Articles

Temporary Injunction Denied in Texas Noncompete Case

November 9, 2010 / By Robert Wood
Articles // Non Compete Agreements in Texas

A recent case from the Beaumont Court of Appeals highlighted the difficulty that employers sometimes face in enforcing noncompete agreements in Texas.  In this case, a physician practice group sued one of its former physicians for violating a noncompete agreement.  The physician had left the practice and started his own practice within the proscribed 22-mile…

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Scope of Noncompete Agreements

November 8, 2010 / By Robert Wood
Articles // Non Compete Agreements in Texas

The Fort Worth Court of Appeals recently issued a very interesting opinion on the geographic scope of noncompete agreements in Texas. In this case, a publishing company did business in Johnson County, Texas. The company hired the defendant to sell advertising for it. The defendant’s job duties were performed in Johnson County. The defendant resigned…

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Tortious Interference and Prior Restraint.

August 19, 2010 / By Robert Wood
Articles // Tortious Interferance

In Texas, when can a court enjoin speech in order to prevent tortious interference from occurring? There is no easy answer to this question. However, courts generally disfavor “prior restraint”–i.e., forbidding speech even before it occurs. Thus, Texas courts have held that even speech that is false or defamatory cannot be prohibited by court order….

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Texas Trial Court Abused Discretion By Denying Temporary Injunction

May 18, 2010 / By Robert Wood
Articles // Non Compete Agreements in Texas

In a recent case in Houston, a state trial court’s denial of an application for a temporary injunction was overturned.  In denying the requested temporary injunction, the court had failed to receive any testimony that might have supported the issuing of an injunction.  The court of appeals held that failing to receive testimnony necessitated reversal of the trial court’s ruling, for the following reasons:…

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Does Constructive Discharge Affect Enforceability of Texas Noncompete Agreement?

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

In a recent case in a federal district court in Texas, the defendants–individuals who had signed non-compete agreements with their previous employer–contended that their agreements should not be enforceable because they were "constructively discharged" (i.e., forced to resign).  The federal district court rejected this contention.  In doing so, the court noted that "termination of at-will employment does not…

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Enforcement of Non-Solicitation Agreements in Texas

April 17, 2010 / By Robert Wood
Articles // Non Solicitation Agreements in Texas

A recent appellate case from Houston demonstrates that, in determining whether non-solicitation agreements are enforceable, Texas courts treat them as non-compete agreements. In the case, an insurance broker was bound by an employment agreement that contained the following provision: Accordingly, the Executive understands and agrees that for a period of two (2) years following the…

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Texas Customer Solicitation Restrictions. Unfair Competition Law in Texas.

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

Texas noncompete agreements routinely contain a provision prohibiting an employee from soliciting, or doing business with, her employer’s customers (except on her employer’s behalf).  Not infrequently, these provisions preclude the employee from soliciting any of her employer’s customers.  However, some Texas cases have held that such provisions are too broad. Several Texas cases have held…

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Scope of Noncompete Agreements in Texas

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

Assuming a non-compete agreement in Texas is worded properly and supported by adequate consideration, the next question is whether the restrictions contained in the agreement are reasonable.  Texas courts have routinely held that the scope of the restrictions should bear some relationship to the activities that the employee performed for his former employer.  For example,…

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