# Against: 17 Sourced Claims, Contested Facts & Evidence

Holdings that reject the proposition, each with the opinion cited.

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### Noncompete covenants in employment contracts are enforceable under Section 16601 when executed in connection…

Id: claim_388bed7298e6ae6bb49b2153
Parent: topic_cU1gSBi8vjLvjozj1rwP
Depth: 1

Noncompete covenants in employment contracts are enforceable under Section 16601 when executed in connection with the sale of a business or ownership interest.

Labels: Source-linked, Medium, investigate

### The California Court of Appeal held in Haight, Brown & Bonesteel v.

Id: claim_ab03ccdecd8d8e207e3416d6
Parent: topic_cU1gSBi8vjLvjozj1rwP
Depth: 1

The California Court of Appeal held in Haight, Brown & Bonesteel v. Superior Court (1991) that an agreement compensating a firm for the loss of business when a withdrawing partner takes clients is not void as against public policy.

Labels: Source-linked, Medium, investigate

### The California Supreme Court established in Gordon v.

Id: claim_f253bcd67b5ebe7f478407a1
Parent: topic_cU1gSBi8vjLvjozj1rwP
Depth: 1

The California Supreme Court established in Gordon v. Landau (1958) that customer list non-solicitation covenants for route salesmen are enforceable.

Labels: Inferred, Low, investigate

### California Business and Professions Code § 16600 generally voids contracts that restrain individuals from eng…

Id: claim_f389b0008f4bffcccb24a129
Parent: topic_cU1gSBi8vjLvjozj1rwP
Depth: 1

California Business and Professions Code § 16600 generally voids contracts that restrain individuals from engaging in a lawful profession, trade, or business, but statutory and judicial exceptions exist.

Labels: Source-linked, Low, investigate

#### In South Bay Radiology Medical Group v.

Id: claim_0a4b86ea0b20b0bffa12b204
Parent: claim_f253bcd67b5ebe7f478407a1
Depth: 2

In South Bay Radiology Medical Group v. Asher (1990), the California Court of Appeal affirmed that a partnership clause conditioning capital account and goodwill payments on a withdrawing medical partner’s refraining from competing in the county is valid under Section 16602.

Labels: Source-linked, Medium, investigate

#### The California Court of Appeal in Blue Mountain Enterprises, LLC v.

Id: claim_509a8061282a2c4b145d74d3
Parent: claim_388bed7298e6ae6bb49b2153
Depth: 2

The California Court of Appeal in Blue Mountain Enterprises, LLC v. Owen (2022) ruled that a customer non-solicitation covenant in a CEO's employment agreement is enforceable under Section 16601 following a corporate reorganization.

Labels: Source-linked, Medium, investigate

#### The Ninth Circuit Court of Appeals held in IBM v.

Id: claim_737076365609f41098b91ed6
Parent: claim_ab03ccdecd8d8e207e3416d6
Depth: 2

The Ninth Circuit Court of Appeals held in IBM v. Bajorek (1999) that a clawback provision does not violate Section 16600 because it does not stop the employee from working for a competitor, but rather requires them to pay for the privilege.

Labels: Inferred, Medium, investigate

#### The Delaware Court of Chancery noted in 2019 that under Labor Code § 925(e), California's public policy again…

Id: claim_7c5277471a8713d6ecbbed7a
Parent: claim_ab03ccdecd8d8e207e3416d6
Depth: 2

The Delaware Court of Chancery noted in 2019 that under Labor Code § 925(e), California's public policy against noncompetes is subordinate to party autonomy when the employee is represented by legal counsel.

Labels: Source-linked, Medium, investigate

#### In Vacco Industries, Inc.

Id: claim_868c79d8042cf5f86108fa0f
Parent: claim_388bed7298e6ae6bb49b2153
Depth: 2

In Vacco Industries, Inc. v. Van Den Berg (1992), the California Court of Appeal upheld a noncompetition agreement binding a minority shareholder (3%) who sold his equity concurrently with a buyout.

Labels: Source-linked, Medium, investigate

#### The California Court of Appeal held in Loral Corp.

Id: claim_a80741f3eb45f698b0306fdf
Parent: claim_ab03ccdecd8d8e207e3416d6
Depth: 2

The California Court of Appeal held in Loral Corp. v. Moyes (1985) that a restriction on soliciting former co-workers is not a significant restraint on engaging in a profession and is not void on its face under Section 16600.

Labels: Source-linked, Medium, investigate

#### The California Supreme Court held in Swenson v.

Id: claim_dc848809f7b071734a097443
Parent: claim_f253bcd67b5ebe7f478407a1
Depth: 2

The California Supreme Court held in Swenson v. File (1970) that a noncompetition agreement among accounting partners is not entirely void and is enforceable to the extent reasonably necessary to protect the plaintiff's interest within the territory permitted by Section 16602.

Labels: Source-linked, Medium, investigate

#### The California Court of Appeal, Second District, held in 1976 that it is unfair for a seller of business good…

Id: claim_e6f5d3e0205e447b9cb3068e
Parent: claim_f389b0008f4bffcccb24a129
Depth: 2

The California Court of Appeal, Second District, held in 1976 that it is unfair for a seller of business goodwill to engage in competition that diminishes the value of the asset sold.

Labels: Source-linked, Medium, investigate

#### Under the 'narrow restraint' doctrine applied by the Ninth Circuit in 1987, contractual restrictions that res…

Id: claim_ecabd11a599467fd39aac40b
Parent: claim_ab03ccdecd8d8e207e3416d6
Depth: 2

Under the 'narrow restraint' doctrine applied by the Ninth Circuit in 1987, contractual restrictions that restrain an employee from only a small or limited portion of their trade or profession do not violate Section 16600.

Labels: Inferred, Medium, investigate

#### The Delaware Court of Chancery ruled in 2020 that a noncompete agreement was enforceable against a California…

Id: claim_f0d577bf0a1d62fd850f4a0a
Parent: claim_f389b0008f4bffcccb24a129
Depth: 2

The Delaware Court of Chancery ruled in 2020 that a noncompete agreement was enforceable against a California resident because the employee was represented by counsel during negotiations.

Labels: Source-linked, Medium, investigate

#### In Fillpoint, LLC v.

Id: claim_f53a76c49b0820b5abdf94b8
Parent: claim_388bed7298e6ae6bb49b2153
Depth: 2

In Fillpoint, LLC v. Maas (2012), the California Court of Appeal held that a noncompete in an employment agreement executed as part of an M&A transaction is valid to protect acquired goodwill.

Labels: Inferred, Medium, investigate

#### In Fowler v.

Id: claim_fb99e99f0603f803807b4ebd
Parent: claim_f253bcd67b5ebe7f478407a1
Depth: 2

In Fowler v. Varian Associates, Inc. (1987), the California Court of Appeal ruled that an agreement preventing an employee from assisting a competitor while still employed is not void under Section 16600.

Labels: Source-linked, Medium, investigate

#### In Cubic Corp.

Id: claim_fdb48994c754b40a841bb994
Parent: claim_f389b0008f4bffcccb24a129
Depth: 2

In Cubic Corp. v. Marty (1986), the California Court of Appeal, Fourth District, held that invention assignment agreements do not restrict an employee's ability to engage in a lawful profession.

Labels: Source-linked, Low, investigate
