Another Step Forward in the Enforcement of Noncompetes


The Texas Supreme Court in Frankfort Mann Stein & Lipp Advisors, Inc. v. Fielding has further clarified the circumstances in which noncompete contracts with at-will employees will be enforced that was first announced by the same court in Sheshunoff Management Services, L.P. v. Johnson.1 In Sheshunoff, the court announced that the focus should be shifted back from overly strict technical requirements to the reasonableness of the restrictions used in the contract. In addition to agreeing with decision in Sheshunoff, the court in Frankfort Mann also eliminated yet another technical argument against the enforcement of noncompete agreements. Although Texas law still adheres to certain special requirements for noncompete contracts, the enforcement of such agreements has become one step easier.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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