Supreme Court of Delaware

LKQ Corporation v. Robert Rutledge

December 18, 2024

Summary

The Court answered the first certified question by holding that the employee choice doctrine is not limited to limited partnership agreements and applies to forfeiture-for-competition provisions in restricted stock unit agreements. Such provisions generally are not subject to reasonableness review because they condition receipt or retention of a benefit rather than restrict an employee's ability to work. The Court did not answer the second certified question because the first answer resolved the issue presented. No separate opinions were filed.