In Texas, client non-solicitation agreements are subject to the same rules as the non-compete agreements. Therefore, they must be “reasonable” and “not impose a greater restraint than is necessary to protect the goodwill or other business interest” of the employer.
Author: Leiza Dolghih
I advise my clients on how to reduce their exposure to litigation through properly drafted agreements and well-designed business practices, and I also help them litigate and arbitrate any business and employment disputes, when they arise.
Wrong Zoom Settings Cost a Company Its Trade Secrets Injunction
Under both, the federal Defend Trade Secrets Act and the various state Uniform Trade Secrets Acts, an owner of trade secrets must take “reasonable measures” or reasonable steps to protect the trade secrets from being disclosed.
Are Courts Actually Enforcing Non-Compete Agreements During the Pandemic?
While the enforcement of non-compete agreements around the country remains strong, the courts are looking closer at whether an employee will suffer “undue hardship” if his or her non-compete is enforced. Thus, employers should avoid taking unreasonable positions in court and be prepared to explain why enforcing a particular non-competition agreement will not prevent an employee from earning a living.
Enforcing Promissory Notes in Texas
To prevail on its claim to collect on a promissory note, a lender must prove (1) the existence of the promissory note in question, (2) that the alleged recipient of the funds signed the note, (3) that the lender is the owner or holder of the note, and (4) that a certain balance is due and owing on the note.
Non-Compete Agreements Related to a Sale of Business
In Texas, a 5 to 10 year non-compete agreement related to a sale of business is the norm. n addition to the non-compete restrictions in the sale documents, those sellers who stay employed by the buyer after the sale often sign a second non-compete agreement as part of their employment package, which does not kick in until after their employment with the buyer terminates.
Texas Employer Ordered to Pay Healthcare Employee’s Attorney’s Fees in a Non-Compete Dispute
A recent decision from the Thirteenth Court of Appeals in Texas serves as a cautionary tale for Texas employers seeking to enforce their non-compete agreements. In this case, a company that provided surgical assistants to surgical facilities and physicians sued a former employee for breaching his 2-year non-compete covenant, which prohibited him from “in any way” offering his services to any “client institutions or client surgeons” of his former employer.