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California Supreme Court Applies "Rule of Reason" To Section 16600 Claim

Section 16600 of the California Business & Professions Code provides that except for certain statutory exceptions "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent...

contract, Non competition agreements

Court Holds That An Employer May Rely On Employee's Promise Not To Compete

In Edwards v. Arthur Andersen LLP, 44 Cal. 4th 937 (2008), the California Supreme Court held that covenants not to compete were "invalid under section 16600 in California, even if narrowly drawn, unless they fall within the applicable statutory...

Non competition agreements

Mirabile Dictu! Court Finds No Per Se Application Of Non-Compete Ban

California Business & Professions Code Section 16600 declares void "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind".  The California Supreme Court famously held that non-compete...

Non competition agreements

Court Of Appeal Upholds Injunction Restraining Enforcement Of Non-Solicitation Agreement

California Business & Professions Code Section 16600 is particularly tough on covenants not to compete declaring, with certain exceptions, "every contract by which anyone is restrained from engaging in a lawful profession trade, or business of any...

Non competition agreements

Nevada Supreme Court Addresses Nationwide Non-Compete

Given California's hostility to non-compete agreements, it is easy to lose sight of the fact that other states don't have the same attitude.  In neighboring Nevada, the courts will look to whether the restraint on competition in reasonable.  A...

Non competition agreements

Ninth Circuit Finds California's Ban On Non-Compete Agreements Can Extend To Substantial Professional Restraints

California, unlike other states, takes an absolutist view of covenants not to compete.  Section 16600 of the Business and Professions Code declares, with certain exceptions, "every contract by which anyone is restrained from engaging in a lawful...

Non competition agreements

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30172DBAB0084D3A8F39D7AF0A8E79BC.ashxKeith Paul Bishop
Partner at Allen Matkins
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