Is non-compete enforcable if corp. breaches for non-payment?

[mdc007]

I signed a consulting contract stating California, San Diego jurisdiction. The company has no money and (or) refuses to pay me for consulting services rendered. There is a one year non-compete clause in the contract. Can the company enforce the non-compete.
The company is registered in Delaware and I reside and have performed all of the consulting services in New York. I would like to work for a similar business in the near future.

HERE ARE SOME PERTINENT CLAUSES OF THE CONTRACT


Nature of Relationship. The business relationship between the Consultant and the Company shall be that of independent contractor and not employer-employee or principal-agent. Neither party shall have the authority to legally bind the other in contract, debt or otherwise.

Competition. The Consultant represents that it is not currently engaged in creating or operating a secondary securities marketplace that includes the buying or selling of previously-issued restricted and/or unlisted securities and that it is not currently providing products or services to any entity that is creating
or operating such a securities marketplace, and agrees that it will not create or operate such a marketplace or provide products or services to such a marketplace during the term of this agreement and for a period of one(1) year thereafter without the prior written consent of the Company.

Termination. The consulting services provided by this Agreement can be terminated by Company or Consultant without stated cause at any time on delivery of written notice. compensation due pursuant to Exhibit A of this Agreement will be prorated to the date of termination and timely paid, along with
incurred expenses to date of termination.

The Company and the Consultant agree that this Agreement is made pursuant to and will be governed under the internal laws of the State of California. Both parties agree to accept service of process to appear in any legal proceeding pertaining to this Agreement and all such proceedings shall be exclusively initiated and conducted in the County of San Diego, State of California.

If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

Any controversy or claim arising out of or relating to this Agreement or the breach thereof, shall be resolved by binding arbitration, in accordance with the rules and regulations of the American Arbitration Association as such rules may be amended. The parties agree that they will abide by and perform any
award rendered in any such arbitration and that any court having jurisdiction may issue a final judgment based upon any such award. If either party retains counsel to enforce its rights against the other party, then the prevailing party in any ensuing action shall be entitled, in addition to any damages, to the award of costs and reasonable attorney’s fees.
(g) The Parties agree that in the event of a breach or threatened breach by the other, including its employees, subcontractors, consultants or agents, of the provisions of this Agreement, there may be no adequate remedy available in money or damages and, accordingly, each will be entitled to injunctive and other equitable relief for such breach in addition to and not in limitation of any other legal or equitable remedies to which it would otherwise be entitled.

[Mr. Knowitall]

The Company and the Consultant agree that this Agreement is made pursuant to and will be governed under the internal laws of the State of California.

California generally doesn't enforce non-competition agreements. Under the facts you describe, the chances of enforcement seem very, very low.