TX STATECourt of Appeals of Texas
2008

Goodin v. Jolliff

257 S.W.3d 341Court of Appeals of Texas • Decided 2008Modified

HOLDING

Jeff Goodin signed a non-competition agreement when he became a subcontractor for a directional drilling company. The Texas Court of Appeals ruled that the non-compete was unenforceable because it had no geographic limits. The court also threw out a $5,000 attorney's fees award because the company never formally presented the claim. This case matters to subcontractors because it shows that overly broad non-compete agreements may not hold up in court.

KEY FINDINGS

Broad Indemnification

Non-compete agreements without geographic boundaries are unenforceable in Texas—make sure any non-compete you sign specifies a limited area and time period

Non Compete

If a company sues you for breach and wins attorney's fees, they must formally present that claim to you first—vague or informal notice won't count

Property Agreement

Broad indemnification clauses requiring you to cover all losses may be challenged if they're too one-sided; review indemnity language carefully before signing

FULL COURT OPINION