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California court provides important reminders regarding the enforceability of non-compete covenants in M&A transactions and employment agreements under California law

06 September 2012

Hogan Lovells Alert

The California Court of Appeal (Fourth Appellate District) recently addressed the enforceability of non-compete covenants in the context of purchase and employment agreements in Fillpoint, LLC v. Michael Maas et al., __ Cal. Rptr. 3d __, 2012 WL 3631266 (Cal. Ct. App. Aug. 24, 2012). Fillpoint involved an executive-level employee and shareholder who, in connection with the sale of his former employer, entered into both a stock purchase agreement and an employment agreement with the purchaser. Each agreement signed by the employee contained a non-compete covenant, but the two covenants were not identical.

Read: "California court provides important reminders regarding the enforceability of non-compete covenants in M&A transactions and employment agreements under California law"

The team

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