Archive

Enforcement of Non-Solicitation Agreements in Texas

April 17, 2010 / By Robert Wood
Articles // Non Solicitation Agreements in Texas

A recent appellate case from Houston demonstrates that, in determining whether non-solicitation agreements are enforceable, Texas courts treat them as non-compete agreements. In the case, an insurance broker was bound by an employment agreement that contained the following provision: Accordingly, the Executive understands and agrees that for a period of two (2) years following the…

Read more

Texas Customer Solicitation Restrictions. Unfair Competition Law in Texas.

/ By Robert Wood
Articles // Non Compete Agreements in Texas

Texas noncompete agreements routinely contain a provision prohibiting an employee from soliciting, or doing business with, her employer’s customers (except on her employer’s behalf).  Not infrequently, these provisions preclude the employee from soliciting any of her employer’s customers.  However, some Texas cases have held that such provisions are too broad. Several Texas cases have held…

Read more

Scope of Noncompete Agreements in Texas

/ By Robert Wood
Articles // Non Compete Agreements in Texas

Assuming a non-compete agreement in Texas is worded properly and supported by adequate consideration, the next question is whether the restrictions contained in the agreement are reasonable.  Texas courts have routinely held that the scope of the restrictions should bear some relationship to the activities that the employee performed for his former employer.  For example,…

Read more

Stock Options in Texas Noncompete Agreements

/ By Robert Wood
Articles // Non Compete Agreements in Texas

A recurring issue in Texas law is whether financial compensation can constitute sufficient consideration for a non-compete agreement.  This issue came up recently in a case from the Dallas Court of Appeals. In that case, a company that provided insurance brokerage services granted some stock options to one of its managing directors.  The options were…

Read more

Relationship Between Trade Secrets and Confidential Information

/ By Robert Wood
Articles // Non Compete Agreements in Texas

In determining whether a non-compete agreement is enforceable, a Texas court will assess whether the consideration given by the employer justifies the non-compete agreement. Texas courts have held on multiple occasions that an employer’s providing of confidential information is sufficient consideration for a non-compete agreement. Even without an enforceable non-compete agreement, a Texas employer has…

Read more

Permissible Scope of Nonsolicitation Agreements in Texas

/ By Robert Wood
Articles // Non Solicitation Agreements in Texas

Not infrequently, non-solicitation agreements that employers require their employees to sign are extremely broad. These provisions often preclude the employee from soliciting all of her former employer’s customers. Sometimes, the provisions also preclude the employee from soliciting her former employer’s potential customers. A recent case involved the following non-solicitation provision: Accordingly, the Executive understands and…

Read more