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Limited Liability Company (LLC) Restrictive Covenants

Morris James LLP

Key Takeaways from Recent Delaware Restrictive Covenant Case Law

Morris James LLP on

Partners Vincent Cannizzaro and Barnaby Grzaslewicz recently presented Recent Developments in Delaware Restrictive Covenant Case Law: The Alternative Entity Creep, providing key insights into how Delaware’s courts are...more

Allen Matkins

California Court Opines On Fiduciary Duties Of LLC Members And Covenants Not To Compete

Allen Matkins on

Yesterday, the Fourth District Court of Appeal issued a noteworthy opinion addressing at least two significant questions.  Samuelian v. Life Generations Healthcare, LLC, 2024 WL 3878448....more

Ballard Spahr LLP

Is the Delaware Supreme Court Pushing Back on Chancery’s Suspicion of Non-Competes?

Ballard Spahr LLP on

The Delaware Court of Chancery has been increasingly willing of late to strike down non-compete covenants as overbroad, a trend accompanied by a growing unwillingness to “blue pencil” agreements by narrowing terms to what the...more

Allen Matkins

Sundering Noncompetes From The Internal Affairs Doctrine

Allen Matkins on

Last week, I wrote about a recent Delaware case involving an attempt to enforce a non-compete provision in a limited liability company agreement.  Sunder Energy, LLC v. Jackson, 2023 WL 8166517.  The case was brought in the...more

Allen Matkins

Will Your Next California Non-Compete Dispute Be Adjudicated In The Delaware Court Of Chancery?

Allen Matkins on

Sunder Energy, LLC recently sought to enforce a non-compete agreement against its former head of sales in the Delaware Court of Chancery.  Sunder Energy, LLC v. Jackson, 2023 WL 8166517.  Vice Chancellor J. Travis Laster...more

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

U.S. District Court in Massachusetts Weighs in on the ‘Material Change’ Doctrine and Nurse Noncompetition Exemption

A recent ruling by the U.S. District Court for the District of Massachusetts in a restrictive covenant case, Ascend Learning, LLC v. Bryan and SPIN-Learning, LLC, No. 22-cv-11978 (August 16, 2023), has implications for the...more

Cozen O'Connor

Rethinking Restrictive Covenants: Delaware Courts’ Movement in Favor of the Restricted

Cozen O'Connor on

In the first half of 2023, the Delaware Chancery Court issued two decisions regarding non-competition and non-solicitation provisions that should make parties carefully consider whether restrictive covenants are appropriately...more

Levenfeld Pearlstein, LLC

Common Governance Provisions in Accounting Firm Partnership Agreements

When it comes to accounting firm partnership agreements, governance is a key component. In this article, we discuss various governance provisions to consider when drafting an accounting firm partnership agreement....more

Skadden, Arps, Slate, Meagher & Flom LLP

Which Affiliates Are Bound by Restrictive Covenants Hinges on the Language the Parties Chose, Recent Rulings Stress

In 2021, the Delaware Court of Chancery issued two decisions addressing when a contractual party’s affiliates are bound to restrictive covenants in an agreement. In the first case, Sixth Street Partners Management Company,...more

Rivkin Radler LLP

The Employment Law Reporter - Spring 2021

Rivkin Radler LLP on

Here is what we cover in this issue of The Employment Law Reporter: •A federal court in New York has dismissed an employment discrimination lawsuit brought by a former employee of the City University of New York. ...more

Seyfarth Shaw LLP

Louisiana Expands its Non-Compete Statute in Favor of Companies

Seyfarth Shaw LLP on

In a strengthening of company contractual rights, the Louisiana Legislature recently expanded its state non-compete statute by permitting a corporation, partnership, or limited liability company to enter into agreements with...more

Epstein Becker & Green

Need to Know: Amendment to Louisiana Non-Compete Statute Took Effect on August 1, 2020

Louisiana has long had in its statutes one of the nation’s most distinctive non-compete laws, and that statute has just been amended in a subtle but important way. LA. R.S. 23:921 essentially provides that every agreement...more

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

Louisiana Court Upholds Ruling Allowing for the Reformation of a Noncompetition Agreement

The Louisiana Second Circuit Court of Appeal recently held that a noncompetition provision under La. R.S 23:921 affecting a former member of an accounting limited liability company (LLC) could be reformed when the scope of...more

Harris Beach Murtha PLLC

Loan Agreement Updates Needed for Delaware LLCs

Lenders should modify restrictive covenants related to mergers, reorganizations, acquisitions and similar transactions in new and amended loan documents due to amendments to the Delaware Limited Liability Company Act...more

Allen Matkins

New LLC Is Not Delivered By Sale Membership Interests

Allen Matkins on

Readers of this blog should be well aware of California’s general antipathy to covenants not to compete. See links below. Other jurisdictions, however, are less averse. Assuming that a covenant not to compete is...more

Katten Muchin Rosenman LLP

Delaware Court Rules in Favor of Former LLC Member in LLC’s Competition Claim

Last week, the Delaware Court of Chancery ruled that because a limited liability company (LLC) agreement did not contain a provision precluding or restricting competition, i.e., a non-compete provision, a former member did...more

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