Non Compete Agreements in Texas

Reasonable noncompete agreements can be enforceable

July 15, 2013 / By Robert Wood
Articles // Non Compete Agreements in Texas

A recent decision from the Sixth Circuit upholding a district court’s preliminary injunction in litigation involving a non-compete clause demonstrates why an employee should sometimes be wary of legal advice from a new employer. In Firstenergy Solutions Corp. v. Flerick, 2013 WL 1500452 (6th Cir. 2013), Paul Flerick (“Flerick”) was employed as a salesman in…

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Texas Temporary Injunction Law: Fact-Specific Inquiries

December 20, 2012 / By Robert Wood
Articles // Non Compete Agreements in Texas

Whether an injunction should issue in a particular case involves a fact-intensive analysis.  A recent opinion by the Dallas Court of Appeals demonstrates how the courts may conduct this analysis in cases involving claims for misappropriation of trade secrets and violations of the Texas Theft Liability Act.   A broker/dealer investment services company hired an employee…

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Texas Noncompete Agreements: Not Always Enforceable, Even After Marsh USA

November 9, 2012 / By Robert Wood
Articles // Non Compete Agreements in Texas

Even after the Marsh USA case, some noncompete agreements are still unenforceable in Texas.  In a recent opinion by the Texarkana Court of Appeals, the noncompete agreement stated as follows:  I agree not to seek employment on a temporary, contract or permanent basis at any company where introduced by Hiring Partners, Inc. for a period…

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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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