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Court Of Chancery Refines Choice Of Law Analysis For Employment Agreements

Posted In Choice of Law

Nuvasive Inc. v. Miles, C.A. 2017-0720-SG (September 28, 2018)

Delaware will enforce non-compete agreements against former employees, but generally California law bars such agreements. This decision explains how to determine which state’s law applies by looking to how important is the public policy of each state on the issue before the Court. Because California does enforce a choice of Delaware law when that choice is the subject of negotiation, not coercion, the Delaware choice of law was upheld. Note that under a different California statue then in force, a contrary result was reached in the Ascension Insurance Holdings v.Underwood case.