Latona

ORDER RE ENFORCEABILITY OF AETNA’S NON-COMPETE AND CONFIDENTIALITY AGREEMENT

I. Introduction

A. Factual Background

Aetna Healthplans merged with U.S. Healthcare in early 1997, forming Aetna U.S. Healthcare, Inc. (“Aetna”). After the merger, Aetna sought to continue U.S. Healthcare’s policy of requiring all employees with access to confidential, proprietary, or trade secret information to sign its Non-Compete and Confidentiality Agreement (“Agreement”). In May 1997 Aetna asked its employees to sign the Agreement. Plaintiff refused, leading Aet-na to terminate her on August 8, 1997. Latona brought this action in state court on November 24,1997, alleging, inter alia, that Aetna had violated California Business and Professions Code Section 16600. Section 16600 provides, “[Ejvery contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” Cal. B & P Code § 16600 . Aetna removed the case to federal court on January 6, 1998. On April 8, 1998, Judge Real granted in part Aetna’s 12(b)(6) motion to dismiss several claims in Latona’s complaint without leave to amend. Among the claims dismissed was Latona’s cause of…