Facts

A non-compete agreement was in place between plaintiff Egnyte Inc. employees and Citrix Systems Inc. Egnyte and Citrix were software competitors. Some of the plaintiffs formerly worked for Citrix and signed the non-compete agreement. Part of the agreement's terms provided that the plaintiffs could not engage in business activities that conflicted with Citrix, or solicit Citrix customers, employees, or other partners for 12 months after termination from Citrix. The employees left Citrix to work for Egnyte. Egnyte's customers were asserted to be either smaller or geographically distinguishable from Citrix customers. Citrix later notified the employees that they violated the non-competition agreement.

PLAINTIFF'S CONTENTIONS: Plaintiffs contended that the restrictions in the non-compete agreement should be void as against public policy and sought declaratory relief. The plaintiffs alleged Citrix engaged in unfair competition.

DEFENDANT'S CONTENTIONS: Citrix moved to quash service, and objected to the evidence submitted by Egnyte for judicial notice. Citrix argued that they were nonresidents lacking minimum contacts with California, and therefore the court had no jurisdiction.

Result

The court overruled some of the evidentiary objections made by Citrix, and sustained some. The court found that Egnyte failed to establish that Citrix was subject to personal jurisdiction in California. The motion to quash was granted.