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Economic Costs of Noncompete Agreements

January 7, 2012 / By Robert Wood
Articles // Non Compete Agreements in Texas

In his excellent concurrence in the Marsh USA case, Texas Supreme Court Justice Don Willett observed something that practitioners and trial court judges often forget or gloss over, namely, the adverse effect that unfair noncompete agreements can have on society at large.   Justice Willett noted: “Restrictive covenants are not costless, and even a mutually…

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Texas Covenants Not to Compete: Trial Courts Must Strike Proper Balance

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

Justice Don Willett’s concurrence in the Marsh USA contains a lot of economic theory and literary allusions that one typically does not see in a court opinion. For example, Justice Willett has this advice for trial court judges who handle disputes involving restrictive covenants in Texas: “Restrictions on employee mobility that exist only to squelch…

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