Employees owe various duties to their employers, including a general duty of loyalty. This duty requires employees to act primarily for the benefit of their employer in all matters connected with their employment. Failure to do so may constitute a breach of fiduciary duty, or breach of the duty of loyalty. Examples of Employee Fiduciary Duty in Texas An employee...
Continue ReadingDoes the Texas noncompete statute apply to independent contractors as well as employees? Although there is not much case law on this, the answer is almost certainly yes. One case in particular out of the Fort Worth Court of Appeals dealt with a noncompete agreement dispute involving an independent contractor. Neither the company attempting to enforce the noncompete nor...
Continue ReadingNEWS: Major Update to Physician Noncompete Law Takes Effect September 1, 2025 Whether you are an experienced physician or you are just out of residency, you need to know how to negotiate a proper employment contract. Unfortunately, many physicians make serious mistakes when negotiating the terms of their employment, thereby putting themselves in a vulnerable position. Negotiating a physician...
Continue ReadingDoes your company need to have its employees sign noncompete agreements? If your company fits into any of these categories, the answer is almost certainly “Yes.” I have clients that I need to protect. Some of these clients have been with me for years, and we have, through hard work over a period of time, developed good relationships with...
Continue ReadingIn Texas, a business and/or employer can bring a claim for misappropriation of trade secrets if a competitor or employee acquires a business’s trade secrets improperly or uses them without permission. Tantamount to establishing a misappropriation of trade secrets claim is establishing that a trade secret, in fact, existed. Under Texas law, a “trade secret” is defined as follows:...
Continue ReadingMany noncompete cases are filed after an employer learns that an ex-employee is violating his covenant not to compete. Sometimes, an ex-employee competes for several months before an employer discovers that the ex-employee is doing so. This is especially possible in an age in which much commerce is done via the internet. Thus, by the time an employer discovers...
Continue ReadingUnder Texas law, parties may only be entitled to recover their attorneys’ fees if permitted by statute, by a contract between the parties, or under equity. At times, there may be multiple avenues for a prevailing party to receive attorneys’ fees. However, at other times, a statute may preempt, or override, every other avenue to attorneys’ fees. Actions for...
Continue ReadingNEWS: Major Update to Physician Noncompete Law Takes Effect September 1, 2025 Under Texas law, non-compete agreements involving a physician in some situations must include a handful of provisions (“requirements”) in order for the non-compete to be enforceable. One such requirement is that a physician non-compete agreement must contain a buyout provision. When must a buyout provision be included?...
Continue ReadingIn Texas, the statute of limitations for breach of contract is four (4) years. The period begins from the day the contract was breached. What is a statute of limitation? The statute of limitations first appeared in early Roman law. It later developed into the criminal and civil common law of England. The purpose of the statute of limitations in a...
Continue ReadingSettlement Agreements: Fraudulent Inducement and the Duty to Read Your Contract Settlement agreements are contracts. They impose binding obligations on both parties. Consider the following example: Employer sues ex-employee for breach of non-compete. Employee files a counterclaim for unpaid sales commissions. Eventually, the two parties sign a settlement agreement. As part of the settlement agreement, the parties agree to release all...
Continue Reading