Simpson Thacher Secures Reversal for North American Fire in Delaware Supreme Court
On February 3, 2026, Simpson Thacher secured a victory for North American Fire Ultimate Holdings LP (“North American Fire”) when the Delaware Supreme Court reversed and remanded a Court of Chancery judgement that had dismissed North American Fire’s complaint against a former employee for violating restrictive covenants found in an Incentive Unit Grant Agreement. In its order, the Court adopted the Firm’s position that consideration is measured at the time of contract formation, not at the time of enforcement. Applying Newell Rubbermaid Inc. v. Storm, the Court held that while the value of the Incentive Units was “somewhat contingent,” it was not illusory at the time of formation and therefore constituted adequate consideration to support the Agreement.
The Simpson Thacher team included Michael Garvey, Alison Sher, Ryerson Symons, Nicole Palmadesso and Sarah Heintz.
The reversal has been covered by publications including Law360 and Delaware Business Court Insider.