American Surgical Assistants, Inc., D/B/A American Surgical Professionals v. George Villareal

CourtCourt of Appeals of Texas
DecidedOctober 8, 2020
Docket13-19-00221-CV
StatusPublished

This text of American Surgical Assistants, Inc., D/B/A American Surgical Professionals v. George Villareal (American Surgical Assistants, Inc., D/B/A American Surgical Professionals v. George Villareal) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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American Surgical Assistants, Inc., D/B/A American Surgical Professionals v. George Villareal, (Tex. Ct. App. 2020).

Opinion

NUMBER 13-19-00221-CV

COURT OF APPEALS

THIRTEENTH DISTRICT OF TEXAS

CORPUS CHRISTI – EDINBURG

AMERICAN SURGICAL ASSISTANTS, INC., D/B/A AMERICAN SURGICAL PROFESSIONALS Appellant,

v.

GEORGE VILLAREAL, Appellee.

On appeal from the 117th District Court of Nueces County, Texas.

MEMORANDUM OPINION Before Chief Justice Contreras and Justices Longoria and Perkes Memorandum Opinion by Justice Longoria

Appellant American Surgical Assistants, Inc. (American) perfected an appeal from

a take-nothing judgment rendered against it and in favor of appellee George Villareal.

American filed suit under the Covenants Not to Compete Act (the Act) for reformation and injunctive relief to enforce noncompete covenants against Villareal. See TEX. BUS. & COM.

CODE ANN. §§ 15.50–.52. The trial court granted a temporary restraining order against

Villareal, then subsequently dissolved the temporary restraining order and denied

American’s application for a temporary injunction. After a bench trial on the merits, the

court rendered final judgment on April 26, 2019, denying all relief sought by American

and awarding attorney’s fees to Villareal. By seven issues, American generally contends

that the trial court erred by not reforming the covenants to render them enforceable

(issues 1 and 4), concluding that the noncompete covenants were not enforceable (issues

2 and 3), and awarding attorney’s fees (issues 5 through 7). We affirm.

I. BACKGROUND

American provides surgical assistants to surgical facilities and physicians. Villareal

had worked as a surgical assistant in the military and after his service, he worked to obtain

his certification as a surgical assistant through the National Surgical Assistant

Association. Villareal then began working for American as a surgical assistant in

November 2009. American claims that during his employment at American, Villareal

received confidential information pertaining to American’s operations, performance,

contracts with facilities, objectives and initiatives for improving or increasing its business,

and financial condition. American also claims that Villareal’s access to American’s clients

and the patients of those clients necessarily includes access to confidential information.

Upon his employment with American, Villareal signed an employment agreement which

also contained a confidentiality agreement, both of which included covenants not to

compete, non-solicitation agreements, and confidentiality provisions. The employment

2 agreement contained the following relevant language in a “Confidentiality and Non-

Competition” section:

Assistants shall not directly or indirectly offer his/her services as described in the attached job description or engage in doing business within an extended radius of Five Miles from the present address of [American] at 10039 Bissonnet #250, Houston, Texas 77036 and/or the address of any of its client institutions. This covenant shall remain in force for the duration of this Agreement and for a period of Two Years from date of termination of Agreement.

The confidentiality agreement, in part, stated:

3. Non-Competition and Non-Solicitation The Employee/Independent Contractor/PRN acknowledges that he or she will acquire considerable knowledge about, and expertise in, certain areas of the Employer/ Contractor’s business and that he or she will have knowledge of, and contact with, customers and suppliers of the Employer/Contractor and its Affiliates (as hereafter defined). The Employee/ Independent Contractor/ PRN further acknowledges that he or she may well be able to utilize such knowledge and expertise, following termination of his or her service with the Employer/Contractor, to the serious detriment of the Employer/Contractor in the event that the Employee/Independent Contractor/PRN should solicit business from customers of the Employer/Contractor or its affiliates. Accordingly, the Employee/Independent Contractor/PRN agrees that:

(a) Non-Competition. During his or her employment and for a period of two (2) years after termination of his or her employment, the Employee/Independent Contractor/PRN shall not in any way offer his or her services to any of [American’s] client institutions or client surgeons.

(b) Non-Solicitation of Customers. He or she will not, for a period of two (2) years after termination of his or her employment, directly or indirectly, approach any customer or business partner of the Employer/Contractor or its Affiliates for the purpose of providing services substantially similar to the services provided by the Employer/Contractor or its affiliates; and

(c) Non-Solicitation of Employee/Independent Contractor/ PRNs. He or she will not for a period of two (2) years after termination of his or her employment, directly or indirectly, approach, solicit, entice or attempt to approach, solicit or entice any of the other Employee/Independent Contractor/

3 PRNs of the Employer/Contractor or its Affiliates to leave the employment of the Employer/Contractor.

The employment agreement began on November 30, 2009, and was “for an initial period

of one year unless either party notifies the other of his/her intent to terminate the

Agreement, in writing, with a fifteen days advance notice.” American and Villareal

renewed the agreement eight times before Villareal resigned in October 2018. Villareal

then began working for Universal Surgical Assistants, Inc. (Universal). American, alleging

that Villareal was in violation of his signed agreements with American, filed suit under the

Act for reformation and injunctive relief to enforce the agreements between the parties.

American sought a temporary restraining order, temporary injunction, reformation of the

covenants, and a permanent injunction to enforce the covenants as reformed. The

temporary restraining order was granted, and subsequently expired under its own terms.

The case was then tried to the bench and the trial court rendered final judgment denying

American’s requested relief and awarding attorney’s fees to Villareal. This appeal

followed.

II. ENFORCEABILITY

The Act governs the enforceability of noncompetition agreements. See TEX. BUS.

& COM. CODE ANN. §§ 15.50–.52. The enforceability of a covenant not to compete is a

question of law. Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, 289 S.W.3d 844,

848 (Tex. 2009). We review the trial court’s determinations of questions of law on a de

novo basis. Barber v. Colo. Indep. Sch. Dist., 901 S.W.2d 447, 450 (Tex. 1995).

Section 15.50 provides in relevant part:

Notwithstanding Section 15.05 of this code, and subject to any applicable provision of Subsection (b), a covenant not to compete is enforceable if it is ancillary to or part of an otherwise enforceable agreement at the time the

4 agreement is made to the extent that it contains limitations as to time, geographical area, and scope of activity to be restrained that are reasonable and do not impose a greater restraint than is necessary to protect the goodwill or other business interest of the promisee.

TEX. BUS. & COM. CODE ANN. § 15.50(a). The requirement of an “otherwise enforceable

agreement” is satisfied when the covenant is part of an agreement which contains

“mutual, nonillusory promises.” Marsh USA, Inc. v.

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