Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

Employer’s Breach of Agreement Containing Non-Compete Provision Results in Court’s Denial of Request to Enforce Non-Compete Provision

By Heath Coffman on July 17, 2020
Email this postTweet this postLike this postShare this post on LinkedIn
Insurance agent presentation and consultations with a lawyer or insurance agent.
(c) RedPixel / Adobe Stock

Courts will not enforce non-compete provisions in employment contracts when the employer breached the employment contract, too.  That is the lesson of Insgroup, Inc. v. Langley, No. 14-18-01071-CV, 2020 WL 1679401 (Tex. App.-Houston [14th Dist.] Apr. 7, 2020, no pet. h.).  In Insgroup, Insgroup’s employee Langley’s employment agreement with Insgroup contained a non-compete provision.  Under the agreement, Insgroup was also to treat Langley as an employee and, as such, provide him access to insurance benefits, withhold his taxes, and allow him to contribute a 401(k) plan.   The employment agreement automatically renewed in May 2018.

In August 2018, Insgroup provided Langley with a different agreement that treated him as an independent contractor.  Langley refused to sign but continued to work for Insgroup.  Insgroup, though, treated Langley as if he had signed the new agreement, and Insgroup did not withhold payroll taxes, deduct insurance premiums, or withhold 401(k) contributions.

Eventually, Langely resigned from Insgroup and went to work for a competitor.  Insgroup filed a request for injunctive relief, seeking to enforce the non-compete provision in the original agreement.  The trial court, however, refused to do so, holding that because “Insgroup breached the portion of the agreement favorable to Insgroup [by failing to provide Langley employee benefits], it has failed to show entitlement to injunction based on Langley’s breach of [the non-compete] portion of the same agreement.”

Employers need to remember this case when seeking an injunction to enforce a non-compete.

 

Photo of Heath Coffman Heath Coffman

Heath Coffman is a shareholder at Brackett & Ellis, P.C. in Fort Worth, Texas.  His practice includes commercial litigation, intellectual property, collections, professional malpractice defense, fiduciary litigation, and appeals.  You can contact him directly at hcoffman@belaw.com.

Read more about Heath CoffmanEmailHeath's Linkedin ProfileHeath's Twitter Profile
  • Posted in:
    Employment & Labor
  • Blog:
    The Fort Worth Business & Employment Law Reporter
  • Organization:
    Brackett & Ellis, P.C.
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo