In a recent Delaware Chancery Court case, the court declined to grant a preliminary injunction to enforce a noncompetition covenant against a California resident and former employee, finding the covenant would be unenforceable under California law, despite an explicit choice of law provision in the relevant contract designating Delaware law as the governing law of the contract. This serves as a reminder that choice of law provisions cannot save otherwise unenforceable noncompetes. For more information, please see our Covington E-Alert on the case, which is available here.
