Restrictive covenant disputes are fast-paced, often complex, and can put critical trade secrets or business reputations at risk. Whether considering the acquisition of a company, hiring a new employee, or taking steps to protect confidential information, Vinson & Elkins has lawyers with the required experience. We have advised clients in a broad spectrum of industries regarding the drafting, negotiation, and enforceability of non-compete, non-solicitation, and other restrictive covenants.
V&E's familiarity with the nuances of restrictive covenant law can assist clients in the courtroom. When an employer’s confidential information is threatened, a motion to enforce a non-competition agreement, or otherwise protect proprietary materials can become a “bet-the-company” case. We act swiftly and thoroughly to protect our clients, obtaining many injunctions, restraining orders, and settlement agreements that prevent employees or former employees from breaching their non-competition and non-solicitation obligations.
Similarly, we are experienced in identifying and defeating business rivals' attempts to gain leverage through spurious threats of litigation over its former employees’ restrictive covenants. We help clients to retain newly hired employees. Whether you need to evaluate your options or take immediate steps to protect your most important interests, V&E is ready to help. Our experience and knowledge assists you in what may be one of the biggest challenges that your company will face.
Representative Matters- Obtained a preliminary injunction, following a three-day trial, which prevented a former Chief Executive Officer from establishing a competing business with his former company, which our client had just bought. Following entry of the injunction, negotiated a favorable settlement which included repayment of the CEO of a substantial portion of the consideration that had been paid for his former company.
- Obtained a temporary restraining order against two former employees that restricted those employees from using our client’s confidential information in the establishment of a competing business. After obtaining the restraining order, negotiated a settlement which extended its terms and required the employees to make restitution of six months’ pay.
- Obtained judgment against a former employee of our client who breached non-competition obligations by establishing a rival marketing business; judgment included court order requiring disgorgement of proceeds obtained in violation of non-competition agreement.
- Defeated motion for preliminary injunction on behalf of a software company in a case that alleged tortuous interference with advantageous business relationships and sought to prevent two of our client’s senior employees from engaging in sales efforts that allegedly violated their non-competition obligations.
- Obtained federal bankruptcy court judgment that non-competition agreement was not an executory agreement that could be discharged (and thus disregarded) by a former employee who had entered bankruptcy proceedings.
- Obtained judicial enforcement of non-competition and non-solicitation agreements that former executives had entered with our software industry client.
- Represented an international credit card and banking company in the drafting and enforcement of its employees’ non-competition and non-solicitation covenants throughout the United States, Europe, and Asia