Forcing A Business Divorce–It Is Possible
A client of mine was shut out of a company in which it owned 50%. The other partners engaged in self-dealing and withdrew over $80,000 from the company’s accounts without my client’s consent or permission. A deadlock ensued between partners each owning 50-50. In a classic arrangement, my client bankrolled the company, and the other […]
Mahendru, PC Shares Risk With Clients
Mahendru, PC takes risks with its clients. That is the way to win. On Monday, June 18, 2012, a potential client walked in the door describing an emergency situation in partnership dispute. This client was locked out of the business by another partner. Everything was upside down for this partner. Cell phones were turned off; […]
What To Do With Competing Lawsuits in Australia and Houston
I had the opportunity to make oral arguments before the Thirteenth Court of Appeals on April 20, 2012. The case involved a dismissal by the lower court of the entire case based on a motion a filed on behalf of my clients. The Houston trial court dismissed the case on the basis of a common […]
Texas Makes It Easier to Enforce Non-Competes
Texas courts have viewed non-competes with a healthy amount of skepticism in the past. After all, people have a right to work and make a living. Reasonable restrictions as to time and place are hallmarks of enforceable non-competes. Plus, the non-compete needs to be ancillary to an otherwise enforceable agreement. Most of the time, Texas […]
Highly Compensated Former Employee Competes–But Not For Long
Mahendru, PC was successful in getting a temporary restraining order on March 22, 2012 for G.A.S. Unlimited, Inc. For over forty years, G.A.S. has provided qualified and highly skilled project personnel across various industries, including engineering, procurement, and construction; chemical; refining; exploration; pipeline; and power. In order to fill such positions, G.A.S. maintains a large […]
Classic Shareholder Oppression
Being a shareholder in a corporation, a partner in a limited partnership, or a member in a limited liability company, opens up opportunities for the shareholder, partner, or member to be oppressed. The minority owners can be subject to what Texas courts refer to as shareholder oppression. Shareholder oppression is not particularly well defined, though, […]
A Non-Compete Lesson – Intended Or Not
I recently settled a temporary injunction case in Houston where the employer sought to shut down a former employee from continuing his competing business, and the company he started was my client. The employee had a two year non-compete agreement. That part was not in dispute by the employee, and he complied with his obligations […]
Texas Trade Secrets Primer
A trade secret is any formula, pattern, device or compilation of information which is used in one’s business and presents an opportunity to obtain an advantage over competitors who do not know or use it. To determine whether a trade secret exists, Texas courts apply a six-factor test, examining: The extent to which the information […]
Difficulty in Dealing with Trade Secrets
Employers and employees easily get into disputes about trade secrets when a high level employee departs the company. The employer is suspicious of the employee’s future plans, and the former employee is worried that the employer is planning to stop the employee from working in the future. Fundamental to trade secret law is that it must be secret. […]
The Employment Trap of Arbitration – Don’t Let It Scare You
Employers increasingly rely on arbitration to prevent their employees from obtaining jury trials on their employment-related claims. In Texas, employers may require their employees to arbitrate their employment-related claims even in the absence of a signed arbitration agreement. Generally, most Texas employees have “at-will employment,” meaning that there is no written employment contract that governs […]
