Primary Health Physicians v. Sarver, Wallace

390 S.W.3d 662, 2012 WL 6057580, 2012 Tex. App. LEXIS 10101
CourtCourt of Appeals of Texas
DecidedDecember 6, 2012
Docket05-12-00351-CV
StatusPublished
Cited by8 cases

This text of 390 S.W.3d 662 (Primary Health Physicians v. Sarver, Wallace) 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
Primary Health Physicians v. Sarver, Wallace, 390 S.W.3d 662, 2012 WL 6057580, 2012 Tex. App. LEXIS 10101 (Tex. Ct. App. 2012).

Opinion

OPINION

Opinion By

Justice MORRIS.

In this accelerated interlocutory appeal, appellant Primary Health Physicians, P.A. challenges the trial court’s order denying a temporary injunction against Wallace Sar-ver, D.O., based on a covenant not to compete in the parties’ employment agree *664 ment. Among other things, the trial court concluded PHP would not suffer irreparable injury pending trial on the merits. In two issues, PHP asserts the trial court abused its discretion because (1) PHP did not need to show irreparable injury once it established Sarver violated a covenant not to compete that was enforceable under the Covenants Not to Compete Act, and (2) the evidence at the hearing proved irreparable injury. We affirm the trial court’s order.

Sarver was hired by PHP as a doctor for its CareNow clinic in Frisco. Sarver signed an employment agreement providing he would not engage in any business that was competitive with PHP within the ten-mile radius around the Frisco Care-Now facility for a period of two years following the termination of the employment agreement. Sarver resigned from his position at the Frisco CareNow clinic in December 2011. On January 9, 2012, Sarver began working for FamilyWise, in Allen, Texas, where he assumed another physician’s practice and full load of patients. It is undisputed that FamilyWise was within the ten-mile radius of the Frisco CareNow Clinic. Sarver then sued PHP seeking injunctive and declaratory relief to prevent PHP from enforcing the noncompete provision with respect to his employment with FamilyWise. PHP answered and filed a counterclaim seeking, among other things, a temporary injunction enjoining Sarver from working at FamilyWise. After a hearing, the trial court denied PHP’s request for a temporary injunction. This appeal followed.

Our review of the trial court’s order is limited to whether the trial court abused its discretion in refusing to grant temporary relief. See Butnaru v. Ford Motor Co., 84 S.W.3d 198, 204 (Tex.2002). A trial court abuses its discretion when it misapplies the law to established facts or when the evidence does not reasonably support the trial court’s factual determinations. See id. at 211; Rugen v. Interactive Bus. Sys., Inc., 864 S.W.2d 548, 551 (Tex.App.-Dallas 1993, no writ).

A temporary injunction applicant must plead and prove the following three elements: (1) a cause of action against the defendant; (2) a probable right to the relief sought; and (3) a probable, imminent, and irreparable injury in the interim. See Tom James of Dallas, Inc. v. Cobb, 109 S.W.3d 877, 882 (Tex.App.-Dallas 2003, no pet.). A temporary injunction is an extraordinary remedy and does not issue as a matter of right. Butnaru, 84 S.W.3d at 211.

The enforceability of a covenant not to compete is governed by the Covenants Not to Compete Act. See Tex. Bus. & Com.Code Ann. § 15.50 et seq. (West 2011). The Act contains a provision stating its procedures and remedies to enforce a noncompete agreement are exclusive and preempt any other criteria for enforceability under common law or otherwise. Id. at § 15.52.

In its first issue, PHP contends it was not required to establish irreparable harm for a temporary injunction because it established the covenant not to compete was enforceable under the Act and Sarver was violating the covenant by working at FamilyWise. PHP cites three cases from this Court to support its position that, under the Act, an applicant need not establish irreparable harm to obtain a temporary injunction to enforce a covenant not to compete. See McNeilus Cos. Inc. v. Sams, 971 S.W.2d 507 (Tex.App.-Dallas 1997, no pet.); Hilb, Rogal & Hamilton Co. of Tex. v. Wurzman, 861 S.W.2d 30 (Tex.App.-Dallas 1993, no writ); Recon Exploration, Inc. v. Hodges, 798 S.W.2d 848 (Tex.App.-Dallas 1990, no writ). Although the cases cited by PHP do contain *665 dicta suggesting the Act’s enforceability requirements supercede those under the common law for injunctive relief, we have never held the Act eliminates the requirement that an applicant show irreparable harm to obtain a temporary injunction based on a covenant not to compete.

Several sister courts have determined the Act does not preempt the requirements for obtaining temporary injunctive relief. See EMSL Analytical, Inc. v. Younker, 154 S.W.3d 693, 695 (Tex.App.Houston [14th Dist.] 2004, no pet.); Cardinal Health Staffing Network, Inc. v. Bowen, 106 S.W.3d 230, 239-40 (Tex.App.-Houston [1st Dist.] 2003, no pet.); NMTC Corp. v. Conarroe, 99 S.W.3d 865, 867-68 (Tex.App.-Beaumont 2003, no pet.). We agree with the reasoning of these cases that the Act governs only final remedies and does not supplant the common law requirements for a pretrial temporary injunction. In fact, when an appeal involves an order on a temporary injunction application based on a covenant not to compete, the ultimate question of whether the covenant is enforceable under section 15.50 of the business and commerce code is not an issue for appellate review. See Tom James of Dallas, 109 S.W.3d at 882-83. The trial court may therefore consider the parties’ respective conveniences and hardships, weighing the probable harm to the plaintiff if a temporary injunction is erroneously denied with the probable harm to the defendant if a temporary injunction is erroneously granted. See NMTC Corp. v. Conarroe, 99 S.W.3d 865, 868 (Tex.App-Beaumont 2003, no pet.).

Having concluded that PHP was required to show irreparable injury to be entitled to a temporary injunction, we next address whether the trial court abused its discretion in determining that PHP failed to make the requisite showing of irreparable injury. The hearing on the temporary injunction took place on February 17, 2012, about five weeks after Sarver began working at FamilyWise. PHP presented evidence that while working at CareNow, Sarver developed a devoted patient following and after he left, patients asked to see Sarver. No evidence shows, however, that any of these patients stopped going to the Frisco CareNow and were instead now going to FamilyWise to see Sarver.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Robert L. Malcom v. Cobra Acquisitions, LLC
Court of Appeals of Texas, 2020
Argo Group US, Inc. v. Levinson
468 S.W.3d 698 (Court of Appeals of Texas, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
390 S.W.3d 662, 2012 WL 6057580, 2012 Tex. App. LEXIS 10101, Counsel Stack Legal Research, https://law.counselstack.com/opinion/primary-health-physicians-v-sarver-wallace-texapp-2012.