Delaware High Court Affirms Rejection of Fortiline Noncompetes

Fortiline Inc.’s noncompete agreements with former employees who went to a rival waterworks business are unenforceable, the Delaware Supreme Court ruled Tuesday, dealing a blow to the company’s efforts to recover damages.

The unanimous high court rejected the restrictive covenants in a two-sentence order, affirming a 2025 ruling by a Delaware Chancery Court judge. The full five-member tribunal heard the appeal Jan. 28.

At issue was whether Fortiline could enforce noncompetes signed by high-level employees as a condition of receiving stock options rather than as a requirement for employment. Fortiline argued that recent decisions in cases from Delaware’s ...