the Digital Age: The Singapore approach

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In a digital age where large volumes of data can be transferred and retained with ease, the Singapore High Court’s recent decision in Hayate Partners Pte Ltd v Rajan Sunil Kumar [2025] SGHC 41 sheds light on a growing...more

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

Dickinson Wright

Start the Clock—The Case for Including Contractual Limitations Periods in Employment Agreements

Dickinson Wright on

Contractual limitations periods provide parties on both sides of an agreement certainty regarding the filing of a potential action. But many employers do not know that they may include such contractual limitations periods in...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

Wiley Rein LLP

Fifth Circuit Holds Carve-Back Provision Could Not Overcome Breach of Contract Exclusion for Louisiana Wage Payment Act Claim

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The United States Court of Appeals for the Fifth Circuit, applying Louisiana law, has held that a breach of contract exclusion barred coverage for a judgment awarded to two employees who were not paid severance as required...more

Bennett Jones LLP

BC Court of Appeal Confirms that the Duty of Honest Performance Does Not Extend to Pre-Contractual Dishonesty

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In Ocean Pacific Hotels Ltd. v Lee, 2025 BCCA 57, the Court of Appeal for British Columbia confirmed that the duty of honest performance in contract does not extend to pre-contractual negotiations....more

Constangy, Brooks, Smith & Prophete, LLP

Employee pirates can plunder a business. Arrrgh ye ready?

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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

Wiley Rein LLP

Court Holds that Contract Exclusion in EPL Policy Does Not Preclude Duty to Defend When Some Allegations Extend Beyond Employment...

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Applying Indiana state law, the Indiana Court of Appeals has held that a breach of contract exclusion did not preclude a duty to defend under an employment practices liability policy because some of the underlying allegations...more

Littler

Ontario, Canada Court Finds Employer Repudiated Employment Agreement When it Failed to Pay Employee’s Contractual Severance

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In Timmins v. Artisan Cells, 2025 CanLII 2387, Ontario’s Superior Court of Justice found, in an undefended claim, that the employers “by their correspondence and actions” repudiated the employee’s employment agreement when...more

Littler

Ontario, Canada Appeal Court Dismisses Employer’s Appeal of $1.8 Million Damage Award to Retired VP

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In Boyer v. Callidus Capital Corporation, 2025 ONCA 79, the Court of Appeal for Ontario (OCA) dismissed the employer’s appeal of the motion judge’s order in Boyer v. Callidus, 2024 ONSC 20, discussed in detail here. The...more

Cooley LLP

From Employee to Plaintiff: What to Do When You Get Sued by a Former Employee in the US

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Getting sued by a former employee can be a stressful experience for any employer, especially for a company that has just started to grow its workforce and is not experienced with these kinds of claims. Unfortunately, the cost...more

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