Smooth Transitions

Smooth Transitions

addressing the Legal issues arising from the departure of employees & Business breakups

Category Archives: Injunction

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The Non-Compete Buyout

Posted in Hiring and Firing, HR Issues, Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Trade Secrets
  One option we’ve never spent much time discussing here as it relates to non-competes is the buyout option – on both sides.  Buying out a non-compete is neither new nor novel.  Physician non-competes in Texas require that the non-compete provision include a buyout option.   The statute provides: the covenant must provide for a… Continue Reading

NY Times Non-Compete Article

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Trade Secrets
I don’t think I’ve ever dedicated a post to a newspaper article but a recent New York Times article entitled “How Noncompete Clauses Keep Workers Locked In” does a great job addressing the human toll of non-competes.  Here is a link to the article.  The article is generally anti-non-compete when it comes to lower paid… Continue Reading

Trade Secret Theft – By Lawyers

Posted in Injunction, Non-Compete Agreements, Recent Cases, Uncategorized
    A couple of weeks ago we wrote about the rationale behind why Texas lawyers aren’t subject to non-compete agreements.  That said, generally lawyers aren’t permitted to compete with their current law firm/employer while still employed.  That seems pretty basic.  Imagine this fact pattern pulled from the allegations from the above lawsuit: Lawyer works… Continue Reading

Why Texas lawyers aren’t subject to non-competes.

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements
  Quite often I have lawyer friends ask me why Texas lawyers (and lawyers from other states) aren’t the subject of non-competes?  There aren’t really any cases that I’ve run across on the subject, which sometimes is an indicator that law firms aren’t trying to enforce them.  The answer is not that complicated. Queue Texas… Continue Reading

Texas Non-Competes Without Geographical Restrictions

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Trade Secrets
A Texas non-compete must satisfy two main components to be enforceable. The non-compete has to be ancillary to an otherwise enforceable agreement and be reasonable in time and scope. Before the Texas Supreme Court this week was a case where the court was asked to consider a non-compete without a geographical restriction and consider whether such an… Continue Reading

Nothing Like A Hair Stylist Non-Compete Case

Posted in HR Issues, Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Recent Cases, Uncategorized
The details are slim from a recent article from the New York Post about a $3 million dollar non-compete/breach of contract case against a New York City hair stylist.  What we know: Stylist Annie Rush worked at the salon for 6 years; Apparently she is alleged to have signed a 1 year non-compete (that is… Continue Reading

Utah Leads the Way on Non-Compete Legislation

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Uncategorized
  I went to school in Utah and manage to ski up there every so often.  That’s a picture of my son and I in December.  Recently I ran accross an article  breaking down changes to Utah’s and Idaho’s non-compete laws.  The Utah statute really grabbed my attention.  The highlights: (1) non-competes can only last… Continue Reading

You want to exclude my client from the courtroom?

Posted in Injunction, Recent Cases, Trade Secrets, Trial and Pre-Trial Procedure, Uncategorized
Imagine you are int he courtroom with your lawyer in a trade secret lawsuit.  Your company is accused of stealing trade secrets from a competitor.  Then imagine the Judge tells you you have to leave the courtroom because the other side does not want yout to hear what its trade secrets are.  This issue (though… Continue Reading

The Fan Duel Update

Posted in Injunction, Recent Cases, Uncategorized
A few weeks ago we touched on the “insider trading” that was going on at the fantasy sites Fan Duel and Draft Kings.  It ended up being the subject of a Republican Debate and then the  the New York Attorney General got involved.  He claims the websites are nothing but betting and it trying to… Continue Reading

Breaking Down the Texas Non-Compete Case

Posted in Executive Compensation, Hiring and Firing, Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Recent Cases
  There is a good article from the Houston Chronicle this week outlining a non-compete dispute between two former compensation consultants and their former employer.  The facts are pretty standard fare for this type of dispute: professionals have some type of non-compete agreement with former employer; former employer finds out professionals are leaving in violation… Continue Reading

5 Injunction Non-Compete Lessons

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements, Trade Secrets, Trial and Pre-Trial Procedure, Uncategorized
For the last few months I’ve been involved in a number of temporary restraining order/preliminary injunction cases in state and federal courts in a number of different industries/professions. Some general reminders/lessons from non-compete/non-solicit fights: Signed Agreements – Make sure the non-compete agreements at issue are signed.  Some companies have their employees execute agreements on line… Continue Reading

Texas Non-Competes – The More Things Change…

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements
It’s been 3 and a half  years since the Marsh opinion that redefined what could constitute consideration for a Texas non-compete and courts have bee relatively quiet on non-competes since then.   That’s not surprising from the Texas Supreme Court as Marsh was the third of a trilogy of opinions dealing with the subject.  Appellate courts… Continue Reading

Amazon on the Prowl

Posted in Injunction, Non-Compete Agreements, Non-Solicitation Agreements
In Seattle, former Amazon Web Services Strategic Partnership Manager Zoltan Szabadi was sued by Amazon for violation of his non-compete agreement.  Szabadi is now with Google in their cloud platform business.  The lawsuit alleges: Szabadi was directly and integrally involved with the marketing of Amazon’s cloud computing business to its partners and resellers, and played… Continue Reading

TRO Tips/Thoughts

Posted in Injunction
           Just a few random thoughts on Non-Compete/Non-Solicit TROs after some recent experiences: Hopefully the other side is represented by counsel – Despite popular belief the ex parte TRO is in many instances much harder to get than one where the other side is represented by counsel. It’s just easier when… Continue Reading

Show Me The Money – Injunctions Aren’t Cheap

Posted in Injunction
         Last week I had the opportunity to speak to the Dallas-Fort Worth Recruiters Network about non-compete agreements. One of the questions that came up was what type of fees should a litigant who is either trying to enforce or defend a non-compete anticipate? Though an exact dollar amount will vary based… Continue Reading

Don’t Ignore a TRO

Posted in Injunction
                                In Texas a party seeking a temporary restraining order can do so ex parte – without the presence of the other side. In Dallas, most cases require that Plaintiff seeking the TRO provide the other side with the actual pleadings and a proposed Temporary Restraining Order two hours before any hearing.   When the… Continue Reading

Wine and Non-Competes

Posted in Injunction
                                             A recent non-compete/injunction opinion was delivered by Judge Marcia Cooke who presides in the Southern District of Florida.  The opinion deals with the departure of a California wine executive to another competitor. It addresses many of the issues addressed in this blog under Florida law including choice of law issues, whether customer information is… Continue Reading

Texas Non-Compete Myth #1

Posted in Injunction, Non-Compete Agreements
                            #1: Employers can’t enforce non-competes when they terminated the employee. Wrong – Assuming the non-compete satisfies Texas law, it can survive termination or resignation.  Most agreements will spell this out in the agreement, some do not.  (Now of course this also assumes the firing was legal, i.e., not based on race, national origin,… Continue Reading

The Equity Defense

Posted in Injunction
                                                The difference between equitable claims and legal claims goes back hundreds of years when there were essentially 2 different courts depending upon the relief sought.  District courts and county courts in Texas can award both equitable and legal relief.  So what does that mean? A claim for injunctive relief is equitable.  Also, a… Continue Reading

Non-Compete Enforcement Tips

Posted in Injunction, Non-Compete Agreements, Trade Secrets
                      I liked Jay Shepherds’ remarks in Eight Ways to Lose a Non-Compete Case blog entry.    Here they are with my thoughts in italics: Putting too much faith in the belief that the court will enforce the language of the non-compete agreement as written. Trying to enforce a non-compete against employees who really don’t… Continue Reading
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