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ARTICLE · 26 MAY 2022

California Resident May Rely Upon Labor Code § 925 To Challenge Non-Compete

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Four of the defendants (not including Sewell) filed a joint cross-complaint against LGCY in the Utah court proceeding and then unsuccessfully sought dismissal of LGYC's action against them.

United StatesEmployment and HR
Anthony Oncidi
Anthony Oncidi
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LGCY Power, LLC v. Superior Court, 75 Cal. App. 5th 844 (2022)

California resident Michael Jed Sewell worked as a sales representative and sales manager for LGCY Power, which is headquartered in Salt Lake County, Utah. In 2015, Sewell signed a "Solar Representative Agreement," which included noncompetition, nonsolicitation and confidentiality provisions as well as Utah choice of law and forum provisions. In 2019, Sewell and several other executives and managers left LGCY to form a competing solar sales company. Shortly thereafter, LGCY sued Sewell and the other former employees in Salt Lake County for breach of their employment agreements, breach of fiduciary duty, misappropriation of trade secrets and related claims. Four of the defendants (not including Sewell) filed a joint cross-complaint against LGCY in the Utah court proceeding and then unsuccessfully sought dismissal of LGYC's action against them.

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