An Overview of Recent Delaware Case Law on Noncompete and Forfeiture-for-Competition Provisions
August 20, 2025
Publication| Corporate & Chancery Litigation| Corporate Governance| Corporate Transactions| Mergers & Acquisitions| Transactional Committees
Restrictive noncompetition covenants have frequently been the subject of judicial review in Delaware and regulatory scrutiny nationwide in recent years. While the Delaware judiciary has often been reluctant to enforce noncompetes, a number of recent decisions from the Delaware Supreme Court and the Delaware Court of Chancery have provided helpful guidance to employers, business partners, and transaction planners on the key components of reasonableness review, the courts’ “blue penciling” authority, and a potential alternative mechanism for protecting business interests: forfeiture-for-competition provisions.