Legal Question in Business Law in Texas

Texas Non-compete (over restrictive)

Hi, My Fiancee recently left her job with one Technical Recruiting firm and started working with another Technical Recruiting firm. After working at her new job, she received a demand letter from her former employer's lawyer. The letter was stating that she had breached a non-compete contract that she had signed. Ok, here is some history. After working at her first job for about 7 months, her boss decided to have all the employee's sign contracts. It is obvious that the non-compete part of the contract is very over-restrictive. The firm she signed the contract with places contractors in Computer related jobs. In the contract, it said that for 2 years after leaving, she could not work for anywhere that recruited in the following fields: Accounting, health care, banking, engineering, financial, data processing, computer, sales/marketing, chemical coatings, human resources and pharmaceutical personnel.

In cases like this, do the courts in Texas ever amend the contract, or so they just toss the whole thing out?


Asked on 4/22/98, 1:58 pm

2 Answers from Attorneys

Jeffrey Schlitt Jeffrey D. Schlitt, Attorney at Law

Texas Courts will reform Covenants where equitable

Covenants not to compete are enforceable in Texas; provided certain conditions are met. These conditions are quite numerous and not easily the subject of a speedy reply. Failure to meet any one of them can result in an unenforceable contract.That being said, Texas courts are empowered to reform covenants not to compete where the geographical area; the time limitation; or the subject matter is beyond the scope of equity. Once reformed, the contract can be enforced as reformed.I know the above is general nature; but this is a highly complex area of law and requires knowledge of the specific facts in order to provide specific guidance. The above does, however, answer the questions you posed.

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Answered on 5/12/98, 2:51 pm
Basil Landon Hoyl, Jr. Law Office of Basil Hoyl - Safeco Land Title

non-compete covenant

Covenants not to compete may be enforced, modified or not enforced by courts, depending on the circumstances. It would be important to see the contract signed and what evidence you have which supports the scope of the business left and the business joined. Texas has a specific statute with regard to covenants of this type.For statutes in general, try: http://www.capitol.state.tx.us/statutes/statutes.htmlFor something more specific, try chapter 15 of the Texas Business and Commerce Code.

If you are in the Fort Worth - Dallas area and need a lawyer with regard to this matter, please let me know.

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Answered on 5/13/98, 12:27 pm


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