Court Opinion

ID: 9497364
Source: CourtListenerOpinion
Date Created: 2023-08-05 16:49:31.851128+00
Date Added: 2024-06-11T17:58:09.106933
License: Public Domain

PICKERING, Circuit Judge,
concurring in part and dissenting in part:
I concur in all aspects of the majority opinion except the part dealing with the non-compete clause. In Texas, “[cjourts generally disfavor noncompete covenants because of the public policy against restraints of trade and the hardships resulting from interference with a person’s means of livelihood.” Zep Mfg. Co. v. Harthcock, 824 S.W.2d 654, 658 (Tex.App.Dallas 1992). I recognize that it is possible to have a valid non-compete clause; however, I would conclude that there is an ambiguity in this particular non-compete clause. A contract is ambiguous when its meaning is reasonably susceptible to more than one interpretation. Heritage Res. Inc. v. NationsBank, 939 S.W.2d 118, 121 (Tex.1996). In this case, the agreement states that “[t]his covenant shall apply to the geographical area that includes all U.S. states and countries which are included in the current customer base.” The phrase “which are included in the current customer base” could be read to apply only to the word “countries”, or it could be read to apply to “all U.S. states and countries.” Because the phrase is susceptible to more than one reasonable interpretation, the issue should be remanded to the district court for an appropriate determination. See Exxon Corp. v. West Texas Gathering Co., 868 S.W.2d 299, 302 (Tex.1993) (explaining that contract ambiguities are fact questions to be submitted to a jury).
For the foregoing reasons I respectfully dissent as to that part of the majority opinion dealing with the non compete clause.