BioSkryb Genomics, Inc. v. AClarity Genomics Inc.

Summary

The North Carolina Business Court grants Jason A.A. West summary judgment on liability for his counterclaim under California Business and Professions Code § 16600.5. The court holds that the parties’ California choice-of-law provisions are enforceable, that the contractual nonsolicitation restrictions are void under California law, and that § 16600.5 applies despite the employment being based in North Carolina. Damages and attorney’s fees remain for further proceedings.

Holdings

1. The California choice-of-law clauses are enforceable because the parties had a reasonable basis for selecting California law and no applicable exception justified disregarding their contractual choice.
2. Applying California law to invalidate the nonsolicitation restrictions would not violate a fundamental public policy of North Carolina.
3. Section 16600.5 applies even when the contract was signed and the employment was maintained outside California.
4. West was entitled to summary judgment on BioSkryb's liability because California law rendered the nonsolicitation restrictions void and BioSkryb admitted that it attempted to enforce them.

Questions Presented

1. Whether the California choice-of-law clauses in West's employment-related contracts were enforceable.
2. Whether applying California law would violate a fundamental public policy of North Carolina.
3. Whether California Business and Professions Code section 16600.5 applies when the employment was maintained outside California.
4. Whether West was entitled to summary judgment on BioSkryb's liability under section 16600.5.

Disposition

other