Smooth Transitions

Smooth Transitions

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

Tag Archives: Texas Supreme Court

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

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

Texas Employers and Non-Competes After Marsh

Posted in Non-Compete Agreements
                          We’ve talked about the Texas Supreme Court’s opinion in Marsh USA v. Cook and its legal niceties, but what does it mean for employers and what should they be doing in light of the ruling?  The fact of the matter is we won’t know until lower courts address the opinions, but here are a couple of… Continue Reading

The Texas Non-Compete Game Changer

Posted in Non-Compete Agreements
Analysis from last Friday’s Texas Supreme Court opinion in Marsh USA v. Cook will continue this week as lawyers, employers, and employees struggle with what the non-compete playing field is today. Quite simply put, Marsh USA is a game changer. The ramifications of the case are best set forth Justice Green’s dissent, which was joined by… Continue Reading

Texas Non-Compete Myth #2

Posted in Non-Compete Agreements
                            #2: Non-Compete Agreements Are Unenforceable in Texas. Texas courts have been enforcing non-compete agreements for many years and they are specifically authorized by Texas law – Texas Business and Commerce Code Section 15.50.  The highlights from that statute: a covenant not to compete is enforceable if it is ancillary to or part of… Continue Reading

Is Mike Leach’s lawsuit done?

Posted in Hiring and Firing
Texas Tech won  its appeal against Mike Leach and his claims for millions of dollars in compensation are gone.  The Seventh Court of Appeals, based in Amarillo,  recently took up Texas Tech’s claim of sovereign immunity and reversed the  trial court, finding in Tech’s favor.  The Court ruled in its opinion that Leach cannot maintain a breach of contract claim against the… Continue Reading

Cash for a Non-Compete – The Future of Texas?

Posted in Non-Compete Agreements
                                         As has been widely commented on, the Texas Supreme Court will determine whether stock options can serve as the basis for an employee’s non-compete agreement.  The Dallas Court of Appeals, in Marsh USA v. Cook, ruled that options could not.  A ruling that reverses the Dallas court could  have much wider ramifications:  What would the employment landscape look… Continue Reading

Courtroom Observations: Non-Compete TROs.

Posted in Non-Compete Agreements
                                                Over the last few weeks I’ve been involved in defending and applying for temporary restraining orders in non-compete/trade secret cases in Houston and Dallas County District Courts.  A few observations on those proceedings: It is much easier to get injunctive relief in Texas since after the Texas Supreme Court’s rulings in  Alex Sheshunoff Mgmt.… Continue Reading

Texas Supreme Court Rules Non-Compete Enforceable

Posted in Non-Compete Agreements
                                           In Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, the Texas Supreme Court reversed the Houston Court of Appeals holding that an accountant’s non-compete agreement was enforceable. The Court stated in part: We hold that if the nature of the employment for which the employee is hired will reasonably require the employer… Continue Reading