Recent Articles

What if employee is forced to sign noncompete agreement?

Robert Wood
January 27, 2012 15:01

I am frequently asked by employees about whether their covenants not to compete are enforceable, given that they had no choice but to sign them.  Often, an employer will say to a newly-hired employee, "You need to sign this covenant not to compete if you want to continue working...

Is Texas a Right to Work State?

Robert Wood
January 27, 2012 14:52

Not infrequently, an employee who has signed a covenant not to compete will confidently explain to me that, "Noncompete agreements are not enforceable in Texas, because Texas is a 'right to work' state."  Often, the employee's conviction has been confirmed by a family member or...

Do Texas Courts Blue Pencil Noncompete Agreements?

Robert Wood
January 27, 2012 14:43

Frequently in cases involving noncompete agreements, the issue arises as to whether an overly broad covenant not to compete will be held to be completely unenforceable, or whether it will be modified to make it enforceable.  In some states, if a noncompetition agreement is overly broad, the...

Economic Costs of Noncompete Agreements

Robert Wood
January 07, 2012 18:13

In his excellent concurrence in the Marsh USA case, Texas Supreme Court Justice Don Willett observed something that practitioners and trial court judges often forget or gloss over, namely, the adverse effect that unfair noncompete agreements can have on society at large.   Justice Willett...

Texas Covenants Not to Compete: Trial Courts Must Strike Proper Balance

Robert Wood
January 07, 2012 17:49

Justice Don Willett's concurrence in the Marsh USA contains a lot of economic theory and literary allusions that one typically does not see in a court opinion. For example, Justice Willett has this advice for trial court judges who handle disputes involving restrictive covenants in...

Free Market Capitalism in Texas and Marsh USA

Robert Wood
January 07, 2012 16:50

I re-read (again) the Marsh USA case this morning, including the concurring and dissenting opinions. The concurring opinion by Justice Willett is one of the most articulate and thoughtful opinions I have read in a long time. He tries to strike a balance between the pro-enforcement majority...

No Industry-Wide Texas Non-Compete Agreements

Robert Wood
December 13, 2011 18:32

Texas cases dealing with the enforceability of noncompete agreements have long held that “industry-wide” restrictions are overly broad. In a recent case from the Waco Court of Appeals, the court applied that rule to a concrete situation. The covenant not to compete applied to the...

Texas' Pro-Enforcement Trend Continues

Robert Wood
December 13, 2011 18:12

 The Marsh USA case was perhaps the most important non-compete case coming out of the Texas Supreme Court since the Light case in 1994. And that's saying a lot, given the Sheshunoff (2006) and Mann Frankfort (2009) opinions which made non-competes more enforceable in Texas. After Marsh USA,...

Reformation of Texas Noncompete Agreements

Robert Wood
August 29, 2011 13:28

Often in litigation involving noncompete agreeents, an employee bound by a noncompete agreement will contend that the scope of the restrictions contained in the agreement are overly broad. The employee may, for example, argue that an agreement prohibiting customer solicitation is too broad. Or,...

Marsh USA: Texas Noncompete Agreements More Enforceable

Robert Wood
August 01, 2011 12:00

The Marsh USA decision, which was handed down by the Texas Supreme Court earlier this month, sent shock waves through the community of lawyers who handle matters involving noncompete agreements.  The decision creates danger for employees bound by noncompete agreements here. ...