California Court Cannot Prevent Out-of-State Enforcement of Non-Competition Agreements

Case: Biosense Webster, Inc. v. Superior Court of Los Angeles County, No. B184852 (Cal. 2d App. Dist. 1/17/06)

The One Sentence Summary: A California court could not enjoin an employer from taking action outside of California to enforce its non-competition agreements against former employees.


What They Were Fighting About: Petitioner Biosense appealed a temporary restraining order (TRO) prohibiting it from enforcing non-competition agreements against its former California employees in any court outside of California.

California Court of Appeal Holdings:

• The writ petition was not moot because the grounds for issuing the TRO were challenged.


• Under the California Supreme Court decision in Advanced Bionics Corp. v. Medtronic, Inc., 29 Cal. 4th 697 (2002), a TRO enjoining sister state actions was improper under principles of judicial restraint and comity. The fact that an action in another court had not yet been filed did not distinguish the Advanced Bionics decision.


• There were no "exceptional circumstances" allowing issuance of the injunction. The possibility that another state may enforce the non-competition clauses despite California's law prohibiting restraints on competition was too speculative at this point to allow issuance of a TRO.


• The injunction against suing in federal courts was improper because a state court lacks power to enjoin federal court action.