Decision overview

On August 7, 2020, the Fifth Circuit addressed an issue presently undecided by the Texas Supreme Court; namely, whether reformation of an overbroad non-compete restriction is appropriate, and perhaps even required, at the preliminary injunction stage or must occur as a remedy after trial upon the merits.

In reversing and remanding the contrary lower court decision that declined to reform an overboard non-compete due to an inadequate record, the Fifth Circuit held that reformation of an overly broad covenant not to compete agreement was warranted at the preliminary injunction stage. Calhoun v. Jack Doheny Companies, Inc., No. 20-20068, — F.3d —, 2020 WL 4557641 (5th Cir. Aug. 7, 2020).
Continue Reading Fifth Circuit Holds that Reformation of Texas Non-Competes Is Authorized, and Perhaps Required, at Preliminary Injunction Stage

The United States Court of Appeals for the Fifth Circuit, reversing a trial court’s refusal to enter an order enjoining disclosure of confidential information, recently held that the lower court erred when it (a) ruled that the moving party must satisfy all six trade secret balancing test factors, (b) rejected a party’s request for an evidentiary hearing with respect
Continue Reading Federal Appellate Court Finds Motion To Enjoin Disclosure Of Confidential Information Should Not Be Denied Merely Because The Same Information Could Have Been Acquired Lawfully

The theft of trade secrets by foreign companies, especially those in China, from American companies is a hot topic among lawmakers and in the press. A recent opinion from the Fifth Circuit Court of Appeals dealt a blow to the ability of American companies to bring lawsuits in the United States for trade secret theft  in some circumstances, at least
Continue Reading If a Company in China Steals Your Trade Secrets, Do You Have to Litigate Your Lawsuit in China? Maybe…

A reporter for a business publication somehow obtained information contained in a privately held company’s confidential interim financial statements. As the reporter was about to disseminate that information in an email alert to the publication’s subscribers, the company sued, described the financials as trade secrets belonging to the company, and obtained from a Louisiana state court judge a TRO enjoining
Continue Reading “Prior Restraint” Doctrine May Preclude Enjoining A Newspaper From Publishing Misappropriated Trade Secrets