Texas Supreme Court Rules Non-Compete Enforceable
In Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, the Texas Supreme Court reversed the Houston Court of Appeals holding that an accountant’s non-compete agreement was enforceable. The Court stated in part:
We hold that if the nature of the employment for which the employee is hired will reasonably require the employer to provide confidential information to the employee for the employee to accomplish the contemplated job duties, then the employer impliedly promises to provide confidential information and the covenant is enforceable so long as the other requirements of the Covenant Not to Compete Act are satisfied.
In other words, the employer does not have to state in the non-compete agreement that it is going to provide confidential information, that can be implied based on the context and circumstances surrounding the job.
Justice Hecht concurred in the opinion.