Texas Court of Appeals Finds Noncompete Agreement Inapplicable to Former President’s Post-Termination Activities Due to the Inexact Language of the Noncompete Period

On October 27, 2016, the Fort Worth Court of Appeals affirmed a lower court’s order denying an application for temporary injunction seeking to enjoin Thomas Musgrave, the former president of Henry F. Coffeen III Management, Inc., d/b/a Coffeen Management Company (“CMC”), from competing with and soliciting its business. By doing so, the court emphasized the importance of carefully drafting noncompete and nonsolicitation provisions in employment agreements to ensure that an employee’s post-termination activities remain subject to the restrictive covenants.

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