Delaware High Court Asked to Clarify Ruling on Noncompete Pacts

A federal appeals court in Chicago wants the Delaware Supreme Court to answer two questions regarding non-compete agreements requiring forfeiture of financial bonuses when an ex-employee starts working for a competitor.

Earlier this year, the Delaware high court ruled that Cantor Fitzgerald LP properly denied $9 million to six former partners under non-compete contracts. That reversed a lower court’s decision cited by other former Cantor partners who have claimed CEO Howard Lutnick and other Cantor executives misuse the agreements to deny bonuses and equity payments.

“What we cannot discern with confidence is whether the holding in Cantor Fitzgerald applies outside ...