Delaware, where more than half of U.S. public companies are incorporated, has done much to drive the development of corporate governance. As a result, “Delaware’s courts have led the way, which is not surprising given the crucial role the state’s judiciary plays under what Chief Justice Leo Strine has described as the ‘Delaware Model’ of corporation law.” Look no further than the Delaware Court of Chancery’s own website which says it is “widely recognized as the nation’s preeminent forum for the determination of disputes involving the internal affairs of the thousands upon thousands of Delaware corporations and other business entities through which a vast amount of the world’s commercial affairs is conducted.” Consequently, rulings by the Delaware Chancery Court are highly influential and may impact the reasoning of other state and federal courts. Three recent noncompete decisions by the Chancery Court potentially signal a significant shift against noncompetes involving sophisticated commercial parties.
Continue Reading Are Three Decisions a Trend? The Delaware Chancery Court’s Turn Against Noncompetes