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 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...
Continue ReadingUnder Texas law, non-compete agreements involving a physician in some situations must include a handful of provisions (“requirements”) in order for the non-compete to be enforceable. One such requirement is that a physician non-compete agreement must contain a buyout provision. When must a buyout provision be included? Are requirements like buyout provisions required in all non-competes involving a physician,...
Continue ReadingWorldwide Geographic Restriction of Texas Noncompete Agreements May Be Enforceable Last revised: 10.17.16 In the past, Texas courts have not fully embraced the ability of a non-compete agreement to restrict an employee from working anywhere in the world. In several cases, Texas courts have held that the proper geographic scope of a noncompete agreement is the territory in which...
Continue ReadingIn Texas, the statute of limitations for breach of contract is four (4) years. The period begins from the day the contract was breached. What is a statute of limitation? The statute of limitations first appeared in early Roman law. It later developed into the criminal and civil common law of England. The purpose of the statute of limitations in a...
Continue ReadingSettlement Agreements: Fraudulent Inducement and the Duty to Read Your Contract Settlement agreements are contracts. They impose binding obligations on both parties. Consider the following example: Employer sues ex-employee for breach of non-compete. Employee files a counterclaim for unpaid sales commissions. Eventually, the two parties sign a settlement agreement. As part of the settlement agreement, the parties agree to release all...
Continue ReadingAs an employer, your trade secrets are the heart of your business. Knowing every manner available to protect those trade secrets could make a big difference in future of your business. A claim for misappropriation of trade secrets is one way an employer can protect its interests. Under Texas law, a misappropriation of trade secrets claim not only can...
Continue ReadingMany businesses have a list of vendors or suppliers they routinely use in the course of business. This list of vendors is often compiled after years of effort and references the vendors that the business knows to sell high quality products at a good value. Arguably, this information is a trade secret because it could only have been discovered after many years...
Continue ReadingIn recent years, Texas courts have shown support for the employer’s use of non-compete agreements. The courts have done so by finding certain requirements of enforceability implied in non-compete agreements in some circumstances. Despite this trend, in June 2015, the federal appellate court that covers Texas ruled that a duty to keep information confidential cannot be assumed into a...
Continue ReadingA Texas appellate court recently addressed the question of whether money is sufficient to support a non-compete agreement. The court ruled that money was not enough and that the non-compete’s purpose must be to protect a legitimate business interest. The contract at issue was for a company (“Company A”) to provide hospitalist services and to coordinate the hiring of...
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