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As an opinion by the El Paso Court of Appeals demonstrates, even apart from a written contract, certain employees owe a fiduciary duty to their employers. In that case, a number of employees worked for home health care agency A, which provided home health care, hospice care and primary care to its patients. During their employment, the employees had...
Continue ReadingAn opinion by the Dallas Court of Appeals shows how the courts apply the Texas Noncompete statute to covenants involving physicians. In the opinion, a surgery center was registered as a limited partnership. The general partner was a corporation, and the limited partners were physicians. The partnership agreement prohibited the limited partners from owning an interest in a competing...
Continue ReadingAn opinion by the San Antonio Court of Appeals demonstrates that in order to prevail on a claim for tortious interference of contract, the claimant need not prove an outright threat. Certain statements and requests may be sufficient. A salesman was recruited to work for a company by a general manager and a sales manager. Later that year,...
Continue ReadingWhether 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 as a Vice President....
Continue ReadingWhat constitutes “usurpation of corporate opportunity”? There is no clear answer. However, an opinion by the Texarkana Court of Appeals is instructive. During merger negotiations, the company’s Chief Financial Officer (who was also a director and stockholder in the company) and another director/stockholder agreed that the CFO would waive an important provision in his employment contract in exchange for...
Continue ReadingA recent opinion by the Dallas Court of Appeals demonstrates that conduct in violation of an employment agreement may also constitute tortious interference. In that case, two companies provided in-home nursing care for seriously ill pediatric patients. Several employees of Company A went to work for Company B, including the Chief Operating Officer, a case manager and an...
Continue ReadingA recent opinion by the Dallas Court of Appeals explains what constitutes a trade secret and gives an example of information acquired through unfair means. The court defines a trade secret as “any formula, pattern, device, or compilation of information that is used in one’s business and presents an opportunity to obtain an advantage over competitors who do not...
Continue ReadingAs a recent opinion by the Fifth Circuit indicates, an employment agreement that provides that all work product created by the employee becomes the property of the employer may give rise to a fiduciary relationship between the employee and employer. In that opinion, a company entered into an employment agreement with a chemist. The contract provided that “[a]ny formulae,...
Continue ReadingA recent opinion by the Dallas Court of Appeals demonstrates that merely inducing a party to a contract to do something that it is permitted to do under the contract generally cannot, standing alone, constitute tortious interference. In that case, a bank held a piece of real property in trust. A partnership executed a contract with the bank to...
Continue ReadingEven 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 of ninety (90) days....
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