Category Archives: Non-Competes

When Is a Non-Compete Not a Non-Compete? The Texas Supreme Court’s Decision in Exxon v. Drennen

On its face, the recent Texas Supreme Court decision in Exxon Corp. v. Drennen, No. 12-0621 (Tex. Aug. 29, 2014), might seem to have limited relevance to Texas law.  The Court held that the case was governed by New York law and decided the case based on New York precedent.  But a closer look at… Read More »

Fort Worth Court of Appeals Finds Non-Compete Unenforceable Due to Waiver and Overbreadth

In an unpublished opinion, the Fort Worth Court of Appeals found that a non-compete was unenforceable due to waiver and overbreath. Ally Financial, Inc. v. Gutierrez, No. 02-13-00108-CV (Tex. App. — Fort Worth Jan. 23, 2014). Gutierrez worked for Ally in Lewisville, Texas. Ally adopted a compensation incentive plan (CIP) under which certain employees (including… Read More »

Houston Court of Appeals Affirms Denial of Injunction in Physician Non-Compete Case

Lasikplus of Texas, LLC v. Mattioli, No. 14-12-01155-CV (Tex. App. — Houston [14th Dist.] Nov. 21, 2013), addressed the availability of a temporary injunction to enforce the non-compete in a physician’s contract. Dr. Mattioli worked for Lasikplus under a contract that contained a non-compete and a provision requiring 120 days notice of termination. Dr. Mattioli… Read More »

Beaumont Court of Appeals Finds a Non-Compete Overbroad When the Employer Failed to Justify the Need for the Restrictions

           On June 13. 2013, the Beaumont Court of Appeals issued its opinion in Hodgson v. U.S. Money Reserve. Inc., No. 09-13-00074-CV (Tex. App. – Beaumont 2013, no pet.).  This is an unpublished decision, but it is nonetheless interesting because it shows how one court of appeals is analyzing non-compete issues in the post-Marsh era…. Read More »

Fourteenth Court of Appeals: An Employer May Not Recover Attorneys’ Fees When a Non-Compete Is Reformed

The Fourteenth Court of Appeals considered whether a frachisor who successfully obtained an injunction enforcing a non-compete could recover attorneys’ fees when the trial court reformed the non-compete before entering the injunction.  The case is Franlink, Inc. v. GJMS Unlimited, Inc., No. 14-12-00290-CV (Tex. App. — Houston [14th Dist.] April 25, 2013) (to be reported)…. Read More »

Are Non-Competes Enforceable in Texas?

In many states, an employer will have great difficulty enforcing a covenant not to compete.  In fact, in some states, non-competes are contrary to public policy and are never enforceable (or are enforceable only in specific circumstances such as the sale of a business). Texas is not one of those states.  Texas law will enforce… Read More »