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CALIFORNIA CORPORATE & SECURITIES LAW

California’s Hostility To Non-Compete Agreements Does Not Vitiate Forum Selection Clause

In numerous posts, I’ve discussed California’s policy against covenants not to compete as mandated by Business & Professions Code Section 16600.  From a different, more positive perspective, California could be characterized as having a strong policy in favor of employee mobility.  However Section 16600 may be characterized, it cannot be gainsaid that it’s very tough to get…

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Classifying A Coterie Of Covenants

Yesterday, I wrote about Judge Lucy Koh’s decision in SriCom, Inc. v. eBisLogic, Inc., 2012 U.S. Dist. LEXIS 131082 (N.D. Cal., Sept. 13, 2012) concerning the enforceability of a no-hire agreement.  Judge Koh mentions an earlier ruling by Judge Marilyn Hall Patel that describes five categories of covenants not to compete, Thomas Weisel Ptnrs. LLC v. BNP…

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Court Says “No Way” To No-Hire

California is known for its hostility to covenants not to compete.  Legal antipathy to these kind of agreements didn’t start here, however.  According to some, it began in Roman times.  Eugene McQuillen, Validity of Contracts in Restraint of Trade, The Am. L. Reg. 219 (April 1885).  The Dyer’s case, (1414) 2 Hen. V, fol. 5, pl.…

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No Surprises Here – California Court Won’t Enforce Non-Compete

Employers like covenants not to compete; California doesn’t.  Anyone who doubts these two propositions should read the opinion issued last Friday by the Fourth District Court of Appeal in Fillpoint, LLC v. Maas, 2012 Cal. App. LEXIS 914 (Aug. 24, 2012). The facts of the case are relatively straightforward.  When Michael Maas sold his stock in a corporation,…

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California Employers And Employees May Soon Be Able To Choose Any Forum/Law/Venue They Want So Long As It’s California

Recess Is Almost Over The California legislature is in recess until August 15 at noon (J.R. 51(a)(3)).  The last day for any bill to be passed this year will be September 9 (J.R. 61(a)(13).   This means that many bills will soon begin their final sprint to the Governor’s desk. A Bill To Watch One bill…

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TRO Issued Enjoining Breach Of Non-Compete Agreement Clauses

California Business and Professions Code Section 16600 provides that “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.”  As discussed in this legal alert, the California Supreme Court in Edwards v. Arthur Andersen, 44 Cal. 4th 937 (2008), shut the legal door on non-competition…

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