Does 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 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 ReadingAs an employer, your trade secrets are the heart of your business. Knowing every manner available to protect those trade secrets could make a big difference in future of your business. A claim for misappropriation of trade secrets is one way an employer can protect its interests. Under Texas law, a misappropriation of trade secrets claim not only can...
Continue ReadingIn recent years, Texas courts have shown support for the employer’s use of non-compete agreements. The courts have done so by finding certain requirements of enforceability implied in non-compete agreements in some circumstances. Despite this trend, in June 2015, the federal appellate court that covers Texas ruled that a duty to keep information confidential cannot be assumed into a...
Continue ReadingA Texas appellate court recently addressed the question of whether money is sufficient to support a non-compete agreement. The court ruled that money was not enough and that the non-compete’s purpose must be to protect a legitimate business interest. The contract at issue was for a company (“Company A”) to provide hospitalist services and to coordinate the hiring of...
Continue ReadingChoice Of Law in Injunction Hearings In a prior post on Choice of Law in Texas Noncompete Litigation, we discussed the need for a well-thought-out choice of law provision in noncompete agreements. The courts have again highlighted the importance of this, but this time, it is within the context of temporary injunctions. Cameron International Corporation v. Guillory, a recent...
Continue Reading