| Read Time: 2 minutes | #Noncompete Agreements

Money for a Noncompete in Texas?

A 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 Reading

| Read Time: 2 minutes | #Noncompete Agreements

Choice of Law in Texas Injunction Hearings

Choice 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

| Read Time: 2 minutes | #Noncompete Agreements

Texas Federal Court Voids Noncompete Agreement

As readers of this blog know, noncompete agreements are increasingly enforceable in Texas.  However, even in Texas, not all noncompete agreements comply with the statutory requirements. In a case decided a few months ago, the United States Court of Appeals for the Fifth Circuit, applying Texas law, held that a particular noncompete agreement was unenforceable.  In that case, the...

Continue Reading

| Read Time: 3 minutes | #Noncompete Agreements

Not all waivers of noncompete agreements are effective

Employees seeking to avoid a non-compete agreement when ending an employment relationship should ensure that their former employer explicitly releases them from the agreement. Such was the case in Try Hours, Inc. v. Douville, 2013 WL 139584 (Ohio App. 2013). In Try Hours, Inc., the Sixth Appellate District of the Ohio Court of Appeals held that an integration clause...

Continue Reading

| Read Time: 3 minutes | #Noncompete Agreements

Sale of Business Noncompete Agreements in Texas

In Texas, non-compete agreements that arise from the sale of a business are relatively more enforceable than those that are contained in an employment agreement.  For example, Texas courts have held that covenants not to compete may be significantly broader in scope if they arise from the sale of a business.  However, as a recent case demonstrates, from the...

Continue Reading

| Read Time: 2 minutes | #Noncompete Agreements

Texas Noncompete Agreements Must Be Reasonable in Scope

Hiring employees, training them, and granting them access to industry secrets or client lists exposes employers to the possibility that employees will utilize this valued information against them.  In order to protect themselves, employers will often include a covenant not to compete provision in an employment contract, commonly known as a “non-compete.”  However, it is important for both employers...

Continue Reading

| Read Time: 2 minutes | #Noncompete Agreements

Choice of Law in Texas Noncompete Litigation

When contracting with another party, it is essential to understand which state law will govern your contract in the event you find yourself in a contractual dispute.  What might seem to be a reasonable provision, agreed upon by all parties, can be interpreted radically different depending upon the state law that will govern your contract.  In legalese, choosing a...

Continue Reading

| Read Time: 3 minutes | #Noncompete Agreements

A Rare Anti-Noncompete Case in Texas

An employee of a small manufacturing company (“Acme Company”) leaves and starts his own competing company (“Best Company”). Acme Company sues the employee for doing so—because the employee signed a noncompete agreement stating that, if he left Acme Company, he would not start a competing business. In the lawsuit, the employee argues, “The existence of my new company, Best...

Continue Reading

| Read Time: 3 minutes | #Noncompete Agreements

Texas Appeals Court Reverses Denial of Temporary Injunction in Noncompete Case

Once again, a Texas appellate court sides with a company suing to enforce a noncompete agreement.  This time, the employer sued a former employee for violating a covenant prohibiting the employee for competing for three years following the termination of his employment.  Significantly, the noncompete covenant contained no geographic restriction.  It did not, for example, prohibit the employee from...

Continue Reading

| Read Time: < 1 minute | #Noncompete Agreements

Misconceptions Concerning Noncompete Agreements in Texas

On the street, there are many misconceptions about noncompete agreements in Texas.  One myth is that, for a noncompete to be enforceable, the employer must have given the employee a cash payment, or a promotion, or some other monetary benefit.  But this is not the law in Texas.  Usually, what the employer provides to the employee as consideration for...

Continue Reading