A recent decision by the Delaware Court of Chancery highlights some of the perils employers face when attempting to enforce post-employment covenants, such as confidentiality and nonsolicit provisions. In AlixPartners v. Mori, No. 2019-0392-KSJM (Del. Ch. Apr. 14, 2022), the plaintiffs sued their former employee, Giacomo Mori, under his partnership agreement and various other agreements governing his equity compensation. The plaintiffs also brought claims for misappropriation of trade secrets and conversion.

Background

Mori, an Italian citizen residing in Italy, worked for his employer (AlixPartners) for more than a decade. In 2019, AlixPartners notified Mori that he was in violation of certain company policies. Mori met with his employer and the parties discussed the idea of a mutually agreeable separation of employment. The discussions lasted a few weeks but did not result in an agreement and Mori was terminated.