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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Whether 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....
Continue ReadingNoncompete agreements in the context of a sale of a business have long held to be more enforceable than restrictive covenants in an employer/employee context. This was recently reaffirmed in a case handed down by the Fort Worth Court of Appeals. There, the owners of Company A sold their shares to Company B. As part of the sale, Company...
Continue ReadingIt has long been believed by some Texas lawyers that attorneys’ fees are not recoverable under a claim for breach of a noncompete agreement. This assumption has been based upon the language of the Texas noncompete statute, which states that the remedies provided by the statute “are exclusive and preempt any other criteria for enforceability of the covenant not...
Continue ReadingThe Houston Court of Appeals recently decided a case in which a former employee lost his company stock because he competed with his former employer. In the case, the employee had been awarded several thousand shares of restricted stock. The stock award document stated that the company could recover the stock if the employee engaged in "detrimental activity," which...
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