Delaware's top court rules employers can't recover damages for unreasonable noncompete agreements, upholding strict enforceability standards.

On February 10, 2026, the Delaware Supreme Court ruled that employers cannot recover damages for breaches of restrictive covenants—like noncompetes and nonsolicitations—if those agreements are found to be unreasonable or overly broad, even when seeking only monetary compensation. The court affirmed a lower court’s decision that such covenants must still pass reasonableness review regardless of the remedy sought, rejecting efforts to bypass scrutiny by avoiding injunctions. The ruling, which involved Fortiline and its parent company Patriot Supply Holdings, emphasized that competition-restricting agreements implicate public policy and must be narrowly tailored in scope, duration, and geography. The decision is the second in two weeks from Delaware’s highest court reinforcing strict standards for enforceability in equity-based employment agreements.