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Implied Promise to Provide Confidential Information May Support Covenant Not to Compete, Texas Supreme Court Rules by T. J. Wray
Fulbright & Jaworski L.L.P. - Houston Office
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April 29, 2009
Where an employee promises in an employment agreement not to disclose confidential information, and the employee's duties are such that the employer will reasonably be required to provide confidential information to the employee, a promise to provide confidential information will be implied, the Texas Supreme Court found in Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding (No.07-0490, April 17, 2009). The court held that if the employer fulfills the implied promise, that act will suffice to make enforceable otherwise reasonable contractual restrictions on the employee's ability to compete with the employer after termination of the employment relationship.
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