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Thursday, March 28, 2024

Declaratory Judgment Actions May Benefit Former Employees

Last updated Monday, May 3, 2010 01:00 ET

In some cases, an individual who entered into a non-compete agreement with a former employer may benefit by filing a declaratory judgment action.

05/03/2010 / SubmitMyPR /

Dallas non-compete lawyer Keith Clouse believes that, in some cases, an individual who entered into a non-compete agreement with a former employer may benefit by filing a declaratory judgment action and asking a judge to rule on the applicability of the non-compete agreement.

In a declaratory judgment action, a judge can establish the enforceability of a non-compete agreement and/or modify its restrictive terms prior to an actual dispute arising between the parties over a breach of the agreement.  If a judge rules in favor of the individual, the judge may void the non-compete agreement entirely or reform the agreement so that the restrictions on the individual’s ability to work are not so severe.  Additionally, a judge may order a former employer to pay a successful litigant’s attorneys’ fees.

Pursuing a declaratory judgment can be expensive and time-consuming; however, doing so may enable a person to gain clarity on a non-compete agreement and provide reassurance to future employers regarding its applicability and scope.   

To speak to Mr. Clouse or to another Dallas employment attorney about a non-compete agreement or a covenant not to compete contained in an employment agreement, please contact the Dallas employment lawyers at Clouse Dunn Khoshbin LLP at [email protected].