Skip to main content

What are the requirements for a valid covenant not to compete and discuss whether or not this particular covenant is enforceable

Los Angeles, CA |

Ginger is a Certified Public Accountant in practice by herself in Centerville. She merges her practice with that of Heap, Big, and Co. Part of the merger agreement states that if Ginger should ever leave Heap, Big, and Co., she promises not to practice public accounting in Centerville for a period of five years after leaving.

Attorney Answers 4

Posted

Please take you homework assignment elsewhere.
Avvo is for real legal situtations for real people.

The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may analyse this matter differently, especially if there are additional facts not reflected in the question. I am not your attorney until retained by a written retainer agreement signed by both of us. I am only licensed in California. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.

Mark as helpful

3 lawyers agree

1 comment

Craig Trent Byrnes

Craig Trent Byrnes

Posted

I just assumed good faith on this person's part, that they were asking a real question in a hypothetical way. But you may be more right than I was . . . .

Posted

This sounds suspiciously like a law school exam question. We don't do student's work for them.

Instead of answering your question, I suggest you start your research at Cal. Business and Professions Code, section 16601.

They say you get what you pay for, and this response is free, so take it for what it is worth. This is my opinion based on very limited information. My opinion should not be taken as legal advice. For true advice, we would require a confidential consultation where I would ask you questions and get your complete story. This is a public forum, so remember, nothing here is confidential. Nor am I your attorney. I do not know who you are and you have not hired me to provide any legal service. To do so would require us to meet and sign written retainer agreement. My responses are intended for general information only.

Mark as helpful

3 lawyers agree

2 comments

Craig Trent Byrnes

Craig Trent Byrnes

Posted

I just assumed good faith on this person's part, that they were asking a real question in a hypothetical way. But you may be more right than I was . . . .

Michael Robert Kirschbaum

Michael Robert Kirschbaum

Posted

You got sold a Big Heap, alright. I hope this kid gives you credit when they get an A for their homework. But that's okay, they may be your opposing counsel in a few years. We know you will outwork them.

Posted

How can you learn if other people do your homework for you? Working in the profession isn't just something that happens when you have a degree or license. You have to actually know what you are doing, too.

*** All legal actions have time limits, called statutes of limitation. If you miss the deadline for filing your claim, you will lose the opportunity to pursue your case. Please consult with an experienced employment attorney as soon as possible to better preserve your rights. *** Marilynn Mika Spencer provides information on Avvo as a service to the public, primarily when general information may be of assistance. Avvo is not an appropriate forum for an in-depth response or a detailed analysis. These comments are for information only and should not be considered legal advice. Legal advice must pertain to specific, detailed facts. No attorney-client relationship is created based on this information exchange. *** Marilynn Mika Spencer is licensed to practice law before all state and federal courts in California, and can appear before administrative agencies throughout the country. She is eligible to represent clients in other states on a pro hac vice basis. ***

Mark as helpful

4 lawyers agree

1 comment

Craig Trent Byrnes

Craig Trent Byrnes

Posted

I just assumed good faith on this person's part, that they were asking a real question in a hypothetical way. But you may be more right than I was . . . .

Posted

As a general rule, covenants not to compete are illegal in California. California rejects the so-called "rule of reasonableness" that other states follow.

One exception is the sale of goodwill of a business. For example, a partner in a company who owns an equity interest, and subsequently sells her interest, could be subject to a reasonable covenant not to compete.

Covenants not to compete must be reasonable in time and geographical scope. The cases will generally uphold otherwise valid covenants that extend over a single city. Five years is at the outside margin of what I've seen courts uphold as a valid time restriction, and could go either way.

Good luck with your legal issues.

Sincerely,
Craig T. Byrnes
www.ctblawfirm.com

Disclaimer: Please be aware that I am not offering legal advice, nor forming an attorney-client relationship with you. I am not representing you, nor doing anything to protect your legal rights. If you believe that you have suffered a legal wrong, take action before any statute or limitations expires, or your right to do so may be lost forever. Good luck in your legal matter.

Mark as helpful

2 lawyers agree

2 comments

Michael Charles Doland

Michael Charles Doland

Posted

Yours is still a great answer and shows a lot of concern for legitimate Avvo askers.

Craig Trent Byrnes

Craig Trent Byrnes

Posted

Thanks very much.

Employment topics

Top tips from attorneys

What others are asking

Can't find what you're looking for?

Post a free question on our public forum.

Ask a Question

- or -

Search for lawyers by reviews and ratings.

Find a Lawyer

Browse all legal topics