Texas Supreme Court Provides New Focus For Noncompete Contract Enforcement

Law360, New York (November 6, 2006, 12:00 AM EST) -- All employers have good reason to welcome the Texas Supreme Court's most recent ruling on noncompete contracts. Much of the confusion that made noncompete contract enforcement in Texas difficult to predict has been eliminated. In Alex Sheshunoff Management Services, L.P. v. Johnson, the Texas Supreme Court shifts the focus for noncompete contract analysis away from technical timing and contract formation issues that dominated recent decisions, and back to whether the contract is reasonable and necessary for the protection of a legitimate business interest.

Lower courts were...
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