Articles

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…

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To Be Enforceable, Settlement Agreements in Texas Must Be Carefully Worded

/ By Robert Wood
Articles

A recent Texas appellate decision demonstrates the importance of ensuring that settlement agreements are properly worded. In the case, three employees of Company A left and formed Company B. Company A sued the former employees, as well as Company B, for misappropriation of trade secrets and unfair competition. As often happens in unfair competition cases,…

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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,…

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In Texas, Nonsolicitation Provisions Must Be Reasonable

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

Even though noncompete and nonsolicitation provisions generally are enforceable in Texas, they must be reasonable in scope. In a recent case from the Fort Worth Court of Appeals, the court held that a provision prohibiting solicitation of employees was too broad and, therefore, unenforceable. The provision in question prohibited the employee, for a two-year period,…

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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…

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