Obtaining Injunctive Relief Based On A Texas Non-compete Agreement (Part VI)

We are blogging on “Non-competes, Trade Secrets, Fiduciary Duties, and the Inevitable Disclosure Doctrine.” Mark Oberti has prepared a detailed paper on all of these issues, which can be found here.

The trial court is required to set a bond when it grants a temporary injunction. TEX. R. CIV. P. 684. The applicant must post the bond, and it is payable to the adverse party if the temporary injunction is dissolved at trial. Id. The purpose of a bond is to provide protection to the enjoined party for any possible damages occurring as a result of the injunction. Bayoud v. Bayoud, 797 S.W.2d 304, 312 (Tex. App.–Dallas 1990, writ denied). The determination of the adequacy of the bond set by the trial court is to be made on a case-by-case basis based upon the record before the reviewing court. Maples v. Muscletech, Inc., 74 S.W.3d 429, 431 (Tex. App.–Amarillo 2002, no pet.); Stone, 53 S.W.3d at 696. The amount of a bond is within the trial court’s sound discretion and will not be disturbed on appeal absent an abuse of that discretion. Four Stars Food Mart, Inc. v. Tex. Alcoholic Beverage Comm’n, 923 S.W.2d 266, 269 (Tex. App.–Fort Worth 1996, no writ); Khaledi v. H.K. Global Trading, Ltd., 126 S.W.3d 273, 286 (Tex. App.–San Antonio 2003, no pet.); Maples, 74 S.W.3d at 431.

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