preliminary injunction stage

The enforceability of employment non-competes in Texas is governed by the Texas Covenants Not to Compete Act.  If a non-compete covenant is found to be overbroad, “the court shall reform the covenant to the extent necessary to cause” the covenant to be reasonable.  Tex. Bus. & Com. Code § 15.51(c).  The Texas Supreme Court has yet to address whether reformation of an overbroad non-compete restriction is appropriate at the temporary injunction stage or whether reformation is only a final remedy after a trial on the merits.  In a recent published opinion, the Fifth Circuit squarely examined this issue.  Calhoun v. Jack Doheny Companies, Inc., No. 20-20068, — F.3d —, 2020 U.S. App. LEXIS 25001 (5th Cir. Aug. 7, 2020).
Continue Reading Fifth Circuit says Texas trial court should have considered reforming an overbroad non-compete at the preliminary injunction stage