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21st Century Fox Sues Netflix Over Executive Poaching (latimes.com)

An anonymous reader quotes a report from Los Angeles Times: 21st Century Fox on Friday filed a lawsuit against Netflix, accusing the streaming video giant of illegally recruiting two of its executives who were under contract. The suit, which was filed Friday in California Superior Court in Los Angeles, says Netflix engaged in a "brazen campaign to unlawfully target, recruit, and poach valuable Fox executives by illegally inducing them to break their employment contracts with Fox to work at Netflix." The lawsuit was sparked following the exits of two Fox executives: Marcos Waltenberg, who made the jump to Netflix earlier this year, previously worked as a marketing executive at Twentieth Century Fox Film; Tara Flynn, who made the move to Netflix just last week, had been the vice president of creative affairs at Fox 21 TV Studios. Fox alleges that Netflix pursued and hired the executives even though it knew they each had employment contracts that were still in effect, according to the complaint. The Century City-based studio is seeking an injunction to prevent Netflix from interfering with its employment contracts, as well as compensatory and punitive damages. A Netflix spokesperson said in a statement: "We intend to defend this lawsuit vigorously. We do not believe Fox's use of fixed term employment contracts in this manner are enforceable. We believe in employee mobility and will fight for the right to hire great colleagues no matter where they work."

83 comments

  1. SInking SHip by ISoldat53 · · Score: 3, Insightful

    The rats are leaving the sinking ship.

    1. Re:SInking SHip by hcs_$reboot · · Score: 1

      Do you think the quality of movies and series will be as good as it is once our only choice is Netflix?

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    2. Re: SInking SHip by Anonymous Coward · · Score: 0

      There are only ten good movies on Netflix at any given time. The rest are filler garbage.

      The series are decent.

    3. Re:SInking SHip by Opportunist · · Score: 2

      No, but fortunately the requirements for opening a service like Netflix are WAY lower than for opening a cable TV service.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    4. Re:SInking SHip by Anonymous Coward · · Score: 0

      It can't be any worse.

    5. Re:SInking SHip by Anonymous Coward · · Score: 0

      Why in the world would our only choice be Netflix?
      And what the fuck does that have to do with this gross lawsuit?

    6. Re:SInking SHip by hcs_$reboot · · Score: 1

      It can. Netflix will become the fast food of visual entertainment.

      --
      Slashdot, fix the reply notifications... You won't get away with it...
    7. Re:SInking SHip by Anonymous Coward · · Score: 0

      I had a co-worker who said that about our overall director. The director left. It got worse.

    8. Re:SInking SHip by HornWumpus · · Score: 0

      Every industry ends in monopoly is an axiom to leftists. Because Marx said it.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    9. Re:SInking SHip by Anonymous Coward · · Score: 0

      Every industry ends in monopoly is an axiom to leftists. Because Marx said it.

      And every time it happens in real life it's just a liberal conspiracy.

    10. Re:SInking SHip by Anonymous Coward · · Score: 0

      You're right, maybe one day the only movies that come out will be awful reboots pandering to nostalgia and superhero movies... Hey wait!

    11. Re: SInking SHip by knightghost · · Score: 1

      There are about half a dozen good movies and maybe half a dozen series that are ok enough to watch while vegging out. The rest are filler garbage.
      I still rent DVDs simply because of content. Streaming content is horrible. It's back to paying for $20 CDs for 1 good song.

    12. Re:SInking SHip by Anonymous Coward · · Score: 0

      I guess Google is a marxist liberal front for their leftist policies too huh?

      Oh I forgot, everybody thinks government power is a liberal idea because their favorite republicans told lthem so.

    13. Re:SInking SHip by HornWumpus · · Score: 1

      How many times has it happened? Marx said it without any historical evidence. It hasn't developed sense.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    14. Re:SInking SHip by alvinrod · · Score: 1

      Some would argue we're already at that stage, so how much worse can it get. Even if most of what they make is utter dreck, at least the viewers won't have to wade through upwards of 10 minutes of commercials just to consume it.

    15. Re:SInking SHip by Megol · · Score: 2

      Many times, may I suggest that you do some studying? Because the monopoly controls existing today weren't created because some dude named Marx speculated about it, they were created to avoid problems that actually existed at the time.

      Monopolies still exist today but mostly in a different form - a few companies that willingly divide a market between them making it near impossible for new actors to enter. For consumers and corporations alike that is the same problem as a real monopoly but technically a market with two-three strong companies isn't one.

    16. Re: SInking SHip by Anonymous Coward · · Score: 0

      For now I think Netflix has an exponentially higher ratio of value to cost than any of the others. Fuck Fox with a cactus.

    17. Re:SInking SHip by Anonymous Coward · · Score: 0

      HornWumpus probably thinks that the Monsanto-Bayer and Dow-Dupont mergers will lower drug prices

    18. Re:SInking SHip by meglon · · Score: 1

      Never, EVER say it can't get worse.... next thing you know, Netflix will only be making movies and series the quality of which can only be shown during the Sci Fi channels Saturday movie time slots.

      --
      Fascism: An authoritarian and nationalistic right-wing system of government and social organization. See also: NAZI's
    19. Re:SInking SHip by HornWumpus · · Score: 1

      In the classic historic cases (Standard oil, MS) the 'monopoly' fell apart in the marketplace well before the regulators could do anything about it.

      The problem with monopolies has always been extracting a monopolist's price. A monopolist's price plus healthy capital market equals no more monopoly.

      Markets need some regulation, that predates Marx. As always read Smith.

      Marx stated, with a drunken arm wave, that all markets go to monopoly. He was wrong for many reasons.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    20. Re:SInking SHip by Anonymous Coward · · Score: 0

      Monopolies still exist today but mostly in a different form - a few companies that willingly divide a market between them making it near impossible for new actors to enter.

      There's actually a name for that, it's oligopoly.

  2. This is in California. by brunes69 · · Score: 5, Interesting

    This suit will be thrown out before the ink dries. Employee mobility is very strongly enforced in California.

    1. Re:This is in California. by Opportunist · · Score: 1

      These are execs. They're bought and sold like football stars.

      --
      We used to have a Bill of Rights. Now, with the rights gone, all we have left is the bill.
    2. Re: This is in California. by brunes69 · · Score: 1

      Their position is irrelevant. Any employment contract that inhibits mobilitybis null and void in California.

    3. Re:This is in California. by Anonymous Coward · · Score: 0

      Wrong. Fox always win in court. Even when they lie, and shown to be false, they still win. Even though this is in CA where the employee cannot be tied down by contract clauses to not work for a competitor, Fox will fscking win. They're like a cult when he comes to legal decisions. Just you wait... Someone somewhere will have some dirt on the judicial personnel and get the result they want.

    4. Re: This is in California. by Anonymous Coward · · Score: 0

      No. Executives are different. Depending on corporate structure and charter, executives might or might not be employees at all. They might be stakeholders or shareholders with distinct contracts that are not beholden to employment laws.

    5. Re: This is in California. by sexconker · · Score: 1, Insightful

      No. Executives are different. Depending on corporate structure and charter, executives might or might not be employees at all. They might be stakeholders or shareholders with distinct contracts that are not beholden to employment laws.

      You're a retard.

      Not only are they employees they're bound by law. Even if courts allowed the ridiculous slavery contracts in question, Netflix is not a party to those agreements and Fox can't sue Netflix for trying to hire someone who was bound by such an agreement.

    6. Re: This is in California. by LordLucless · · Score: 1

      And you're ignorant. Interfering in the contracts between third parties has been actionable forever. Its called tortious interference.

      --
      Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
    7. Re: This is in California. by sexconker · · Score: 1

      Not only are such contracts illegal, Netflix isn't actively interfering with them.

    8. Re: This is in California. by Rakarra · · Score: 1

      A whole bunch of California companies (Google, Intel, Disney, etc) recently lost a lawsuit when it was revealed that they colluded to not hire each others' employees.

      On the other hand, some specific contracts are enforced -- I worked for a consulting company as a consultant at a client firm, and was not allowed to join that client firm as one of their employees until a full year after the consulting contract expired. Apparently that doesn't count as a "non-compete agreement."

  3. Let me see if I understand by Anonymous Coward · · Score: 5, Insightful

    Two people have contracts with Fox that, presumably, say they can't work for someone else. Neflix, who has no contract with Fox, hires those people. Fox sues Netfix and not their former employees.

    How the fuck is this not a SLAPP-like bullshit case that gets thrown out teh second a judge sees it? How can you sue someone for breaking a contract they aren't party too?

    1. Re:Let me see if I understand by Anubis+IV · · Score: 1

      If I offered you a bribe in exchange for providing me with info that your NDA says you can't share, I may not be a party to your NDA, but I can still be sued for inciting you to breach it. The same applies here...sort of. The interesting wrinkle in this case is that the contract itself was likely illegal from the beginning due to the terms in contained, meaning that it was never enforceable to begin with.

    2. Re:Let me see if I understand by Kjella · · Score: 1

      How can you sue someone for breaking a contract they aren't party too?

      Tortious interference, if for example the RIAA/MPAA/BSA falsely claims you're a pirate and the ISP terminates your contract you can sue the accusers for disrupting your business relationship, even though the ISP may have legally terminated the contract according to the terms of service. It does depend on some "wrongdoing" though like in this case misrepresentation, it's not like your ISP can sue other ISPs for giving you a better offer.

      --
      Live today, because you never know what tomorrow brings
    3. Re:Let me see if I understand by Tesen · · Score: 2

      If I offered you a bribe in exchange for providing me with info that your NDA says you can't share, I may not be a party to your NDA, but I can still be sued for inciting you to breach it. The same applies here...sort of. The interesting wrinkle in this case is that the contract itself was likely illegal from the beginning due to the terms in contained, meaning that it was never enforceable to begin with.

      There is no similar application here; employment contracts are between employee and employer and unless Netflix had a non-compete with Fox, this lawsuit is moot against Netflix

      That being said, action against the former employees is probably likely and I doubt the term contract will be upheld in its entirety; in my field (IT) I usually have a standard non-compete clause in the employment contracts for the employers current industry, I would be shocked if a similar did not exist in these employees contracts.

      Also, if the employees have violated the non-compete this does not compel Netflix to fire them either, in fact all Netflix needs to do is provide their corporate lawyers as apart of their employees benefits, so they can fight Fox in court. Also a NDA agreement that they likely signed does not allow them to divulge Fox corporate secrets, but it does not prevent them from practicing their skillset elsewhere (that would be the non-compete).

    4. Re:Let me see if I understand by Tesen · · Score: 1

      And in addition, we have not seen their employment contracts, so who knows what else is in there that they the employee may have violated.

    5. Re:Let me see if I understand by TechyImmigrant · · Score: 1

      How can you sue someone for breaking a contract they aren't party too?

      Tortious interference

      Interfering with tortoises? Off with their heads!

      --
      I should use this sig to advertise my book ISBN-13 : 978-1501515132.
    6. Re:Let me see if I understand by alvinrod · · Score: 1

      The only way I could see this working is if Fox were to continue to pay a salary to the executives after they stopped working for Fox so long as those individuals did not go to work for a competitor. Otherwise, like you suggest the case isn't going to go anywhere.

    7. Re:Let me see if I understand by Richard_at_work · · Score: 3, Informative

      There is a concept that is alive and well in contract law called "Torturous Interference" - if Netflix did indeed incite these execs to breach their contracts, they have a case to answer.

    8. Re: Let me see if I understand by Anonymous Coward · · Score: 0

      People are not slaves. You cannot think of them as your property or buy and sell them.

    9. Re: Let me see if I understand by jhoger · · Score: 1

      Employment contracts are between employer and employee but have you heard of tortious interference?

      The real problem is the non compete is not enforceable in California. Hopefully it is dispensed with by the judge quickly.

    10. Re: Let me see if I understand by pinzvidz · · Score: 1

      Murdoch does not agree with this statement.

    11. Re:Let me see if I understand by whoever57 · · Score: 3, Insightful

      if Netflix did indeed incite these execs to breach their contracts, they have a case to answer.

      You can't breach a clause in a contract if state law says that clause is null and void. Non-compete clauses are not valid in California.

      --
      The real "Libtards" are the Libertarians!
    12. Re:Let me see if I understand by meglon · · Score: 1

      http://uproxx.com/tv/gruesome-...

      Just because some of us don't have a corncob up our ass.

      --
      Fascism: An authoritarian and nationalistic right-wing system of government and social organization. See also: NAZI's
    13. Re:Let me see if I understand by Anonymous Coward · · Score: 0

      Tortuous Interference. Torturous Interference is another matter entirely.

    14. Re:Let me see if I understand by Tesen · · Score: 1

      There is a concept that is alive and well in contract law called "Torturous Interference" - if Netflix did indeed incite these execs to breach their contracts, they have a case to answer.

      It is my understanding that FOX would be required to prove that Netflix has caused FOX to suffer great and irreparable harm by hiring its executives in an attempt to undermine its business and in additional aware of the contractual relationship between the two and still carried with intent to incite the former employees to breach their contract, but since the non-compete is not enforceable in California where are the violated provisions in the contract that are the responsibility of Netflix? If anything this is a labor dispute between FOX and its former employees, one that will most likely come down to vested options in stock, bonuses etc with their former employer.

    15. Re: Let me see if I understand by Tesen · · Score: 2

      Employment contracts are between employer and employee but have you heard of tortious interference?

      The real problem is the non compete is not enforceable in California. Hopefully it is dispensed with by the judge quickly.

      FOX will need to actually prove they suffered harm and loss; maybe I misunderstand tortious interference, but it was my impression that as long as Netflix was not aware of the provisions of the former executives contracts (which they can claim and FOX will need to prove otherwise) they acted in good faith to extend a job offer to two executives in a state where non-compete's are invalid (i.e. tough to prove they suffered harm and loss).

      My opinion is this will come down to an employment dispute between FOX and its former employees, most likely over stock options, bonuses etc and whatever other incentives they had in their contracts and that Netflix may pay a penalty during their next streaming rights negotiations with FOX :)

    16. Re: Let me see if I understand by Anubis+IV · · Score: 1

      And clearly you didn't read my comment before clicking the Reply button.

    17. Re: Let me see if I understand by Anonymous Coward · · Score: 0

      Why would inciting the breach of an NDA be a crime? It's up to the person who signed it. Nobody else is beholden to that contract. It's also a civil contract, meaning it's just an agreement on paper with consequences and stipulations created by its authors. It's not a law. It's enforceable among those signing, but it's not a law.

    18. Re:Let me see if I understand by Richard_at_work · · Score: 1

      This has nothing to do with non-competes.

    19. Re:Let me see if I understand by Richard_at_work · · Score: 1

      Once again, this has nothing to do with non-competes.

    20. Re:Let me see if I understand by Anonymous Coward · · Score: 0

      There is a concept that is alive and well in contract law called "Torturous Interference" - if Netflix did indeed incite these execs to breach their contracts, they have a case to answer.

      I think you might have meant *tortious* interference, being a reference to torts (wrongful acts which attract liability). Or perhaps I am mistaken and the execs in question were being waterboarded...

  4. 21st Century Fox Sues Over Executive Poaching? by Anonymous Coward · · Score: 0

    If I was them, I'd sue over them poaching *my* executives as well.

    Everyone knows they're meant to be grilled or fried.

    1. Re:21st Century Fox Sues Over Executive Poaching? by RabidReindeer · · Score: 1

      Anyone who'd work for Rupert Murdoch probably should be given the gravlox treatment.

  5. Why is the suit againtst fox? What laws? by BlueCoder · · Score: 0

    How are they suing fox? I can see if they sued their former employee for breach on contract and fox chose to defend them.

    What laws are on the books that make poaching illegal?

    1. Re:Why is the suit againtst fox? What laws? by Calydor · · Score: 1

      Please try reading the summary again, dude.

      They used to work for Fox. Fox is the aggressor here, not the poor widdle guy trying to defend himself against big bad Netflix.

      --
      -=This sig has nothing to do with my comment. Move along now=-
  6. FOX Executives by Anonymous Coward · · Score: 0

    I'd like to poach some Fox executives.

    1. Re:FOX Executives by Anonymous Coward · · Score: 0

      They are better scrambled.

    2. Re:FOX Executives by Anonymous Coward · · Score: 0

      They're already scrambled.

    3. Re:FOX Executives by Rakarra · · Score: 1

      I'd like to poach some Fox executives.

      Fox executives are the Most Dangerous Game...

  7. they want netflix to fire the execs to save money by Anonymous Coward · · Score: 0

    Companies make these kinds of suits to cost others money. The expectation is to enforce their contracts by getting them to fire the staff. Most people would just get fired. This is why 'unenforceable' contractors are enforceable. Most new employers will simply fire you. There was a wallstreet journal article about a financial company in Finance360 or something like that, making entry level people sign non-competes so i f they leave, they cant get another job in anything remotely related for a year. Some woman was unemployable. Its not enforceable legally, but its not worth it to other employers to defend you.

  8. Did the contracts have a "Key person" clause by Anonymous Coward · · Score: 0

    That allows the employees to terminate the contract if a "key person" (e.g. Roger Ailes) left the company?

    1. Re: Did the contracts have a "Key person" clause by Anonymous Coward · · Score: 1

      I didn't think employment contracts of any kind were binding in California.

    2. Re: Did the contracts have a "Key person" clause by HornWumpus · · Score: 4, Informative

      INAS (I am not a shyster), but working in CA for decades.

      Non competes are only binding in California when the people involved are 'business principles' and the non compete is narrowly structured.

      A CEO's non compete is binding (if narrow) a regular employees is not.

      These are 'executives' so maybe, but odds are low.

      Long term employment contracts in the USA cannot be held for 'specific performance' as that gets close to slavery (history: Indentured servants), but damages can be assessed.

      --
      John McAfee 'It was like that time I hired that Bangkok prostitute; to do my taxes, while I fucked my accountant'
    3. Re: Did the contracts have a "Key person" clause by whoever57 · · Score: 3, Informative

      INAS (I am not a shyster), but working in CA for decades.

      Yes, it's just as well that you are not providing legal services:

      In California it is a bright-line rule: Employee noncompete agreements are void. It does not matter how reasonable or well-intended they are.

      That page lists the only exception:

      Are Any Non Compete Agreements Legal in California?

      Only for owners of a business, corporation, LLC, or partnership.

      These people may own some shares, but that doesn't make them an "owner" for this purpose.

      --
      The real "Libtards" are the Libertarians!
    4. Re: Did the contracts have a "Key person" clause by DRJlaw · · Score: 1

      Yes, it's just as well that you are not providing legal services:

      Not really. He's said the exact same thing that you have, he said it first, and you've simply failed to appreciate that he had.

      You might want to google the term "business principal." You should also be aware that another of the exceptions involves trade secrets, which executive level employees are far more likely to know (and reuse) than non-executive employees. Just as GP said, it's not a slam dunk with an EVP by any means, but you're equally wrong in ignoring the other CA exceptions.

    5. Re: Did the contracts have a "Key person" clause by whoever57 · · Score: 1

      Not really. He's said the exact same thing that you have, he said it first, and you've simply failed to appreciate that he had.

      You, also, are wrong. He said:

      A CEO's non compete is binding (if narrow) a regular employees is not.

      This is untrue. A CEO's non-compete is just as unenforceable as a regular employee's is. You, like many others, may think that not to be true, but it is. In order for a non-compete to be enforceable, the person has to be an owner. "business principle" doesn't cut it.

      You should also be aware that another of the exceptions involves trade secrets, of the exceptions involves trade secrets,

      As for trade secrets, you can't stop someone from working for a competitor just because you fear that they may reveal trade secrets. From the web page that I linked to:

      Is there a Trade Secret Exception to NonCompetes?
      No. Any attorney who tells you that should be your ex-attorney.

      Perhaps you don't understand the meaning of "bright-line rule"?

      Read the page that I linked to. Try doing some googling and reading yourself. This article looks relevant: https://www.wsgr.com/WSGR/Disp...

      --
      The real "Libtards" are the Libertarians!
    6. Re: Did the contracts have a "Key person" clause by DRJlaw · · Score: 2

      Your source is wrong.

      As to the rest:
      1. A business principal is an owner, partner, or other person with a material fractional interest in the business and an ability to control. I don't know where you're getting your definition of business principal from, but they mean the same thing. BPC 16601 specifically states:

      "For the purposes of this section, "owner of a business entity" means any partner, in the case of a business entity that is a partnership... or any member, in the case of a business entity that is
      a limited liability company... or any owner of capital stock in the case of a business entity that is a corporation."

      2. California does have a trade secrets exception; you need to read Muggill v. Reuben H. Donnelley Corp -- Edwards v. Arthur Andersen expressly refused to eliminate that exception.

      3. CEOs and other executive level staff are far more likely to have knowledge of trade secrets, and to be expected to use that knowledge in new positions. It is not a slam dunk that you can exclude an executive level employee from employment in another business (and you can't in businesses in different fields or positions with different responsibilities within the same field), but if the responsibilities of the new position require exploiting the old trade secret knowledge, you can effectively enjoin that use and, as a result, exlcude that person from that job.

      I understand "bright line rule" just fine. I also understand that there is no bright line rule like the one that you suggest, that the BPA exceptions are broader than you believe, and that the trade secret exception to your so-called "bright line rule" still exists and is enforced in California.

      I merely allow for the possibility that he could be excluded from the job (technically, performing certain job responsibilities) under California law, you're the one arguing that there's no possible way for that to happen. You're wrong. You can't point to one California court decision that states otherwise, and, no, court decisions which don't even discuss trade secrets issues do not suffice to show that Muggill does not apply.

      you can't stop someone from working for a competitor just because you fear that they may reveal trade secrets

      It all depends upon how objectively reasonable that fear is. I suggest that you begin by reading the cases that actually cite Muggill, rather than implicitly trusting a spamvertisement page that completely misrepresents the Dowell decision. That court said:

      "Although we doubt the continued viability of the common law trade secret exception to covenants not to compete, we need not
      resolve the issue here. Even assuming the exception exists, we agree with the trial court that it has no application here. This is
      so because the noncompete and nonsolicitation clauses in the agreements are not narrowly tailored or carefully limited to the
      protection of trade secrets, but are so broadly worded as to restrain competition"

      The California Court of Appeal can doubt all it wants, but it can't overrule the California Supreme Court. Until the latter overrules Muggill, it remains the law.

    7. Re: Did the contracts have a "Key person" clause by whoever57 · · Score: 1

      Your source is wrong.

      2. California does have a trade secrets exception; you need to read Muggill v. Reuben H. Donnelley Corp -- Edwards v. Arthur Andersen expressly refused to eliminate that exception.

      Are you a complete idiot? Not one of your references supports your point. Not one of them supports the idea that there is a trade secret exception to the voiding of non-compete agreements. For example, let's look at the outcome of Muggill v. Reuben H. Donnelley Corp. What did the Supreme Court of California decide: "The judgment is reversed.". This was a reversal of an adverse judgment under which the plaintiff lost his pension due to a non-compete agreement. In other words, the Supreme Court agreed that the non-compete was void.

      As for E Edwards v. Arthur Andersen: " We conclude that Andersen's noncompetition agreement was invalid."

      Here is another page that shows you are wrong:

      In addition, even where trade secrets are potentially at risk, California has refused to prevent a party from accepting employment with a competitor simply because there is a claim that disclosure of the former employerâ(TM)s trade secrets is âoeinevitable.â There must be actual or threatened disclosure. Read âoeInevitable Disclosure of Trade Secrets.â

      ....

      If California law applies to a given transaction, it appears that virtually any form of non-compete provisions (other than those expressly set forth in the statute) are likely to be unenforceable. And this likely applies as well even when there is the possibility, but not actual disclosure of, trade secrets.

      --
      The real "Libtards" are the Libertarians!
    8. Re: Did the contracts have a "Key person" clause by DRJlaw · · Score: 1

      Are you a complete idiot? Not one of your references supports your point.

      Then you should actually read the cases, not merely the conclusions.

      Muggill:
      "With certain exceptions not relevant here, section 16600 of the Business and Professions Code provides that "every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void." This section invalidates provisions in employment contracts prohibiting an employee from working for a competitor after completion of his employment or imposing a penalty if he does so (Chamberlain v. Augustine, 172 Cal. 285, 288 [156 P. 479]; Morris v. Harris, 127 Cal.App.2d 476, 478 [274 P.2d 22]; Davis v. Jointless Fire Brick Co., 300 F. 1, 4), unless they are necessary to protect the employer's trade secrets (Gordon v. Landau, 49 Cal.2d 690, 694 [321 P.2d 456])."

      Edwards:
      "4 We do not here address the applicability of the so-called trade secret exception to section 16600, as Edwards does not dispute that portion of his
      agreement
      or contend that the provision of the noncompetition agreement prohibiting him from recruiting Andersenâ(TM)s employees violated section 16600."

      You keep bringing up side issues like "inevitable disclosure," yet Muggill says what it says, applies where it applies, and continues to do so.

      The best part of this argument is that the Fox case doesn't have anything to do with non-compete agreements, but rather Intentional interference with contractual relations.

      If you sign a contact to work for me for a year, and you break the contract, I can indeed pursue you for damages. If some other party, like Netflix, is aware of the contract and induces you to break it, I can pursue them for damages and an injunction to prevent future poaching. Nothing in California law prohibits an employee from agreeing to employment for a term, and crying about California's theories concerning non-competes is not a defense to that claim.

    9. Re: Did the contracts have a "Key person" clause by whoever57 · · Score: 1

      I can't decide if you have the intelligence of a light bulb, or are trolling.

      In Edwards, the court says nothing one way or the other about the applicability of trade secrets. Even your own quote shows this. Just because one side or the other of a lawsuit does not dispute a point does not make it a binding decision by the court, applicable to other cases.

      As for the quote from Muggill, that is mere dicta and has no legal force. If you read the cases quoted in Muggill, they don't support the proposition that a non-compete can be enforced, only the proposition that a trade secret clause can be enforced. In both of those cases, there was an actual use of trade secrets.

      The reason that you are quoting from cases that only incidentally touch on the issue is that you don't have a single case to support your point.

      Finally, your point about this not being about non-compete, go back to HornWumpus's post, to which I replied. That was the first discussion of non-compete. I corrected him, and you jumped in to attempt to correct me. So don't complain about discussing non-competes when you were discussing non-competes.

      --
      The real "Libtards" are the Libertarians!
    10. Re: Did the contracts have a "Key person" clause by DRJlaw · · Score: 1

      As for the quote from Muggill, that is mere dicta and has no legal force.

      Yes, because lower courts simply and routinely ignore statements of law that appear in their respective supreme court decisions as "dicta."

      I'll go back to practicing law for a living now. It's hard to afford light bulbs on six figures...

    11. Re: Did the contracts have a "Key person" clause by whoever57 · · Score: 1

      It's hard to afford light bulbs on six figures...

      You think that I should be impressed by your claimed six figure income? LOL.

      Let me rephrase your statement: "Anonymous Coward claims to have modest income."

      --
      The real "Libtards" are the Libertarians!
  9. What? by Anonymous Coward · · Score: 0

    I thought that "No Poach" agreements were already illegal and negatively affected wages and the job market.

    And their contracts already included terms for if they were broken which are not illegal either so long as those terms are followed when broken.

    So we have companies now trying to fight when it is exposed that they had no poaching agreements in place for their rank and file pretending that the agreements were legal when they weren't while at the same time trying to sue Netflix for not honoring the no poach agreements because they were already ruled illegal.

    Did they forget all the crap that happened after Steve Jobs crap was found out after his death. Hell, if he were still alive he might have risked some serious shit for that since the no poach setup he had was estimated to surpress wages across the entire industry by a minimum of 10%.

  10. If you can't compete by Anonymous Coward · · Score: 0

    Sue.

  11. Slavery by Anonymous Coward · · Score: 0

    Fox fully believes in the ability to buy and keep people. If you steal their slaves you will be prosecuted!

  12. What's the travesty here is by future+assassin · · Score: 3, Insightful

    the new guard is bringing in the old guard into the new system.

    --
    by TheSpoom (715771) Uncaring Linux user here. I have nothing to add to this but please continue. *munches popcorn*
  13. Isn't this already settled law by Pop69 · · Score: 1

    From back when Microsoft hired pretty much the whole of Borlands programming tools staff ?

    1. Re:Isn't this already settled law by Anonymous Coward · · Score: 0

      I doubt Netflix hired Fox's entire staff.

  14. Any accounting articles while I wait? by Impy+the+Impiuos+Imp · · Score: 1

    So...Slashdot is also a mundane contract law blog website now?

    --
    (-1: Post disagrees with my already-settled worldview) is not a valid mod option.
    1. Re:Any accounting articles while I wait? by D00MSlayer · · Score: 1

      Not to be confused with Bob Loblaw's Law Blog

  15. They are just taking potshots at each other. by tlambert · · Score: 1

    They are just taking potshots at each other.

    The Hatfields and the McCoys didn't actually have to *hit* each other, to feel good about *shooting* at each other. Like any feud, it kind of doesn't matter if the shots *hit*, only that there is continued shooting.