Court Square Links Non-Compete Case to Cantor Fitzgerald Ruling

Court Square Capital Management LP on Wednesday sought to tie its refusal to pay carried interest to an ex-partner to a Delaware Supreme Court opinion finding Cantor Fitzgerald LP partners forfeited millions in leaving for a competitor.

The high court already has found that forfeiture-for-competition provisions, rather than stifling competition, give departing employees a choice about what to do after they leave, Court Square’s attorney, Michael McGinley of Dechert LLP, told the state’s high court during oral arguments Wednesday.

Court of Chancery Chancellor Kathaleen St. Jude McCormick ruled last December that Court Square wrongly withheld $5 million in carried interest ...