The Far-Reaching Claws of the Texas Non-Compete Statute

Originally published by Leiza Dolghih.

A recent case from a Texas Court of Appeals demonstrates that the Texas non-compete statute applies not only to the employment agreements or sale of business contracts, but to any contracts that contain provisions restraining trade.

In Wharton Physician Services, P.A. v. Signature Gulf Coast Hospital, L.P., the Corpus Christi Court of Appeals found that a liquidated damages clause in a recruiting contract was unenforceable under the Texas non-compete statute.

Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

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