1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

A Primer on Preparing for Non-Compete Litigation: Part 2 in a Series

Second Step:

Now that you have gathered all the documentary evidence, did you find an employment contract which contains a non-compete covenant? If so, your attorney will need to analyze it to determine if it has the requisite hallmarks of an enforceable non-compete agreement under Texas law. This will involve his determining whether adequate legal consideration passed between the former employee and your company at the time the contract was signed. The consideration can sometimes be found in the employment contract itself, but often it comes to light by reviewing some of the other documents on your evidentiary list. For example, if stock options were given to the employee at the time the employment contract was signed, that will probably be sufficient to support the non-compete covenant. Such consideration is strengthened, though, if the employment agreement specifically references the stock option grant and why it was given.
If there was a non-solicitation agreement–different from a non-compete covenant–it will normally appear in an employment agreement, but may also be a separate instrument. Your lawyer will be interested to see this, and to hear about the circumstances of its signing.

The bottom line at this stage, is for you to get the material to your business litigation attorney as quickly as you can, so that he can evaluate the strength of the evidence, and any weaknesses that may bear upon the cost of meeting your burden of proof.

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297