Statutory Constraints on Partnership Agreements

Jeffrey G. Huron, Managing Member of Dykema’s Los Angeles office and member in the firm’s Business Litigation Group, is the author of this month’s Los Angeles Lawyer Closing Argument column, “Statutory Constraints on Partnership Agreements.”

Huron warns that sec.16600 of the Business and Professions Code, ensuring free competition, is not overridden by the noncompete clauses traditionally included in partnership contracts, and which are found in sec.16404 in the Corporations Code. He concludes with examples of how the conflicting statutes have been interpreted in the State courts.

To read the full Los Angeles Lawyer article, click here and scroll to page 36.