News & Analysis as of

Breach of Contract › Former Employee › Contract Terms

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

WilmerHale

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

WilmerHale on

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

Mayer Brown

Hong Kong Court Clarifies the Application of Implied Terms in Employment Contracts

Mayer Brown on

The recent case of Yang Zhizhong v. Nomura International (Hong Kong) Limited helpfully clarifies the applicability of Implied Term of Trust and Confidence, the Braganza duty and the Anti-avoidance Term in the context of...more

Morris James LLP

Chancery Finds Non-Compete Unenforceable by Subsidiaries Unless Identified in Agreement

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Frontline Techs. Parent, LLC v. Murphy, C.A. No. 2023-0546-LWW (Del. Ch. Aug. 23, 2023) - This non-compete decision reminds drafters to pay careful attention to scope and definitions, in particular language covering the...more

Proskauer - California Employment Law

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

Proskauer - California Employment Law on

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

BCLP

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

BCLP on

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

Weintraub Tobin

California Supreme Court Holds that Payroll Services Provider ADP Cannot Be Sued for Breach of Contract, Negligence, and Negligent...

Weintraub Tobin on

Can an employee sue the employer’s payroll service for failure to correctly process and report payroll? According to the California Supreme Court recent decision in Goonewardene v. ADP, LLC (2019) 6 Cal.5th 817, the answer...more

Dorsey & Whitney LLP

How Important are Irreparable Injury Provisions in Non-Compete Agreements?

Dorsey & Whitney LLP on

Today’s workforce is more mobile than in past generations. Long gone are the days when an employee started and ended a career at the same company. ...more

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