Cantor Fitzgerald Says Non-Compete Ruling Will ‘Wreak Havoc’

A Delaware judge’s opinion finding Cantor Fitzgerald LP owes six former partners nearly $9 million—which prompted additional lawsuits over the firm’s non-compete agreements—threatens to “wreak havoc” on similar contracts, a lawyer for the company argued Wednesday.

That decision “creates brand-new law,” David Paul, Cantor’s co-head of litigation, said in oral arguments before the Delaware Supreme Court.

Delaware’s Court of Chancery found Cantor’s limited partnership agreements provided additional payments under certain conditions that must be met, which included non-compete provisions. But instead of enforcing those conditions, the court “imposed the reasonableness test reserved for prohibiting employment, such ...