Archive

Enforceable Noncompete Agreements: Is At-Will Employment Really “Illusory”?

July 16, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

Texas courts routinely hold that at-will employment is "illusory" consideration.  Because the employer is free to terminate the employee at any time, the courts reason, giving an at-will job to someone is, legally speaking, meaningless.  Thus, non-compete agreements in Texas based upon that consideration are unenforceable. Not all states agree.  While researching a noncompete matter…

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Texas Unfair Competition Law: Court Rejects Tortious Interference and Participating and Assisting Breach of Fiduciary Duty Claims

July 14, 2007 / By Robert Wood
Articles // Tortious Interferance

In July 2001, Sysco, a distributor of food service products, issued a Request for Proposal (“RFP”). Among the companies that received the RFP were Mark III and BI. Mark III and BI had a business relationship that involved them sharing information and customers.  Unbeknownst to Sysco, their relationship was formalized in a written contract.  Mark III…

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Noncompete Agreements in Texas: Forum Selection Provisions Are Enforceable

July 13, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

Texas courts have long held that Texas law should determine whether non-compete agreements affecting Texas residents are enforceable.  As a result, Texas courts generally will not enforce out-of-state choice of law provisions.  However, as a recent Texas Supreme Court case illustrates, contractual forum selection provisions can alter that result. In Re AutoNation, Inc. involved a…

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Noncompete Agreements in Texas: Some Restrictions Are Overly Broad

July 12, 2007 / By Robert Wood
Articles // Non Compete Agreements in Texas

Non-compete agreements routinely provide for the employer to get injunctive relief in the event the employee engages in post-employment competition. In a recent case, the agreement in question subjected the employee to potentially harsher penalties.  The non-compete in question contained the following provisions: 14.     Restrictive Covenant. In consideration of the benefits being provided to the Employee pursuant…

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