Non-compete cases that are well lawyered should be resolved early in the litigation process. Why do I say that? If the plaintiff is an aggressive former employer it will in most instances move for a temporary restraining order followed by an application for a temporary injunction in Texas state court. In that process a lot of things can happen. First, the parties will have appeared before a judge and gotten a flavor for how the judge will rule and what the judge thinks of each parties’ claims and defenses. Second, there may be expedited discovery including document productions and depositions. The judge may even order the case to mediation to avoid having to spend court time on a temporary injunction hearing – which is like a mini-trial.
Recent Cases
Summary Jury Trial Texas Style
Trade Secret Theft – By Lawyers
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
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Nothing Like A Hair Stylist Non-Compete Case
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
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You want to exclude my client from the courtroom?
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…
The Fan Duel Update
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…
The Fifth Circuit Chimes In on Inevitable Disclosure
We’ve discussed the inevitable disclosure doctrine in previous posts. It’s a powerful claim and whether adoption of the uniform trade secrets act makes it viable in Texas remains to be seen. What is it? Assume that in your prior job you were exposed to certain trade secrets of your employer that you would “inevitably”…
First Uber – Now Amazon – Independent Contractor or Not?
Breaking Down the Texas Non-Compete Case
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
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Texas Minority Shareholders – Along for the Ride.
Frequently when I counsel a minority shareholder about their rights I tell them what they already know – “they are along for the ride”. What does that mean? That as long as the other (controlling) shareholders don’t violate the law or their shareholder agreements, there is little a minority shareholder can do about it. …