Chancery Court says HKA’s post-exit restrictions were too broad for enforcement
Delaware’s Court of Chancery, on December 16, 2025, tossed key HKA claims, ruling its non-compete and “encouragement” non-solicit clause to be facially overbroad and unenforceable.
In HKA Global, LLC v. Christopher Beirise, Hansell Pasco, Tanner Courrier, and Accuracy US, LLC), HKA alleged that three former partners planned to resign and join Accuracy US, a competitor, and that they sought to recruit HKA employees to join them.
The story began with HKA’s July 2019 acquisition of Kenrich under a Stock Purchase Agreement. As part of that period, Christopher Beirise entered an employment agreement with The Kenrich Group, and a Confidentiality, Non-Competition and Non-Solicitation Agreement (the Restrictive Covenant Agreement, or RCA) was attached. The RCA is governed by Delaware law and imposed post-employment restrictions on Beirise, including a 12-month non-competition provision and a 12-month non-solicitation provision.
The court found the RCA’s non-compete unenforceable based on its breadth. The clause barred Beirise, for 12 months after termination, from directly or indirectly engaging in, competing with, or undertaking any planning to compete with “all or any portion of the business” carried out by any “Group Company” in the United States. The RCA defined “Group Company” to include the company and any of its direct or indirect parent or subsidiary entities. The court held that this structure...
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