If you’ve recently left a job and your former employer is threatening you with a non-compete agreement, you’re not alone. Many employees feel stuck—unable to pursue better opportunities because of a contract they signed years ago. In Spain v. ManPow, LLC, a Texas Court of Appeals addressed whether former employees could be legally blocked from working for a competitor. The ruling offers important insight for workers fighting back against non-compete enforcement—and why having the right non-compete defense attorney matters.
What Agreements Did the Employees Sign?
In this case, four individuals—Jacob Spain, Stephen Baker, Conner Ash, and Cole Hayes—had previously worked for a real estate investment company doing business as “New Western.” Spain was a general manager with ManPow, LLC and had signed a formal employment agreement with non-compete, non-solicitation, and confidentiality clauses. The other three were independent contractors for United InvestexUSA 28, LLC (UI 28), and had signed similar Independent Contractor Agreements restricting their ability to compete, solicit clients, or use confidential information after termination.
These agreements barred them from engaging in real estate investment activity in Marion County, Indiana, and surrounding areas for two years after leaving the company. They also prohibited them from contacting any clients or investors they had worked with during their tenure.
What Led to the Lawsuit?
After leaving New Western in early 2024, Spain launched a new company called Aurumys. Within days, Baker, Ash, and Hayes also resigned and joined him. According to New Western, the four began contacting its investors, marketing properties from its database, and recruiting its contractors—direct violations of the agreements they had signed.
New Western sued for breach of contract, misappropriation of trade secrets, and tortious interference, seeking to stop their former workers from competing.
What Type of Injunction Did the Employer Seek?
New Western asked a Texas court for a temporary injunction to stop the former employees from:
- Competing in the wholesale real estate investment business in specified counties
- Soliciting any of New Western’s clients, customers, or investors
- Recruiting its workforce
- Using or disclosing any confidential company information
The goal was to maintain the status quo until a full trial could be held.
What Did the Trial Court Order?
The trial court granted the injunction. It prohibited the defendants from working in the real estate investment space in nine Indiana counties, blocked them from contacting clients they had interacted with at New Western, and required them to delete or return confidential information.
The order included detailed findings, such as specific emails and marketing activity that showed the defendants were soliciting former clients and marketing properties still in New Western’s system.
What the Employees Argued on Appeal
The former employees appealed, arguing that the injunction was too vague and overbroad, violating Texas Rule of Civil Procedure 683. They claimed the court hadn’t clearly defined what actions were prohibited, and that terms like “investor” or “assignment” were too ambiguous. They also argued there was insufficient evidence of harm and that the order improperly applied agreements to affiliate companies who weren’t parties to the contracts.
What the Court of Appeals Held—and Why It Matters
The Court of Appeals upheld the injunction. It ruled that:
- The order met Rule 683’s specificity requirements
- The terms used were understandable based on common meanings
- The agreements were enforceable, and there was evidence that the defendants had violated them
- One affiliate company could enforce the contract as a third-party beneficiary
For employees, this case shows that non-compete clauses can be enforced—but also that every detail matters, including who signed the contract, what the agreement covers, and what kind of evidence is available.
Why You Need a Lawyer If You’re Being Sued Over a Non-Compete
If you’ve received a cease-and-desist letter, been sued, or are worried your former employer might pursue legal action, it’s critical to talk to an attorney who understands non-compete defense.
Here’s what a skilled non-compete lawyer can do for you:
- Review your contract to see if it’s legally enforceable
- Determine whether your job duties and new role even violate the agreement
- Help you respond strategically to legal threats
- Represent you in court if necessary
- Protect your right to work in your chosen field
Texas courts scrutinize non-compete agreements carefully—but they often enforce them if they are reasonable and supported by evidence. You don’t want to navigate this alone.
Are You an Employee Being Threatened with a Non-Compete Lawsuit?
If your employer is trying to stop you from working, you have rights—and we can help you protect them. Our firm regularly defends employees against non-compete enforcement across Texas. We understand how these contracts work, when they’re enforceable, and how to fight back effectively in court.
📞 Contact us today to schedule a confidential consultation with a Texas non-compete attorney.
Let us help you move forward—without being unfairly held back by your past employer.
Leiza Dolghih is the founder of Dolghih Law Group PLLC. She is board certified in labor and employment law and has 16+ years of experience in commercial and employment litigation, including trade secrets and non-compete disputes. You can contact her directly at leiza@dlg-legal.com or (214) 531-2403.