In today’s competitive business environment, it pays to take every possible precaution when it comes to protecting intellectual property, client lists, trade secrets, and the like. One way to do this is with a restrictive covenant such as a non-compete agreement, non-disclosure agreement, or non-solicitation agreement.
However, it is important that such agreements be properly drafted (without being overreaching) and executed in an appropriate fashion, or else a reviewing court may side with the employee if the agreement is breached and litigation ensues.
Facts of the Case
In a case recently considered by the Texas Court of Appeals, the plaintiff was a company that fabricates and services equipment used in the oil and gas industry. It filed suit against the defendants, a competitor and a former employee, seeking injunctive relief and monetary damages because the employee had gone to work for the competitor and was allegedly violating certain non-competition, non-disclosure, and non-solicitation agreements. Continue reading