Noncompete Enforceability Trend Continues

One of the statutory requirements for enforcing noncompetes in Texas without the need for reformation is that the agreement be reasonable in terms of time, scope, geographical limitation and that it not impose a greater restraint than is necessary to protect the business interest or goodwill. Historically, courts have frequently found that reasonable noncompete or nonsolicitation provisions should be limited to the customers with whom the employee worked or the area in which the employee worked. The Houston Court Of Appeals held last week, in EMS USA, Inc. v. Shary; No. 2009-29767, 2010 WL 724179 (Tex.App.- Houston) that "a prohibition against contacting existing customers does not necessarily equate to a prohibition against contacting customers with whom former employees had no dealings." Specifically, a restraint on client solicitation in a personal services contract limited to current customers is not necessarily unreasonable on its face. Therefore, the court refused