Over the past decade, Attorney Robert Wood has published hundreds of articles on the Texas Contract & Noncompete Disputes Blog, establishing himself as an authority on Texas noncompete law. If you want to gain a better understanding of how non-compete and other contractual issues are handled in the Texas courts, you’re in the right place.
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Many wars have been fought in Texas courts over the enforceability of non-compete agreements. But relatively few have been waged over the enforceability of Texas non-disclosure agreements. The reasons for this are many, including the fact that Texas courts have routinely held that, unlike noncompete agreements, nondisclosure agreements do not restrain trade; hence, they are far more enforceable. Also,...
Continue ReadingWhat is a Trade Secret Under Texas Law? Every business has some amount of confidential and proprietary information that it does not want its competitors to know. When someone uses a business’ confidential information without consent or threatens to do so, filing a claim for misappropriation of trade secrets is one way for a business to protect its information. However, in...
Continue ReadingPhysician employment agreements are very prevalent. Unlike most Texas employees who are employed on an at-will basis, physicians typically have written agreements that can be worth hundreds of thousands, if not millions, of dollars. In our practice, we see many disputes between physicians and their employers from both sides of the fence. Quite often these disputes are between practices or institutions and...
Continue ReadingEmployees owe various duties to their employers, including a general duty of loyalty. This duty requires employees to act primarily for the benefit of their employer in all matters connected with their employment. Failure to do so may constitute a breach of fiduciary duty, or breach of the duty of loyalty. Examples of Employee Fiduciary Duty in Texas An employee...
Continue ReadingDoes the Texas noncompete statute apply to independent contractors as well as employees? Although there is not much case law on this, the answer is almost certainly yes. One case in particular out of the Fort Worth Court of Appeals dealt with a noncompete agreement dispute involving an independent contractor. Neither the company attempting to enforce the noncompete nor...
Continue ReadingWhether you are an experienced physician or you are just out of residency, you need to know how to negotiate a proper employment contract. Unfortunately, many physicians make serious mistakes when negotiating the terms of their employment, thereby putting themselves in a vulnerable position. Negotiating a physician employment contract is a deeply complex process. To protect your legal rights...
Continue ReadingDoes your company need to have its employees sign noncompete agreements? If your company fits into any of these categories, the answer is almost certainly “Yes.” I have clients that I need to protect. Some of these clients have been with me for years, and we have, through hard work over a period of time, developed good relationships with...
Continue ReadingIn Texas, a business and/or employer can bring a claim for misappropriation of trade secrets if a competitor or employee acquires a business’s trade secrets improperly or uses them without permission. Tantamount to establishing a misappropriation of trade secrets claim is establishing that a trade secret, in fact, existed. Under Texas law, a “trade secret” is defined as follows:...
Continue ReadingMany noncompete cases are filed after an employer learns that an ex-employee is violating his covenant not to compete. Sometimes, an ex-employee competes for several months before an employer discovers that the ex-employee is doing so. This is especially possible in an age in which much commerce is done via the internet. Thus, by the time an employer discovers...
Continue ReadingUnder Texas law, parties may only be entitled to recover their attorneys’ fees if permitted by statute, by a contract between the parties, or under equity. At times, there may be multiple avenues for a prevailing party to receive attorneys’ fees. However, at other times, a statute may preempt, or override, every other avenue to attorneys’ fees. Actions for...
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