Delaware Supreme Court Hears Harvey Trade Secret Appeal
The court heard arguments from the Harvey family as they challenge a lower court ruling involving trade secret misappropriation.
Updated on Oct. 28, 2026 in Public Companies
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The Delaware Supreme Court heard approximately 50 minutes of oral arguments in an appeal involving Mike Harvey and two of his nephews. The family is seeking to overturn a Delaware Chancery Court ruling that previously ordered them to pay nearly $70 million.
Why it matters
The case centers on allegations that the Harveys breached restrictive covenants and misappropriated trade secrets following the sale of their company. The legal outcome carries significant weight for the enforcement of non-compete and confidentiality agreements in corporate acquisitions.
The dispute follows the $450 million sale of Enviro Tech Chemical Services Inc. to Arxada Holdings NA. A lower court previously ordered the Harvey family to pay nearly $70 million in damages.
The players
Mike Harvey
He is the founder of Enviro Tech Chemical Services Inc. and a defendant in the ongoing trade secrets litigation.
Enviro Tech Chemical Services Inc.
This is the company founded by Mike Harvey that was later sold to Arxada Holdings NA for $450 million.
Arxada Holdings NA
This corporation acquired Enviro Tech Chemical Services Inc. and is a party in the lawsuit regarding trade secret misappropriation.
The details
The litigation alleges that Mike Harvey and his nephews downloaded massive amounts of information from the company after it was sold to Arxada Holdings NA. The appeal represents their attempt to reverse the financial penalties imposed by the Delaware Chancery Court.
Timeline
The Delaware Supreme Court heard oral arguments on Wednesday, October 28, 2026.
Market Landscape
This case highlights the tensions inherent in the enforceability of restrictive covenants during post-acquisition integration. The ongoing legal battle illustrates how disputes over intellectual property can follow even high-value corporate exits.
The ruling will clarify how strictly Delaware courts interpret restrictive covenants and trade secret protections after a company is sold. This decision may influence the terms and conditions that future business owners negotiate during corporate sales.
The takeaway
Disputes over trade secrets can lead to significant financial liabilities long after a company has changed hands. Business owners should ensure that post-sale restrictive covenants are clearly defined and meticulously followed to avoid lengthy legal challenges.
Further reading
For more background on business disputes in the state, visit Delaware Public Companies.
Source note: This article includes information reported by Bloomberglaw.
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