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Restrictive Covenants Business Litigation

K&L Gates LLP

New Aim Misses the Mark: Federal Court Clarifies What Constitutes Confidential Information

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The recent decision of New Aim Pty Ltd v Leung (No 4) is a timely reminder of how confidential information needs to be treated and restricted by businesses to allow it to be protected under law....more

Jenner & Block

Delaware Court Refuses to Enforce or Modify Overbroad Noncompete in Cleveland Integrity Services v. Byers

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In Cleveland Integrity Services, LLC v. Byers (Del. Ch. Feb. 28, 2025), the Delaware Court of Chancery declined to enforce a two-year non-compete agreement that it found to be geographically overbroad and refused to narrow or...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

Foley & Lardner LLP

Federal Court Enjoins Former Franchisees and Two Related Entities from Competing Against Franchisor

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A federal court recently granted in part and denied in part a franchisor’s motion to enjoin the post-termination activities of its former franchisees and two related entities. Rooterman, LLC is a plumbing services franchisor....more

Robins Kaplan LLP

Avoiding a Tragic End to a Fiduciary Relationship

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Blockbuster movies follow varied plotlines—some tragic, some heartwarming, some a mix. Often they are based on human dramas. In the real world, fiduciary relationships can set the proverbial stage for unwelcomed high drama,...more

Fox Rothschild LLP

Wolfspeed, Durham-Based Semiconductor Producer, Fighting Financial Peril in the Market and Employee Exits in the Courts

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Wolfspeed, a Durham-based silicon carbide semiconductor business, has plenty on its plate these days amid media reports of an impending bankruptcy reorganization. While such a filing would be aimed at a short(ish) judicial...more

Bradley Arant Boult Cummings LLP

Weathering the Business Divorce Storm: Charting Safe Passage for Both Sides of the Transaction

Business divorces often involve turbulence as business partners go through this process. But partners who plan ahead can navigate through their business divorce to avoid capsizing the company or frustrating their personal...more

DarrowEverett LLP

Generative AI and Trade Secrets: A New Frontier for IP Litigation

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As legal and business professionals focused on protecting intellectual property—especially those of us in business litigation—it's crucial to stay attuned to the expanding influence of generative AI (“GenAI”). While patents...more

Fox Rothschild LLP

Two business court rulings offer insights on trade secret pleadings, employment agreements, and credibility

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Maven Advantage, Inc. and Square One Storm Restoration, LLC are competing roofing businesses. Maven alleged that two employees (Couch and Daniels) stole Maven’s trade secrets (customer lists) and then quit to work for Square...more

Morris James LLP

Key Takeaways from Recent Delaware Restrictive Covenant Case Law

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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

Sheppard Mullin Richter & Hampton LLP

Buyer Beware: Delaware Courts Continue to Refuse to Enforce Deal-Based Non-Competes

In a blog earlier this year, we discussed the Delaware Chancery Court’s refusal to enforce a sale of business non-compete in Kodiak Building Partners, LLC v Adams. We wondered then whether Kodiak represented a one-off...more

Farrell Fritz, P.C.

Business Divorce and Restrictive Covenants

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Closely-held business owner breakups often defy easy categorization. What seem at first blush to be traditional business divorce cases sometimes end up treading far into other legal practice areas. Other disputes blur...more

Troutman Pepper Locke

Delaware Court of Chancery Strikes Down Another Sale of Business Noncompete

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In what is becoming an emerging trend for the Delaware Court of Chancery, the court recently held in Intertek Testing Services NA, Inc. v. Eastman that a sale of business noncompete with a worldwide scope was unenforceable....more

Robinson & Cole LLP

Buyer Beware: Delaware Court of Chancery Declines to Blue-Pencil Restrictive Covenant in M&A Transaction

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On October 6, 2022, in Kodiak Building Partners, LLC v. Philip D. Adams, C.A. No. 2022-0311-MTZ (Oct. 6, 2022), the Delaware Court of Chancery found that a restrictive covenant entered into in connection with an asset...more

Flaster Greenberg PC

How to Avoid Costly Business Litigation: Tip #6 Use Non-Competition Agreements with Your Employees Sparingly

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...Why should you be cautious about having your employees sign non-compete agreements or other restrictive covenants, as we lawyers call them? After all, non-compete agreements have become favored as a means of protecting...more

Shutts & Bowen LLP

No, A Perpetually-Unfair Commission-Splitting Agreement Is Not A Restraint Of Trade

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In a recent case that is interesting reading for both antitrust lawyers and insurance agents, which probably does not happen often, Florida’s Second District Court of Appeal (“Second DCA”) held that a commission-splitting...more

FordHarrison

Non-Compete News: – Georgia Court Interprets Non-Compete Statute's "Sale-of-a-Business" Provision

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Georgia’s Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) (“RCA”) governs Georgia non-compete agreements entered into after May 2011. Very few courts have interpreted the RCA since its inception. In Bearoff v. Craton,...more

Seyfarth Shaw LLP

Federal Judge Confirms That Massachusetts’ New Non-Compete Law Does Not Require Garden Leave or Massachusetts Choice of Law

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As we’ve previously written about on this blog, last summer the Massachusetts legislature passed a non-compete reform bill which went into effect on October 1, 2018. Readers of this blog will recall our concerns that the new...more

Farrell Fritz, P.C.

Is Customer Information A Trade Secret? Not So Fast!

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Under what circumstances do customer information and business operations constitute “trade secrets” that may be enjoined from use by a former employee ? A recent decision by Justice Elizabeth H. Emerson on this issue serves...more

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