Texas And North Carolina Appellate Courts Repulse Efforts To Enforce Restrictive Covenants

In two unrelated cases decided earlier this month, employers failed in their attempts to enjoin former employees from competing. The Texas First District Court of Appeals vacated parts of the lower court’s injunction order, one part because it did not detail with sufficient specificity the conduct that was enjoined, and another part where the order was sufficiently specific but erroneously enjoined activities that were permissible. Lasser v. Amistco Separation Products, Inc., No. 01-13-00690-CV (Tex. Court of App., 1st Dist., Feb. 6, 2014). The North Carolina Court of Appeals held that a covenant’s array of prohibited activities was too broad to be enforceable. CopyPro, Inc. v. Musgrove, Case No. CCA13-297 (N.C. Court of App., Feb. 4, 2014).

To read this blog post click here