tag:blogger.com,1999:blog-2231558772407397949.post2691699757265756862..comments2014-09-17T00:40:35.847-07:00Comments on Non-Compete Counsel: The Key To Ensuring Your Non-Compete Agreement Is EnforceableAnonymoushttp://www.blogger.com/profile/16883772648062320942noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2231558772407397949.post-29569122040134088642014-09-11T11:40:10.315-07:002014-09-11T11:40:10.315-07:00David, I practice in Michigan and I'm pretty c...David, I practice in Michigan and I'm pretty clear about that in my blog. If I wasn't clear about that in this particular post, that's my fault, but I have never pretended to know anything about California law! Bob, I think I've already addressed your comment on LinkedIn, but if not, feel free to let me know. <br /><br />Thanks for reading. Anonymoushttps://www.blogger.com/profile/16883772648062320942noreply@blogger.comtag:blogger.com,1999:blog-2231558772407397949.post-65484749996162642382014-09-10T12:54:19.266-07:002014-09-10T12:54:19.266-07:00If they are effective elsewhere, liquidated damage...If they are effective elsewhere, liquidated damages clauses obviously won't work in California. Forfeiture provisions violate BPC 16600 just as cleanly as do straight-up prohibitions on competition (see Edwards v. Arthur Anderson).Anonymoushttps://www.blogger.com/profile/18278809365811448338noreply@blogger.comtag:blogger.com,1999:blog-2231558772407397949.post-731439629847254882014-09-10T06:06:39.531-07:002014-09-10T06:06:39.531-07:00I strongly disagree that a liquidated damages prov...I strongly disagree that a liquidated damages provision is a solution to an unenforceable protective covenant. In PA and every other state where I have sought to enforce such covenants for nearly 40 years, the law requires that the covenant may protect only against UNFAIR competition, not simply competition. Unfair competition arises where the former employer has given something to the former employee that gives him or her a competitive advantage such as specialized training, access to trade secrets or the ability to establish a special relationship with customers. If you can prove UNFAIR competition courts will enforce protective covenants in states where they are permissible at all. If you cannot prove that there would be no basis to enforce a liquidated damages clause. That is, in the absence of proving unfair competition there are no damages at all. If you have a citation to a case where a court enforced a liquidated damages clause while not enforcing an underlying protective covenant I would greatly appreciate you providing the citation.Bob Smallhttps://www.blogger.com/profile/11586234553002858829noreply@blogger.comtag:blogger.com,1999:blog-2231558772407397949.post-88960151227073220072014-09-10T06:04:41.821-07:002014-09-10T06:04:41.821-07:00I strongly disagree that a liquidated damages prov...I strongly disagree that a liquidated damages provision is the ore even a solution to an unenforceable protective covenant. In PA and every other state where I have sought to enforce such covenants for nearly 40 years, the law requires that the covenant may protect only against UNFAIR competition, not simply competition. Unfair competition arises where the former employer has given something to the former employee that gives him or her a competitive advantage such as specialized training, access to trade secrets or the ability to establish a special relationship with customers. If you can prove UNFAIR competition courts will enforce protective covenants in states where they are permissible at all. If you cannot prove that there would be no basis to enforce a liquidated damages clause. That is, in the absence of proving unfair competition there are no damages at all. If you have a citation to a case where a court enforced a liquidated damages clause while not enforcing an underlying protective covenant I would greatly appreciate you providing the citation.Bob Smallhttps://www.blogger.com/profile/11586234553002858829noreply@blogger.com