California’s high court has ruled that companies are not liable for encouraging businesses to terminate their at-will contracts with other partners, so long as they don’t do so through “wrongful means,” and that a California statute that prohibits noncompete agreements for individuals can also apply to corporate entities.
The ruling, which sketches out the scope of legal competitive practices under the state’s antitrust and tort laws, surprised some experts, who say the decision deviates from the court’s anti-business reputation.
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