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Unenforceable Contract Terms

Proskauer - California Employment Law

The Latest Developments in the Arbitration Wars – Implausible Sexual Harassment Claims

Since its enactment, the federal Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act has resulted in plaintiffs’ lawyers tacking on increasingly implausible sexual harassment claims to unrelated...more

Davidoff Hutcher & Citron LLP

Restrictive Covenants in Restaurant Ownership Agreements: Enforceability in New York

Restrictive covenants are critical in restaurant ownership agreements to protect business interests, prevent unfair competition, and safeguard proprietary information. However, in New York, courts scrutinize these clauses to...more

Blake, Cassels & Graydon LLP

Cinq victoires récentes pour les employeurs : le vent tournerait-il en leur faveur?

Contrairement à la tendance axée sur les employés qui se dégage de la jurisprudence pour ce qui est de l’interprétation des contrats d’emploi et des ententes de rémunération, les tribunaux canadiens ont récemment rendu un...more

Mintz

[Podcast] Mintz On Air: Practical Policies – Disparage Me Not

Mintz on

Member Jen Rubin is joined by Member Natalie Groot for a practical conversation on non-disparagement clauses. This episode is part of a series of conversations designed to help employers navigate workplace changes and...more

Adams & Reese

Louisiana Court Invalidates Arbitration & Delegation Clauses in Residential Sale Contract

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Arbitration clauses that reference the “AAA Construction Industry Arbitration Rules” are unenforceable if the contract does not define “AAA” or if the Construction Industry Arbitration Rules are not provided to lay...more

Mintz - Employment Viewpoints

Mintz On Air: Practical Policies – Disparage Me Not

Member Jen Rubin is joined by Member Natalie Groot for a practical conversation on non-disparagement clauses. This episode is part of a series of conversations designed to help employers navigate workplace changes and...more

A&O Shearman

Ninth Circuit Dissolves Arrangement Between Rival Vegas Newspapers as Illegal

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On August 4, 2025, the United States Court of Appeals for the Ninth Circuit sided with the Las Vegas Review-Journal (“Defendants”) in antitrust litigation with rival Las Vegas newspaper the Las Vegas Sun, Inc. (“Plaintiff”),...more

Morris James LLP

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

Morris James LLP on

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

Husch Blackwell LLP

NFL’s Arbitration Agreement Fumbles, Allowing Coach to Pursue Discrimination Claims in Court: Employment Law Lessons for Employers

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The National Football League (NFL) is in the spotlight this season, not because of any certain game on the field, but for a legal battle off it. Last week, the Second U.S. Circuit Court of Appeals agreed that a NFL coach...more

Kaufman & Canoles

K&C Sports & Entertainment Law Weekly Roundup - August 2025 #3

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A Connecticut Little League and its national parent company have pushed back against a group of parents accusing them of not properly training volunteer coaches, saying that the organization they represent does not actually...more

Troutman Pepper Locke

Delaware Court of Chancery Invalidates Noncompete Provision Found in Typical Sponsor Equity Documents

Troutman Pepper Locke on

In Weil Holdings II, LLC, v. Jeffrey Alexander, DPM, the Delaware Court of Chancery struck down a noncompete provision contained in the LLC agreement of a sponsor-backed portfolio company, finding the provision unreasonable...more

Troutman Pepper Locke

Colorado AG Sues PetSmart Over TRAP Contracts

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Colorado Attorney General (AG) Phil Weiser has sued PetSmart LLC, alleging that its use of Training Repayment Agreement Provisions (TRAPs) violates state consumer protection and labor laws. The lawsuit reflects a broader...more

Morrison & Foerster LLP

New York Lawmakers Approve Ban on Rent Minimum Clauses in Mortgage Loan Transactions: Bill Not Yet Signed Into Law By Governor

How much chaos might a three-sentence bill that was quietly passed by the New York State legislature sow on the real estate lending industry? Potentially plenty. On June 13, 2025, a bill passed by the New York Assembly (A....more

Fisher Phillips

Michigan Standard Employment Forms May No Longer Hold Up in Court: 2 Steps Employers Should Take Now

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The Michigan Supreme Court just ruled that many boilerplate forms employees sign on day one – sometimes known as adhesive employment agreements – are no longer automatically enforceable if they shorten the timeframe for...more

Ropes & Gray LLP

[Podcast] Navigating Non-Competes and Other Exclusivity Provisions in Collaboration & License Agreements and Other Strategic...

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On this Ropes & Gray podcast, licensing and collaboration partner Hannah England and antitrust partner Lisa Kaltenbrunner discuss how EU antitrust rules impact non-competes and other exclusivity provisions in collaboration...more

Vorys, Sater, Seymour and Pease LLP

Texas Invalidates Confidentiality Clauses in Sexual Abuse Cases

Effective September 1, 2025, Texas employers must comply with Trey’s Law (S.B. No. 835), a new law that voids certain confidentiality and nondisclosure clauses related to sexual abuse. This legislation echoes a growing...more

Proskauer - New Media & Technology

Why a Transaction’s Context Matters: Website Terms Found Unenforceable Despite Proximate Placement to “Place Order” Button

In Cody v. Jill Acquisition LLC, No. 25-937 (S.D. Cal. June 30, 2025), the Southern District of California declined to enforce a retail site’s terms of use and compel arbitration, holding that the plaintiff, who used guest...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

Warner Norcross + Judd

Michigan Court of Appeals Splits with Federal Courts and Holds Standard Stellantis Contract Terms Enforceable

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Earlier this week, the Michigan Court of Appeals issued its opinion in FCA US, LLC v. Kamax Inc., et al., the latest in a string of court decisions interpreting the enforceability of supply chain contracts in the wake of the...more

Venable LLP

California Supreme Court Finds Parties Cannot Contract Away Liability for Willful Injury

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On April 24, 2025, the California Supreme Court held that contract clauses that limit damages for injuries caused by willful tortious conduct are prohibited by Section 1668 of the California Civil Code....more

Lathrop GPM

Citing California Franchise Relations Act, California Federal Court Rejects Franchisor’s Attempt to Dismiss Case

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A federal court in California recently denied a franchisor’s motion to dismiss litigation, holding that a franchise agreement provision requiring the parties to mediate in Texas prior to instituting litigation or arbitration...more

Fenwick & West LLP

Ninth Circuit Reinforces Stricter Standards for Online User Agreements

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On April 15, 2025, the Ninth Circuit issued a second decision in less than two months regarding the enforceability of a “sign-in wrap agreement,” which links users to a website’s terms of service....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

Cooley LLP

The Million-Pound Question (Revisited): Is My Contract Unfair?

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The decision of the High Court of England and Wales in Durber v. PPB Entertainment Ltd is another helpful case study in how to host a consumer-facing website. It is interesting, given how much time is spent carefully drafting...more

Marshall Dennehey

A Double Take: Workers’ Compensation Liens Render UIM Non-Duplication Clauses Unenforceable

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Key Points: Delaware Superior Court permits injured plaintiffs-employees to board medical bills and lost wages already paid by the workers’ compensation carrier in subsequent UIM claim related to the same incident, despite a...more

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