noncompetition clause (California) · Go Syfert
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noncompetition clause in California

13 California opinions name it 2 courts 1998–2025 3 in the last five years

The cases below were cited by California courts in a sentence that names this issue. Sides come from how each citing opinion treated the case (Syfertize flag on that citation), so a case can appear on both: that is where the law is contested. A red or yellow chip is the case's own overall treatment.

Followed or applied (6)

CaseFollowedCited
Edwards v. Arthur Andersen LLPgreen
cal · 2008 · cited in 2 California opinions naming this issue, 2009–2011
2 sentences

2011It protects ‘the important legal right of persons to engage in businesses and occupations of their choosing.’ ” (Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, 946 [ 81 Cal.Rptr.3d 282 , 189 P.3d 285 ], citations omitted.) Plain and simple, I do not think that a noncompetition clause void under California law can be enforced as an issue sanction.

2011It protects ‘the important legal right of persons to engage in businesses and occupations of their choosing.’ ” (Edwards v. Arthur Andersen LLP (2008) 44 Cal.4th 937, 946 [ 81 Cal.Rptr.3d 282 , 189 P.3d 285 ], citations omitted.) Plain and simple, I do not think that a noncompetition clause void under California law can be enforced as an issue sanction.

12
Hodge v. Superior Courtgreen
calctapp · 2006 · cited in 1 California opinions naming this issue, 2016–2016
2 sentences

2016(See Hodge v. Superior Court (2006) 145 Cal.App.4th 278, 284-285 [ 51 Cal.Rptr.3d 519 ] [no jury trial on UCL claims].) At the conclusion of the trial, the court determined as a matter of law that the noncompetition covenant was illegal in California and that U-Haul knew this at the time it inserted the noncompetition clause into its dealer contracts.

2016(See Hodge v. Superior Court (2006) 145 Cal.App.4th 278, 284-285 [ 51 Cal.Rptr.3d 519 ] [no jury trial on UCL claims].) At the conclusion of the trial, the court determined as a matter of law that the noncompetition covenant was illegal in California and that U-Haul knew this at the time it inserted the noncompetition clause into its dealer contracts.

11
In Re Marriage of Burlinigreen
calctapp · 1983 · cited in 1 California opinions naming this issue, 2014–2014
2 sentences

2014(In re Marriage of Kozen (1986) 185 Cal.App.3d 1258, 1262 [ 230 Cal.Rptr. 304 ]; In re Marriage ofBurlini (1983) 143 Cal.App.3d 65, 70 [ 191 Cal.Rptr. 541 ].) It therefore follows that, if an ongoing marital business is being awarded to one spouse, and if the value of that business includes goodwill, a family court should have the power, pursuant to Family Code section 2553, to issue a noncompetition order so that the value of that asset is preserved, just as a noncompetition clause in a business purchase and sale agreement is designed to protect the value of the asset purchased.

2014(In re Marriage of Kozen (1986) 185 Cal.App.3d 1258, 1262 [ 230 Cal.Rptr. 304 ]; In re Marriage ofBurlini (1983) 143 Cal.App.3d 65, 70 [ 191 Cal.Rptr. 541 ].) It therefore follows that, if an ongoing marital business is being awarded to one spouse, and if the value of that business includes goodwill, a family court should have the power, pursuant to Family Code section 2553, to issue a noncompetition order so that the value of that asset is preserved, just as a noncompetition clause in a business purchase and sale agreement is designed to protect the value of the asset purchased.

11
Monogram Industries, Inc. v. Sar Industries, Inc.green
calctapp · 1976 · cited in 1 California opinions naming this issue, 2014–2014
2 sentences

2014“Where a covenant not to compete is executed as an adjunct of a sale of a business there is an inference that the business had a ‘goodwill’ and that it was transferred.” (Monogram Industries, Inc. v. Sar Industries, Inc. (1976) 64 Cal.App.3d 692, 701 [ 134 Cal.Rptr. 714 ].) Indeed, noncompetition agreements will not be enforced if a close examination of the purchase and sale agreement demonstrates that no goodwill was included in the sale.

2014“Where a covenant not to compete is executed as an adjunct of a sale of a business there is an inference that the business had a ‘goodwill’ and that it was transferred.” (Monogram Industries, Inc. v. Sar Industries, Inc. (1976) 64 Cal.App.3d 692, 701 [ 134 Cal.Rptr. 714 ].) Indeed, noncompetition agreements will not be enforced if a close examination of the purchase and sale agreement demonstrates that no goodwill was included in the sale.

11
Kozen v. Kozengreen
calctapp · 1986 · cited in 1 California opinions naming this issue, 2014–2014
2 sentences

2014(In re Marriage of Kozen (1986) 185 Cal.App.3d 1258, 1262 [ 230 Cal.Rptr. 304 ]; In re Marriage ofBurlini (1983) 143 Cal.App.3d 65, 70 [ 191 Cal.Rptr. 541 ].) It therefore follows that, if an ongoing marital business is being awarded to one spouse, and if the value of that business includes goodwill, a family court should have the power, pursuant to Family Code section 2553, to issue a noncompetition order so that the value of that asset is preserved, just as a noncompetition clause in a business purchase and sale agreement is designed to protect the value of the asset purchased.

2014(In re Marriage of Kozen (1986) 185 Cal.App.3d 1258, 1262 [ 230 Cal.Rptr. 304 ]; In re Marriage ofBurlini (1983) 143 Cal.App.3d 65, 70 [ 191 Cal.Rptr. 541 ].) It therefore follows that, if an ongoing marital business is being awarded to one spouse, and if the value of that business includes goodwill, a family court should have the power, pursuant to Family Code section 2553, to issue a noncompetition order so that the value of that asset is preserved, just as a noncompetition clause in a business purchase and sale agreement is designed to protect the value of the asset purchased.

11
Auberry Union School District v. Raffertygreen
calctapp · 1964 · cited in 1 California opinions naming this issue, 1998–1998
2 sentences

1998(See Auberry Union School Dist. v. Rafferty (1964) 226 Cal.App.2d 599, 602-603 [ 38 Cal.Rptr. 223 ].) However, in this case, it was necessary for the trial court to determine as a *894 preliminary matter whether the particular noncompetition clause used by Hunter would be enforceable if required of California employees.

1998(See Auberry Union School Dist. v. Rafferty (1964) 226 Cal.App.2d 599, 602-603 [ 38 Cal.Rptr. 223 ].) However, in this case, it was necessary for the trial court to determine as a *894 preliminary matter whether the particular noncompetition clause used by Hunter would be enforceable if required of California employees.

11

Distinguished, questioned or overruled (0)

CaseNegativeCited
No negative-treatment citations attached to this issue in California. Read the followed side critically anyway.

Also cited on this issue (19)

CaseCitedYears
Laabs v. City of Victorville green
calctapp · 2008
1 sentence

2025(Laabs v. City of Victorville, supra, 163 Cal.App.4th at p. 1258 .) C.

12025–2025
Strategix, Ltd. v. Infocrossing West, Inc. green
calctapp · 2006
1 sentence

2023Because the noncompetition clause was tied directly to the sale of the business, we conclude the noncompetition agreement falls within the section 16601 exception.6 A noncompetition clause connected to the sale of goodwill of business is meant to “prevent the seller from unfairly depriving the buyer of the full value of its acquisition, including its goodwill.” (Strategix, supra, 142 Cal.App.4th at p. 1073 .) “ ‘The customers of a business are an essential part of its goodwill.

12023–2023
Advanced Bionics Corp. v. Medtronic, Inc. green
cal · 2003
1 sentence

2023(Advanced Bionics, supra, 29 Cal.4th at pp. 700–701.) After the employee resigned and accepted employment with a California company, the California employer filed a complaint for declaratory relief in a California court, alleging the noncompetition clause was void because it violated California law and public policy.

12023–2023
Chevron U.S.A., Inc. v. Workers' Compensation Appeals Board green
cal · 1999
1 sentence

2020Appeals Bd. (1999) 19 Cal.4th 1182, 1195 .) The plaintiff in Edwards sought to invalidate a noncompetition clause in his employment agreement, and we “limited our review” to whether 34 IXCHEL PHARMA, LLC v. BIOGEN, INC.

12020–2020
In Re the Marriage of Fischer green
coloctapp · 1992
1 sentence

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

12014–2014
Cesar v. Sundelin green
massappct · 2012
2 sentences

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

12014–2014
Vinci v. Waste Management, Inc. green
calctapp · 1995
1 sentence

2014Vinci clearly and correctly held that, when a corporate entity is injured by a third party, the sole shareholder of the corporate entity does not have standing to bring an action for redress of that injury because "[t]he remedy lies with the corporation, not the shareholder, even if the injured shareholder is the sole shareholder." (Vinci v. Waste Management, Inc., supra, 36 Cal.App.4th at p. 1815 .) Plaintiffs do not dispute that, if IGC was the contracting party in whose favor the noncompetition clause operated and who was injured by any alleged breaches of contract by Mark, Vinci would cont

12014–2014
In Re Marriage of Quay green
calctapp · 1993
1 sentence

2014(Quay, supra, 18 Cal.App.4th at p. 968 .) Because the future effects of a noncompetition clause imposed in connection with the sale or assignment of a community asset are part of the equation for determining the value of the community asset upon dissolution, it does not constitute a division of future earning capacity.

12014–2014
Lord v. Lord green
me · 1983
1 sentence

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

12014–2014
Carr v. Carr green
idahoctapp · 1985
2 sentences

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

12014–2014
Holland v. Holland green
wyo · 2001
2 sentences

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

2014Decisions from our sister states *1252 are largely in accord. 5 ( Fischer, supra, 834 P.2d 270 ; Lord v. Lord (Me. 1983) 454 A.2d 830 {Lord); Holland v. Holland (2001) 2001 WY 113 [ 35 P.3d 409 ]; Cesar v. Sundelin (2012) 81 Mass.App.Ct. 721 [ 967 N.E.2d 171 ] {Cesar); Carr v. Carr (1985) 108 Idaho 684 [ 701 P.2d 304 ] {Carr).) Thus, for example, in Carr , the parties owned and operated a truckstop, which was primarily under the husband’s management.

12014–2014
Morlife, Inc. v. Perry green
calctapp · 1997
1 sentence

2009Because of our conclusions, it is unnecessary to address these separate alleged deficiencies. 10 The injunction here barred Advisers from “[d]irectly or indirectly soliciting any [current] TRG [customers] ... to transfer any securities account or relationship from TRG to [Advisers] or any broker-dealer or registered investment advisor other than TRG.” The contractual clause Edwards concluded was unenforceable was a noncompetition clause providing the employee was barred from “ ‘performing] professional services of the type you provided for any [customer for] which you worked,’ ” and from “ ‘so

12009–2009
Robinson v. Jardine Insurance Brokers International Ltd. green
cand · 1994
1 sentence

2008(N.D.Cal. 1994) 856 F.Supp. 554 (Robinson), where a federal district court judge (not an appellate court) concluded a former employee would suffer more harm than his employer if the court denied the former employee’s request for a preliminary injunction prohibiting the employer from enforcing a noncompetition clause in the employment contract.

12008–2008
Moncharsh v. Heily & Blase green
cal · 1992
1 sentence

2005(Moncharsh v. Heily & Blase, supra, 3 Cal.4th at p. 11 .) “ ‘[Arbitrators do not exceed their powers merely [by] assigning] an erroneous reason for their decision.’ [Citations.]” (Id. at p. 28.) Nor can an award be vacated because the arbitrator “reached an erroneous decision.” (Ibid.) In this case, the trial court did exactly what the Supreme Court in Moncharsh said it could not do: review the merits of the arbitrator’s findings concerning the applicable law and the interpretation and enforceability of the contract’s noncompetition clause.

12005–2005
Vacco Industries, Inc. v. Van Den Berg green
calctapp · 1992
1 sentence

2001Thus, the covenant not to compete was unenforceable and void. (161 Cal.App.3d at pp. 288, 291-292.) *906 Vacco Industries, Inc. v. Van Den Berg, supra, 5 Cal.App.4th 34 , another case from this division, demonstrates when a noncompetition clause is enforceable.

12001–2001
Nedlloyd Lines B v. v. Superior Court green
cal · 1992
1 sentence

1998Indeed, the mere fact that one of the parties to the contract is incorporated in the chosen state is sufficient to support a finding of “substantial relationship,” and the mere fact that one of the parties resides in the chosen state provides a “reasonable basis” for the parties’ choice of law. ( Nedlloyd, supra, 3 Cal.4th at pp. 467-468.) The parties also agree that California and Maryland are “potentially concerned” states with diametrically opposed laws regarding the enforceability of Hunter’s noncompetition clause.

11998–1998
North American Asbestos Corp. v. Superior Court green
calctapp · 1986
1 sentence

1998(See Sommer v. Gabor, supra, 40 Cal.App.4th at p. 1467 ; North American Asbestos Corp. v. Superior Court, supra, 180 Cal.App.3d at p. 905 .) 14 As we have noted, with certain limited exceptions, California law renders void such provisions (§ 16600), while *900 Maryland law permits them so long as they are reasonable in scope and duration (Holloway v. Faw, Casson & Co., supra, 572 A.2d 4th at p. 515; Ruhl v. F. A. Bartlett Tree Expert Co., supra, 225 A.2d at p. 291 ).

11998–1998
Ruhl v. F. A. Bartlett Tree Expert Co. green
md · 1967
1 sentence

1998(See Sommer v. Gabor, supra, 40 Cal.App.4th at p. 1467 ; North American Asbestos Corp. v. Superior Court, supra, 180 Cal.App.3d at p. 905 .) 14 As we have noted, with certain limited exceptions, California law renders void such provisions (§ 16600), while *900 Maryland law permits them so long as they are reasonable in scope and duration (Holloway v. Faw, Casson & Co., supra, 572 A.2d 4th at p. 515; Ruhl v. F. A. Bartlett Tree Expert Co., supra, 225 A.2d at p. 291 ).

11998–1998
Sommer v. Gabor green
calctapp · 1995
1 sentence

1998(See Sommer v. Gabor, supra, 40 Cal.App.4th at p. 1467 ; North American Asbestos Corp. v. Superior Court, supra, 180 Cal.App.3d at p. 905 .) 14 As we have noted, with certain limited exceptions, California law renders void such provisions (§ 16600), while *900 Maryland law permits them so long as they are reasonable in scope and duration (Holloway v. Faw, Casson & Co., supra, 572 A.2d 4th at p. 515; Ruhl v. F. A. Bartlett Tree Expert Co., supra, 225 A.2d at p. 291 ).

11998–1998

Statutes the citing opinions construe

CA § Cal. Civil Code § 3426 (3)

Counted by distinct opinions that both name this issue and are annotated to the section; sections every opinion cites regardless of issue are not filtered here, so read the counts against the total above.

Where else courts name it

NY 15 (1981–2020) CA 13 (1998–2025) OH 12 (1985–2008) MI 11 (1978–2026) LA 10 (1974–2017) IL 9 (1980–2013) PA 6 (1989–2025) TX 6 (1978–2023) IN 5 (1985–2006) MA 5 (1982–1999) GA 5 (1997–2013) KS 5 (1977–2022) CT 4 (1999–2006) FL 4 (1988–2021) CO 4 (1966–2011) AL 4 (1988–2005) SC 3 (1985–1998) NJ 3 (1977–2007) AZ 3 (2010–2014) MD 2 (1989–1991) VA 2 (2005–2010) IA 2 (1989–2018) OR 2 (1973–1987) ID 2 (1985–2008)

Opinions by the citing court's state. A doctrine retained in one state and abandoned in another shows up here as a year span that stalls.

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