Tag Archives: covenant not to compete

Chancery Addresses Liquidated Damages Clause in Non-Competition Agreement

The following synopsis was prepared by Chauna Abner, an attorney in the Delaware office of Eckert Seamans. In Lyons Ins. Agency, Inc. v. Kelly Wark, et al., C.A. No. 2017-0348-SG (Del. Ch., Jan. 28, 2020), the Court of Chancery opined on the enforceability of a liquidated damages provisions in a non-competition agreement. The Court explained … Continue Reading

TRO Granted to Enforce Covenant-Not-To-Compete Despite Liquidated Damages Provision

The Delaware Court of Chancery granted a TRO recently to enforce a covenant-not-to-compete, or non-compete agreement, notwithstanding a liquidated damages provision and the (unsuccessful) argument that such a provision created the absence of irreparable harm needed for injunctive relief. In Affinity Wealth Management LLC v. McPoyle, C.A. No. 2019-0441-JTL, transcript (Del. Ch. June 18, 2019), the court followed well-established … Continue Reading

Chancery Finds Corporate Officers Usurped Corporate Opportunities and Converted Resources in Violation of their Fiduciary Duty of Loyalty

In a post-trial decision, the Court of Chancery in Dweck v. Nasser, C. A. No. 1353-VCL (Jan. 18, 2012), found that Dweck, the former CEO, a director and 30% stockholder in Kids International Corporation (“Kids”), and Kevin Taxin, Kids’ President, breached their fiduciary duties of loyalty to Kids by establishing competing companies that usurped Kids’ … Continue Reading

Chancery Provides Uncommonly Cursory Explanation for Denial of Injunctive Relief

Geovesi Holdings Ltd v. Bisson, C.A. No. 6780-VCL (Del. Ch. Sept. 19, 2011). Read opinion here. This letter decision denied a motion for injunctive relief to enforce a non-compete agreement, and is notable for its brevity of less than two pages but it is also noteworthy for the explanation that provides the basis for denying … Continue Reading

Chancery Court Dismisses Suit for Breach of Non-Competition Covenant Due to Lack of Personal Jurisdiction

Mobile Diagnostic Group Holdings, LLC v. Suer,  Del. Ch., No. 4298-CC (March 24, 2009), read opinion here. Kevin Brady, a highly respected Delaware litigator, provides us with the following review of this decision. Chancellor Chandler dismissed this action seeking to enforce the terms of non-competition covenants that defendant Suer allegedly agreed to in connection with the sale … Continue Reading
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