M.D. Non-Competes in Texas
As discussed here previously, Texas non-compete and non-solicitation agreements are alive and well and the Texas Supreme Court has made them easier to enforce. Doctors are frequently the targets of non-competes and they are legal in the state of Texas.
The Texas Legislature has gone out of its way to set forth provisions necessary to make a non-compete enforceable against a doctor in Section 15.50 of the Texas Business & Commerce Code. The highlights:
Patient Records/Care: The non-compete must: (1) not deny the physician access to a list of his/her patients upon departure; (2) provide the physician access to their patients’ medical records when authorized by the patient; and (3) the physician must not be prevented from providing treatment to an acutely ill patient.
Buy-Out Provision: The statute also requires that the non-compete provide for a buy-out of the non-compete at a reasonable price or as determined by a mutually agreed arbitrator or one chosen by the court.
In sum – read the statute to make sure your non-compete complies with the statute, don’t play games with patient records or care, and provide a buy-out provision.
It will be interesting to see how the Judge balances the equities on this case. Is the protective covenant enforceable under California law? (I’ll leave that to a California lawyer to determine.) Will the Court consider the fact Hurd has been paid a significant amount of money to sign these agreements? Most importantly, will the Court believe he will disclose HP trade secrets at Oracle? We will keep you posted. 
