Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Court Watch

By Charles G. Miller and Darryl A. Hart
September 27, 2007

Ninth Circuit Reforms CA Covenant Not to Compete; CA Supreme Court Will Consider 'Narrow Restraint' Exception

Section 16600 of the California Business and Professions Code provides that '[e]very contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.' There is little dispute that this provision nullifies post-term covenants not to compete in franchise agreements except in very limited circumstances, such as the statutory exceptions for a covenant in an agreement for the sale of a business or in connection with the dissolution of a partnership or a limited liability company. See, e.g., Scott v. Snelling and Snelling, Inc., 732 F.Supp. 1034 (DC Cal. 1990).

Read These Next
Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.