Delaware Refuses to Blue Pencil Overbroad Restrictive Covenants Following Business Acquisition

Short summary

The Delaware Court of Chancery refused to blue-pencil overbroad restrictive covenants in BluSky Restoration Contractors v. Robbins, declaring noncompete and non-solicitation agreements unenforceable in their entirety. The court found the geographic scope and duration exceeded the employer's legitimate business interests and consideration was insufficient. This signals Delaware may be shifting toward a 'red-pencil' approach, urging employers to draft restrictions narrowly.

• •Delaware Court of Chancery refused to blue-pencil overbroad restrictive covenants
• •Noncompete and non-solicitation agreements declared entirely unenforceable
• •Employers should draft restrictions narrowly to match competitive space

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