Because of California's settled public policy in favor of competition, it is questionable whether any covenant not to compete which restrains a partner, member

Because of California's settled public policy in favor of competition, it is questionable whether any covenant not to compete which restrains a partner, member or director from engaging in a competing business that is not expressly authorized by statute or designed to protect a trade secret will be held enforceable in California. Moreover, because of this strong public policy, it is unlikely that a California court will apply the law of another state in interpreting a covenant not to compete based upon a contractual provision or the internal affairs doctrine. Therefore, caution must be exercised in California whenever attempting to limit a partner, member or director from entering into a competing business through a contract. http://www.pircher.com/resources/article.php?i=329 http://www.pircher.com/resources/article.php?i=329