Delaware Court Refuses to Imply Non-Compete Against Ex-Member of LLC
Occasionally, in rendering an opinion, the courts provide true gems worthy of quotation. Here's one from a January 13, 2014 opinion coming out of the Delaware Chancery Court:
I just love it.
In this case, the plaintiffs’ alleged that [the defendant] withdrew from the parties' LLC, and lied about his intention to open a competing Italian grocery in order to deceive the Plaintiffs and to induce their reliance on his misrepresentations, a lie in which [the defendant's] brother, Frank, participated; and that under cover of this lie, the brothers brought that competing entity into existence.
Basically, the Court was unwilling to infer or imply a noncompete agreement when the parties never agreed to it in the first instance.