Litigation partner Renée Dudek spoke with American Lawyer’s Litigation Daily about Delaware's evolving stance on the enforceability of noncompetes, specifically how Delaware courts are approaching restrictive covenants.
“Delaware seems to be balancing the strict contractarian approach it applies broadly with sensitivity to the elements that make restrictive covenants unique among contracts, with an aim of providing predictability both to parties who want restrictive covenants and those who are subject to them,” Dudek explained.
“I believe that's true of a lot of other jurisdictions. In Delaware, in particular, because it's such a hub of corporate and commercial law, it is extra important to Delaware and to litigants who select Delaware as the forum for their disputes—or even as the source of law controlling their disputes,” she added. “Even if the actual courts aren't being used for that contract, there needs to be predictability.”