Building Components Inc News Today

In Kodiak Building Partners, LLC v. Adams, 2022 Del. Ch. LEXIS 288 (October 6, 2022) (Kodiak), the Court of Chancery denied the plaintiff’s motion for a preliminary injunction to...

The Delaware Court of Chancery (the Court) has raised eyebrows with a recent decision, in the case of Kodiak Building Partners, LLC v. Adams, to strike down a noncompetition covenant...

Kodiak Building Partners, LLC v. Philip D. Adams, C.A. No., the Delaware Court of Chancery found that a restrictive covenant entered into in connection with an asset purchase agreement was unenforceable.

M&A attorneys representing buyers, and their private equity and strategic clients, have long felt comfortable that the courts would uphold restrictive covenants in an acquisition. Even...

M&A attorneys representing buyers, and their private equity and strategic clients, have long felt comfortable that the courts would uphold…

Kodiak Building Partners v. Adams challenges the assumption restrictive covenants entered in connection with a sale of business will be enforceable. The Delaware Court of Chancery limited this economic interest to the goodwill and information obtained through the acquisition.