NewLife Sciences, Inc. v. Weinstock, 197 Cal. App. 4th 676 (2011)

NewLife terminated the employment of Ronald Weinstock, the purported inventor of a Therapeutic Magnetic Resonance Device (“TMRD”), which NewLife had purchased approximately one year before the termination. In connection with its purchase of the TMRD, NewLife had obtained a non-compete covenant, which prohibited Weinstock from competing for five years after the termination of his employment. NewLife subsequently filed a complaint against Weinstock in which it alleged breach of contract, conversion, fraud, and misappropriation of trade secrets, and sought injunctive relief, among other things. During the course of the litigation, discovery disputes arose, and the trial court ordered Weinstock to comply with several discovery orders. After Weinstock failed to comply with the trial court’s discovery orders, the court entered an order awarding issues sanctions, which included a determination that the non-compete was enforceable. The court later entered a preliminary injunction prohibiting Weinstock from competing with NewLife. The Court of Appeal in this opinion affirmed the trial court’s order granting the preliminary injunction.