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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Noncompete Agreements | Contract Law | Employment Law | Fiduciary Duty | Non-Disclosure Agreements | Non-Solicitation Agreements | Physician Contracts | Settlement Agreements | Tortious Interference | Trade Secrets | Trademark Law

| Read Time: < 1 minute | #Fiduciary Duty

Real Estate Disputes–Texas Breach of Fiduciary Duty Law

A recent real estate dispute sheds light on what is required to prove a breach of fiduciary duty claim in Texas. In this case, potential homebuyers contracted to buy a home for $180,000. The seller, the listing agent, the appraisal district, and the real estate agent all indicated that the home’s living area was 2722 square feet. However, the...

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| Read Time: 2 minutes | #Settlement Agreements

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

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, the parties entered into...

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| Read Time: 3 minutes | #Noncompete Agreements

Texas Appeals Court Reverses Denial of Temporary Injunction in Noncompete Case

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, prohibit the employee from...

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| Read Time: < 1 minute | #Noncompete Agreements

Misconceptions Concerning Noncompete Agreements in Texas

On the street, there are many misconceptions about noncompete agreements in Texas.  One myth is that, for a noncompete to be enforceable, the employer must have given the employee a cash payment, or a promotion, or some other monetary benefit.  But this is not the law in Texas.  Usually, what the employer provides to the employee as consideration for...

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| Read Time: 2 minutes | #Noncompete Agreements

In Texas, Noncompete Violation Per Se Can Justify Injunction

Are noncompete agreements enforceable in Texas? You bet they are—more than ever. You know it’s bad news for the employee who is being sued when a court opinion starts with: “Texas law presumes a party has read and knows the terms of the contract that he has signed.” Ever since the Marsh USA decision, Texas courts have increasingly had...

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| Read Time: < 1 minute | #Tortious Interference

Hiring At-Will Employees in Texas. Tortious Interference with Contract?

Is it lawful for a company to hire one of its competitor’s employees? It may seems ludicrous to some to ask this question. But in a recent Texas appellate decision, the court actually considered whether a tortious interference with contract claim to be based upon Company A hiring an at-will employee from Company B. The court held: “A claim...

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| Read Time: < 1 minute | #Non-Solicitation

In Texas, Nonsolicitation Provisions Must Be Reasonable

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, from soliciting or employing...

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| Read Time: < 1 minute | #Noncompete Agreements

Unreasonable Noncompete Agreement Can Subject Employer to Potentially Huge Liability 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 of Appeals shows that...

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| Read Time: < 1 minute | #Physician Contracts

Lack of Buy-Out Provision Kills Physician Noncompete Agreement

The Texas statute governing noncompete agreements contains specific requirements that must be met for a physician noncompete agreement to be enforceable.  One such requirement is that the agreement must contain a provision allowing the physician to "buy out" of the noncompete if he or she wishes to do so. In a recent case from the Houston Court of Appeals,...

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| Read Time: 4 minutes | #Trade Secrets

Misappropriation of Trade Secret Injunctive Relief

Misappropriation of trade secrets is a proper basis for a court to order a temporary injunction; however the language in the injunction must be limited to prevent it from becoming blanket prohibition on competition. In Reliant Hosp. Partners, LLC v. Cornerstone Healthcare Group Holdings, Inc., 374 S.W.3d 488 (Tex. App.—Dallas 2012, pet. filed), Cornerstone Healthcare Group (“Cornerstone”) brought suit...

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