Covenant not to compete cases normally arise when an employer seeks to enforce a restrictive covenant by having a former employee enjoined from breaching the covenant and working for a competitor. They can also arise when the employee is not expressly prohibited from competing, but is subjected to severe economic penalty if he engages in
noncompetition
Physician Noncompetes: Part 1 Reasonable Limitations On Time And Geographic Scope
I’ve written before about the unique requirements that must be included in a noncompetition agreement with a Texas physician. The increasing likelihood that a Texas court will enforce a noncompetition agreement against any departing employee increases the importance that physicians and practice groups take great care in negotiating and drafting agreements with proper limitations as…
Does Texas Law Recognize a Claim against Competitor’s Poaching of Employee?
Many times one competitor sues another competitor over the hiring or two or more employees (whether over allegations of a breach of contract or misappropriation of trade secrets), the Complaint will make allegations of employee "poaching". This gives rise to the question about whether Texas recognizes a cause of action for one competitor’s poaching of another competitor’s…
Dallas Court Strikes Physician Noncompete that Lacked Buy-Out Provision
I’ve previously written about the specific requirements that must be included in a covenant not to compete with a licensed physician to make the restrictive covenant enforceable. The Dallas Court of Appeals recently affirmed a trial court’s decision that a noncompetition agreement between a surgical practice and several limited-partner physicians was unenforceable because the agreement lacked one of the statutorily required…
“Mad Men” Teaches What Not To Do When Leaving An Employer to Form a Start-Up Competitor
Last week’s season finale of AMC’s critically acclaimed series "Mad Men" shows a prime example of how to get involved in big time litigation when leaving a former employer to start-up a competing enterprise or work for a competitor. Mad Men is a made for cable series set in the 1960’s about a Madison…