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ARTICLE · 07 OCTOBER 2013

He Has The Power ….

On July 3, 2013, the Dallas Court of Appeals held that an arbitrator has the power to extend a non-compete agreement by one year.

United StatesEmployment and HR

On July 3, 2013, the Dallas Court of Appeals held that an arbitrator has the power to extend a non-compete agreement by one year. The non-compete at issue prohibited two insurance executives from planning a business that competed with their former employer. The two executives breached the non-compete and the former employer sued. The litigation was resolved with a settlement agreement preventing the two executives from "engaging in competition" from May 4, 2011 through May 4, 2012. The definition of "competition," in part, included planning to conduct a competing insurance business. The settlement agreement was governed by an arbitration clause if any dispute arose, but the clause did not detail what the arbitrator could award for violations of the non-compete.

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