Neurodiagnostic Tex, L.L.C. v. Pierce

506 S.W.3d 153, 41 I.E.R. Cas. (BNA) 1381, 2016 Tex. App. LEXIS 11754, 2016 WL 6426830
CourtCourt of Appeals of Texas
DecidedOctober 31, 2016
DocketNO. 12-14-00254-CV
StatusPublished
Cited by24 cases

This text of 506 S.W.3d 153 (Neurodiagnostic Tex, L.L.C. v. Pierce) 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
Neurodiagnostic Tex, L.L.C. v. Pierce, 506 S.W.3d 153, 41 I.E.R. Cas. (BNA) 1381, 2016 Tex. App. LEXIS 11754, 2016 WL 6426830 (Tex. Ct. App. 2016).

Opinion

[159]*159 OPINION

JAMES T. WORTHEN, Chief Justice

Neurodiagnostic Tex, L.L.C. and Robert “Josh” Pierce each filed motions for rehearing, which are overruled. Our opinion dated July 12, 2016, is withdrawn, and the following opinion is substituted in its place.

Neurodiagnostic Tex, L.L.C. (NeuroTex) appeals the trial court’s orders granting summary judgment in favor of Appellees Robert “Josh” Pierce and Synergy IOM, L.L.C., as well as its orders pertaining to NeuroTex’s other pretrial motions relating to summary judgment proceedings. Neuro-Tex raises six issues on appeal. We affirm in part and reverse and remand in part.

Background

On December 13, 2005, NeuroTex and Pierce entered into an employment agreement.1 Pursuant to the agreement, Neuro-Tex agreed to employ Pierce primarily to provide intraoperative testing/monitoring (IOM) services on its behalf.2 The agreement set forth that Pierce initially would be employed for a ninety day duration and for thirty day periods thereafter. The agreement further permitted either party to terminate it by giving fourteen days written notice of an intention not to renew employment for the following calendar month. However, the agreement also described circumstances under which Neuro-Tex could terminate Pierce’s employment for cause. Moreover, the agreement contained a noncompetition agreement, which stated, in pertinent part, as follows:

VII. NON-COMPETITION AGREEMENT
Employee acknowledges that Company is agreeing to spend financial resources to train Employee pursuant to the Training Agreement below and share proprietary and confidential information with Employee so that Employee will be capable of satisfying Employee’s duties under this Agreement. Further, Company agrees to provide Employee with a-fourteen (14) day notice of termination of Employment, unless Employee is terminated for cause as' described earlier in this Agreement ....
1. Non-Disclosure Agreement
Employee and Company agree that, in the course of Employee’s employment with Company, Employee will acquire confidential customer and patient related information that could damage Company if this information were to come into the possession of Company’s competitors. For this reason, and for the protection of the Company’s patients, Employee will not, except as authorized in writing by Company, during or at any time after the expiration or termination of this Agreement, directly or indirectly, use, communicate, divulge, furnish to, or conyey to any other person, firm, or corporation, any of the trade secrets, financial information, project plans, or other proprietary or confidential information of Company or any of Company’s subsidiaries, partners, associates, or affiliates, obtained by Employee during the term of this Agreement. The information Employee agrees not to disclose [160]*160includes, but is not limited to, the following:
a. Identity and information regarding any past, present, or prospective customer or patient of Company;
b. Any financial information of any of Company’s business;
c. Any list of Company’s employees, whether permanent or temporary; and
d. Any results of any studies or investigations by Company or Employee conducted during .the term of this Agreement.
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4. Covenant Not to Compete
Employee agrees that the covenants and restrictions set forth below are intended only as a reasonable protection of the Company. For a period of five (5) years after the expiration or termination of this Agreement, Employee shall not, either directly or indirectly, become engaged in any business or activity in the Texas’ counties surrounding the Dallas/Fort Worth Metroplex, which are Collin, Dallas, Denton, Ellis, Hood, Johnson, Kaufman, Parker, Rockwall, Tarrant, and Wise counties located in the State of Texas, which directly or indirectly competes with the Company’s business owned or operated by Company or any of Company’s subsidiaries, partners, associates, or affiliates, unless approved by Company in writing before Employee’s acceptance of such employment or opportunity.
Employee shall not have any contact with any of Company’s current customers or contacts or solicit potential customers if such potential customers are or were identified through leads developed during the course of Employee’s rendering of services and duties under this Agreement.
Employee shall not, either during the term of this Agreement or for a period of two (2) years thereafter, divert or attempt to divert any existing or future business of Company. Employee shall not, either during the term of this Agreement or for a period of two (2) years thereafter, either directly or indirectly, for himself or any third party, solicit, induce, recruit, or cause another person in the employ of any business owned or operated by Company to terminate his/her employment for the purpose of joining, associating, or becoming employed with any business which is either in competition with Company or that conducts or performs intraoperative testing/monitoring (IOM) services.
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7. Representations of Employee
Employee represents that Employee’s experience and capabilities are such that the restrictions contained herein will not prevent Employee from obtaining employment or otherwise earning a living at the same general economic benefit as reasonably required by Employee and that Employee has, prior to the execution of this Agreement, reviewed this Agreement thoroughly with Employee’s legal counsel, if needed or desired.
VIII. TRAINING AGREEMENT
As part of this Agreement, Company and Employee agree that Company is prepared to expend large sums of money and invest considerable amounts of time to train, educate, and qualify Employee to (1) either become board eligible in preparation of the evoked potential and intraoperative monitoring boards or to become board eligible to provide evoked potential testing/intraoperative monitoring (IOM) services, (2) to become registered as an REPT, and (3) to become registered as CNIM. Employee acknowledges that he has already become [161]*161boarded in EEG. Employee and Company agree that the cost of the training to be provided to Employee is Five Thousand and NO/100 Dollars ($5,000.00). In consideration of the covenants and agreements contained herein, Employee and Company agree to the following:
1. Company’s Advancement of Training
Company will advance the cost of training to train, educate, and qualify Employee to (1) either become board eligible in preparation of the evoked potential and intraoperative monitoring boards or to become board eligible to provide evoked potential testing/intraop-erative monitoring (IOM) services, (2) to become registered as an REPT, and (3) to become registered as a CNIM, all of which shall hereinafter be referred to as “Training.”
2. Service Period

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Bluebook (online)
506 S.W.3d 153, 41 I.E.R. Cas. (BNA) 1381, 2016 Tex. App. LEXIS 11754, 2016 WL 6426830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neurodiagnostic-tex-llc-v-pierce-texapp-2016.