Non Compete Agreements in Texas

Texas Noncompete Agreements Must Be Reasonable in Scope

February 6, 2015 / By Robert Wood
Articles // Non Compete Agreements in Texas

Hiring employees, training them, and granting them access to industry secrets or client lists exposes employers to the possibility that employees will utilize this valued information against them.  In order to protect themselves, employers will often include a covenant not to compete provision in an employment contract, commonly known as a “non-compete.”  However, it is…

Read more

Choice of Law in Texas Noncompete Litigation

January 8, 2015 / By Robert Wood
Articles // Non Compete Agreements in Texas

When contracting with another party, it is essential to understand which state law will govern your contract in the event you find yourself in a contractual dispute.  What might seem to be a reasonable provision, agreed upon by all parties, can be interpreted radically different depending upon the state law that will govern your contract. …

Read more

A Rare Anti-Noncompete Case in Texas

November 18, 2014 / By Robert Wood
Articles // Non Compete Agreements in Texas

An employee of a small manufacturing company (“Acme Company”) leaves and starts his own competing company (“Best Company”). Acme Company sues the employee for doing so—because the employee signed a noncompete agreement stating that, if he left Acme Company, he would not start a competing business. In the lawsuit, the employee argues, “The existence of…

Read more

Texas Appeals Court Reverses Denial of Temporary Injunction in Noncompete Case

April 10, 2014 / By Robert Wood
Articles // Non Compete Agreements in Texas

Once again, a Texas appellate court sides with a company suing to enforce a noncompete agreement.  This time, the employer sued a former employee for violating a covenant prohibiting the employee for competing for three years following the termination of his employment.  Significantly, the noncompete covenant contained no geographic restriction.  It did not, for example,…

Read more

Unreasonable Noncompete Agreement Can Subject Employer to Potentially Huge Liability in Texas

January 10, 2014 / By Robert Wood
Articles // Non Compete Agreements in Texas

Several Texas courts have held that a victorious employer in a noncompete case cannot recover its attorneys’ fees against the losing employee.  This is based upon the fact that the Texas noncompete statute does not explicitly authorize an award of attorneys’ fees to a winning employer. However, a recent case out of the Houston Court…

Read more