Holeman, J. Eric v. the National Business Institute, Inc.

CourtCourt of Appeals of Texas
DecidedOctober 3, 2002
Docket14-01-00784-CV
StatusPublished

This text of Holeman, J. Eric v. the National Business Institute, Inc. (Holeman, J. Eric v. the National Business Institute, Inc.) 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.

Bluebook
Holeman, J. Eric v. the National Business Institute, Inc., (Tex. Ct. App. 2002).

Opinion

Affirmed and Opinion filed October 3, 2002

Affirmed and Opinion filed October 3, 2002.

In The

Fourteenth Court of Appeals

____________

NO. 14-01-00784-CV

J. ERIC HOLEMAN, Appellant

V.

THE NATIONAL BUSINESS INSTITUTE, INC., Appellee

On Appeal from the 152nd District Court

Harris County, Texas

Trial Court Cause No. 01-16299

O P I N I O N


In this case we address the enforceability of a forum selection clause in the context of a challenge to a covenant not to compete.  Appellant,  J. Eric Holeman, sued his former employer, The National Business Institute, Inc. (ANBI@), seeking a declaration that a covenant not to compete in a contract between them was unenforceable and alleging that NBI tortiously interfered with his subsequent employment.  NBI moved to dismiss Holeman=s suit based on the contract=s forum selection clause, which provided that claims arising out of the contract would be litigated in Georgia.  Holeman contends the trial court erred in granting NBI=s motion to dismiss because: (1) the enforcement of a forum selection clause in a contract containing a covenant not to compete violates Texas public policy; (2) there was no consideration for the contract; and (3) the interests of the witnesses and public favor a Texas forum.  We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

In March of 1999, Holeman answered an advertisement for employment with NBI, an Atlanta-based provider of employee recruiting and training services.  NBI hired Holeman to work in Houston, Texas.  In April, 1999, Holeman and NBI entered into a contract entitled, ARestrictive Covenant Agreement@ (Athe RCA@).  The RCA included a covenant not to compete and an agreement to maintain the confidentiality of trade secrets.  The RCA also contained the following choice of law and forum selection provision:

(e)  This Agreement is made under and shall be governed by the laws of the State of Georgia in all respects, including matters of construction, validity and performance.  In addition, claims arising out of this contract shall be litigated in courts located within the State of Georgia.  By execution of this Agreement, the parties hereby consent to the jurisdiction of any local, state or federal court located within the State of Georgia . . .

The RCA acknowledged Holeman to be an employee-at-will.  With the exception of eight or nine weeks of out-of-state travel and attendance at an ANBI Management and Training Meeting@ in Atlanta, Holeman performed his job duties in Texas.

In October of 2000, NBI terminated Holeman=s employment.  Holeman then went to work for Campbell Concrete & Materials, L.P., in Texas.  NBI, which considered Campbell a direct competitor, contacted Campbell and asserted that the RCA prevented Holeman from working for them.  As a result, Campbell suspended Holeman without pay for an unspecified number of weeks.


Thereafter, Holeman filed this suit in Harris County, Texas, alleging tortious interference and seeking a declaratory judgment that the covenant not to compete was unenforceable.  NBI moved to dismiss the lawsuit on the basis of the RCA=s forum selection clause.  The trial court granted NBI=s motion dismissing Holeman=s claims without prejudice.

                                                                 DISCUSSION

On appeal, Holeman argues: (1) the enforcement of a forum selection clause in a contract containing a covenant not to compete violates Texas public policy; (2) there was no consideration for the contract; and (3) the interests of the witnesses and public favor a Texas forum.  We address Holeman=s first and third issues before his second issue.   A trial court=s decision regarding the validity and enforcement of forum selection clauses is reviewed  under an abuse of discretion standard.  Barnett v. Network Solutions, Inc., 38 S.W.3d 200, 203 (Tex. App.CEastland 2001, pet. denied).

1.       Does the forum selection clause violate Texas public policy?


In what appears to be an issue of first impression in this state, Holeman argues that Texas public policy demands that a forum selection clause in a contract between an employer and an employee containing a covenant not to compete should be unenforceable as a matter of law in cases in which the enforceability of the covenant not to compete is at issue.  In support of his argument, Holeman relies primarily on DeSantis v. Wackenhut Corp. for the proposition that enforcement of covenants not to compete is a matter of fundamental public policy in Texas.  793 S.W.2d 670, 681 (Tex. 1990).  Holeman contends that requiring a Texas employee to litigate the enforceability of a covenant not to compete in a forum other than a Texas court will undermine Texas= public policy concerns as articulated in

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