Wright v. SLWM, LLC

CourtCourt of Chancery of Delaware
DecidedJune 25, 2025
DocketC.A. No. 2024-1339-JTL
StatusPublished

This text of Wright v. SLWM, LLC (Wright v. SLWM, LLC) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wright v. SLWM, LLC, (Del. Ct. App. 2025).

Opinion

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

JEFFREY WRIGHT, ) ) Plaintiff, ) ) v. ) C.A. No. 2024-1339-JTL ) SLWM, LLC, ) ) Defendant. )

OPINION GRANTING MOTION TO COMPEL

Date Submitted: May 19, 2025 Date Decided: June 25, 2025

Seth A. Niederman, FOX ROTHSCHILD LLP, Wilmington, Delaware; Adam Wolek, FOX ROTHSCHILD LLP, West Palm Beach, Florida; Clarissa Sullivan, FOX ROTHSCHILD LLP, Philadelphia, Pennsylvania; Counsel for Plaintiff Jeffrey Wright.

David S. Eagle, KLEHR HARRISON HARVEY BRAZNBURG LLP, Wilmington, Delaware; Bonita L. Stone, KATTEN MUCHIN ROSEN LLP, Chicago, Illinois; Counsel for Defendant SLWM, LLC.

LASTER, V.C. The plaintiff served interrogatories and requests for production of documents.

The defendant bobbed and weaved, relying on a host of general objections. The parties

met and conferred, but made little progress. The plaintiff moved to compel. This

decision grants the motion. By separate order, the court will appoint a discovery

facilitator to help the parties develop and implement a reasonable process for

collecting, reviewing, and producing documents.

I. FACTUAL BACKGROUND

The facts are drawn from the submissions made in connection with the motion

to compel.1 The following discussion does not comprise findings of fact in the post-

trial sense, but represents how the record appears at this preliminary stage.

A. The Employment Agreements

In February 2010, Jeffrey Wright started work at Webb-Mason, Inc., a

predecessor to SLWM, Inc. (the “Company”). Wright sold branded print and

promotional products.

When Wright joined the Company, he signed an employment agreement

containing restrictive covenants (the “2010 Agreement”). In 2022, he signed an

“Employee Confidentiality, Non-Competition, Non-Solicitation and Assignment of

1 Citations in the form “Mot. ¶___” refer to paragraphs in Wright’s motion to

compel. Citations in the form “Opp. ¶___” refer to paragraphs in the opposition to the motion to compel. Citations in the form “Compl. ¶ ___” refer to paragraphs of the operative complaint. Citations in the form “Marchetti Dec. ¶ ___” refer to paragraphs in the Declaration of Michael Marchetti. Citations to “[Filing] Ex. [Number]” refer to exhibits submitting with filings. Work Product Agreement” (the “2022 Agreement”). In 2023, he signed an

“Amendment to Employment Agreement” (the “2023 Agreement”) that changed his

commission schedule. In 2024, Wright signed a letter agreement that changed his

title and commission schedule (the “2024 Agreement”).

In the waning days of summer 2024, Wright contacted one of the Company’s

competitors about possible employment. In September, he spoke with the Company’s

CEO about his intent to resign and continue working in the industry. The next day,

Wright formally resigned. In his resignation email, he stated he was “keenly aware

of the Non-compete, Non-solicit, and all facets.” Dkt. 44 Ex. L.

Wright asked to be released from the 2022 Agreement, and he offered to agree

to restrictions to avoid competition. The Company responded that Wright remained

bound by the 2010 Agreement and the 2022 Agreement. Wright countered that the

2024 Agreement superseded all prior agreements.

B. This Litigation

On December 23, 2024, Wright filed this lawsuit. He seeks declaratory relief

establishing that the restrictive covenants do not bind him and injunctive relief

barring the Company from enforcing them. The court granted expedition and

scheduled a preliminary injunction hearing.

On January 23, 2025, after briefing and argument, the court granted a

preliminary injunction in Wright’s favor. The preliminary injunction prevents the

Company from “enforcing or attempting to enforce restrictive covenants . . . until

2 further order of the Court or the resolution of the underlying action, whichever occurs

first.” Dkt. 54. ¶¶ 2–3.

C. The Discovery Dispute

The preliminary injunction did not end the case, and the parties continue to

litigate. On February 7, 2025, Wright served his First Set of Requests for Documents

and First Set of Interrogatories. The deadline to respond was March 9. On March 5,

the Company asked for a twenty-one-day extension. Wright granted the Company

that courtesy.

On March 31, 2025, the Company served its responses. They consisted of a host

of objections. The Company did not respond substantively to any of Wright’s requests.

The Company did not produce any documents.

On April 10, 2025, Wright sent the Company a deficiency letter. The parties

met and conferred on April 15 and April 17. The Company agreed to respond to only

a few requests.

Later on April 17, 2025, Wright emailed the Company a summary of his

understanding of the agreements reached at the meet-and-confer session. The email

highlighted the remaining deficiencies. Wright asked for a response by April 24. The

Company did not meet that deadline, citing a scheduling conflict. On April 28, the

Company provided its own summary of the parties’ agreements and remaining issues.

The two sides differed about what took place.

3 On May 6, 2025, Wright moved to compel. He seeks supplemental responses to

his requests and interrogatories. Wright also asks for an order directing the Company

to identify custodians and conduct searches.

II. LEGAL ANALYSIS

“[P]retrial discovery rules are to be afforded broad and liberal treatment.” Levy

v. Stern, 687 A.2d 573 (Del. 1996) (TABLE). “The scope of discovery pursuant to Court

of Chancery Rule 26(b) is broad and far-reaching[.]” Cal. Pub. Emps. Ret. Sys. v.

Coulter, 2004 WL 1238443, at *1 (Del. Ch. May 26, 2004) (cleaned up). “[T]he spirit

of Rule 26(b) calls for all relevant information, however remote, to be brought out for

inspection not only by the opposing party but also for the benefit of the Court[.]” Boxer

v. Husky Oil Co., 1981 WL 15479, at *2 (Del. Ch. Nov. 9, 1981). “Discovery is called

that for a reason. It is not called hide the ball.” Twitter, Inc. v. Musk, 2022 WL

3591142, at *1 (Del. Ch. Aug. 23, 2022) (cleaned up).

Rule 26(b)(1) states:

Parties may obtain discovery regarding any non-privileged matter that is relevant to any party's claim or defense and proportional to the needs of the case, including the existence, description, nature, custody, condition and location of any documents, electronically stored information, or tangible things and the identity and location of persons having knowledge of any discoverable matter. It is not ground for objection that the information sought will be inadmissible at the trial.

Ct. Ch. R. 26(b)(1). The burden therefore is on the objecting party to show why and

how the information requested is privileged or otherwise improperly requested.” Van

de Walle v. Unimation, Inc., 1984 WL 8270, at *2 (Del. Ch. Oct. 15, 1984).

4 For that purpose, generic and formulaic objections are insufficient.2

For an objecting party to carry its burden, the objection must be specific, the party making it must explain why it applies on the facts of the case to the request being made, and if the party is providing information subject to the objection, the party must articulate how it is applying the objection to limit the information it is providing.3

Objections must be “plain enough and specific enough so that the Court can

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