NON-COMPETE LITIGATION ATTORNEYS
Dallas, Texas
Our business litigation attorneys prosecute and defend disputes arising out of breaches of non-compete agreements and employment contracts.
NON-COMPETITION AGREEMENTS AND TRADE SECRETS
What is a Non-Compete Agreement?
A non-compete agreement is a contract between an employee and an employer in which the employee agrees not to enter into competition with the employer during or after employment for a specific period of time. Non-competes are useful to employers in cases where an employee has important confidential information or trade secrets. Non-compete agreements should be used for employees that have or will receive access to confidential information, trade secrets, client lists, or marketing strategies. A proper non-competition agreement is the first step in protecting your confidential and proprietary business information. Our business and IP litigation lawyers draft and litigate non-compete agreements in both federal and state courts.
Drafting a Non-Complete Agreement for Enforcement?
When drafting a non-compete agreement, you must first consider the state's law in which the employer-employee relationship is formed. State law governs the interpretation and enforceability, of non-compete agreements. Generally, in a non-compete agreement, the employer agrees to provide specialized training or divulge confidential and proprietary information to the employee and, in return for the receipt of specialized training or confidential information, the employee promises not to work for a competitor for a reasonable period of time and often within a defined geographic location. Further, n on-compete agreements must be supported by adequate consideration. Adequate consideration would include the employer providing the employee something of value that the employee is not otherwise entitled to receive in return for the employee's promise not to compete with the employer. So, in summary, to be enforceable a non-compete agreement must satisfy the following requirements:
- Basic contract law, including adequate consideration; and
- State law specific to the employer-employee relationship.
Non-Compete Agreements and At Will Employment
At-will employment is employment that the employer or employee can lawfully terminate at any time. In some state jurisdictions, the offer of at-will employment alone is adequate consideration for a non-compete if and only if the non-compete agreement was entered into at the beginning of the employment relationship. If the employer-employee relationship has already commenced, some additional consideration will be required to ensure the enforceability of the non-compete agreement.
In Texas, an offer of at-will employment is not enough. A Texas non-compete agreement must protect an employer's legitimate business interest. The consideration furnished by the employer to the employee for the non-compete must be connected to those interests. Adequate consideration in Texas would include a promise to provide an employee with highly specialized training or confidential formation designed to further the specific business interests protected by the non-compete. The geographic scope of the non-compete agreement is determined by the employee's activities, not those of the employer. Our business litigation attorneys have earned a reputation for being aggressive, responsive, efficient and, most importantly, successful.
Dallas Non-Compete Litigation Lawyers
Our Dallas litigation attorneys have earned a reputation for aggressive, responsive, efficient, and most importantly, successful litigation. While we are prepared to take every case to trial, we know from our clients' perspective that often, the best litigation is the one that settles in mediation. Our straight forward unbiased guidance can help you avoid litigation whenever possible. However, if needed, our litigators are skilled in negotiation techniques and have a reputation for achieving very favorable results for our clients both in-court and out-of-court.
Additional Non-Compete Litigation Focus
Preparing for Texas Non Compete Litigation
An employer is often shocked to learn when and how an employee appears to be violating a non-compete agreement. It usually comes from customers or vendors first, and the immediate threat to the employer's business appears real. Thus, the employer should act quickly when it suspects an employee is violating a non-compete agreement. It's important not to rely solely on statements from customers or vendors. Employers should promptly contact a lawyer to start an investigation as follows:
- Gather all employment documents signed by the employee;
- Reconfirm your non-compete agreement meets your state requirements;
- Evaluate whether the employee’s conduct violates a non-compete agreement;
- Gather evidence to be used if legal action is necessary;
- Send a demand letter to the employee reminding the employee of his or her obligation under the non-compete agreement; and
- Prepare and file a non-compete litigation in the proper jurisdiction.
Refrain from contacting vendors, clients, or customers about a suspected violation of a non-compete without legal clearance. Our business litigation team can assist you in performing these investigative steps and determining how best to proceed towards successful non-compete litigation.
Preserving Electronic Evidence for Non Compete Litigation
Employers suspecting that an employee violated a non-compete agreement can often obtain valuable evidence from the employee’s computer. Often trade secret information stored in electronic form is uploaded, emailed, printed, or otherwise taken in some manner by the departing employee's machine. A computer forensic expert may be needed to determine if an employee deleted files off the computer or transferred confidential documents to a thumb drive or cloud storage. In some cases, it is recommended that the employer disconnect power to the computer and not allow the computer to reboot or go through any software updates, which could overwrite forensic evidence of the trade secret theft.
Preliminary Injunction of Non Compete Agreements in Texas Litigation
An injunction is an order by a court forbidding one or more parties from doing something until the case has been litigated or otherwise resolved. An injunction can either be temporary/preliminary or permanent. The purpose of a preliminary injunction is to prevent substantial irreparable harm from occurring while the court decides the disputed issue. An employer must be prepared to plead and prove irreparable harm and not just possible or potential harm. However, some non-compete agreements may have a clause which states that the court may presume irreparable harm in the event of a breach of the non-compete agreement. Preliminary injunctions are time-sensitive and are heard by the court on an urgent basis. Any failure or delay in bringing to the court's attention the risk of irreparable/immediate harm may be fatal to an employer's request for a preliminary injunction. Our business litigators are experienced in helping our clients secure injunctions against current or former employees.
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Meet Our Team
John Wilson
Managing Partner
Jennifer Rynell
Partner
Leigh Whitaker
Partner
Kayla Holderman
Associate
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Wilson Legal Group P.C.
d/b/a Wilson Whitaker Rynell
(972) 248-8080 (Dallas) MAIN OFFICE
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Wilson Whitaker Rynell
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