California Appellate Court Holds That Non-Compete Restriction in Stipulated Injunction Is Enforceable Because There Was No Showing That It Was Not Necessary to Protect Trade Secrets

A California Court of Appeal recently reversed a trial court ruling that found a stipulated injunction preventing the solicitation of customers was invalid and unenforceable under California Business & Professions Code section 16000.

In Wanke, Industrial, Commercial, Residential, Inc. v. Sup. Ct., 2012 WL 4711888 (Cal.App. 4 Dist., October 4, 2012), the Court of Appeal held that since the trial court could not conclude, based on the language of the stipulated injunction, that it does not protect the plaintiff’s trade secrets, the court erred in concluding that it was an unlawful business restraint

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