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EVelozcity Can Drive Ahead With No-Poach Contract Row

Law360, Los Angeles (November 8, 2018, 10:14 PM EST) -- Electric vehicle startup Faraday & Future must face claims from rival EVelozcity that it imposed an illegally restrictive contract term that prevented departing employees from recruiting colleagues to another company, a Los Angeles judge ruled Thursday, rejecting Faraday's bid to end the suit on anti-SLAPP grounds.

Los Angeles County Superior Court Judge Elizabeth White denied the motion, finding that Faraday’s argument was not appropriate because it said the lawsuit was in retaliation for breach of contract arbitration brought by Faraday against EVelozcity.

Citing a California appeals court’s decision — Century 21 Chamberlain & Associates v. Haberman — Judge White said that the state's...

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