Mann Frankfort Covenant Enforceable: Texas Court

Law360, New York (April 22, 2009, 12:00 AM EDT) -- The highest-ranking court in Texas has held that a covenant not to compete in an at-will employment agreement may be enforceable when the employee expressly promises not to disclose confidential information, but the employer makes only an implied return promise to provide it.

The Supreme Court of Texas on Friday reversed a lower court’s decision that found the covenant by accounting firm Mann Frankfort Stein & Lipp Advisors Inc. could not be enforced against a former employee who opened up a rival accounting firm.

“If the...
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