California Business and Professions Code Section 16600

Court of Appeals Cites “Rule of Reason” Standard for Evaluation of Non-compete Restrictions in Commercial Agreements

Last year, the California Supreme Court held in Ixchel Pharma, LLC v. Biogen, Inc., that restraints in contracts between businesses should be evaluated using the same “rule of reason” standard that courts use to analyze antitrust violations under the Cartwright Act. Our previous article analyzing the Ixchel decision can be found here.

Recently, in Quidel Corporation v. The Superior Court of San Diego County, the California Court of Appeals for the Fourth District (“Court of Appeals”) applied Ixchel to overturn a decision of the San Diego Superior Court (the “Superior Court”). READ MORE