As a contractor or employer, you can also take legal action against workers who violate confidentiality agreements. Chron.com indicates that you may eventually receive financial compensation for damages suffered by your company as a result of the breach of the confidentiality agreement. For example, an employee shares your trade secrets with a competitor. As a result, you lose your revenue or market share. You can bring a civil action to claim punitive damages from the worker. Many wars have been waged in Texas courts over the applicability of non-compete rules. But relatively few people have been held on the applicability of confidentiality agreements. There are many reasons for this, including the fact that Texas courts have routinely held that, unlike non-competition rules, confidentiality agreements do not restrict trade; That is why they are much more enforceable. The anti-SLAAP Texas Citizens Participation Act (TCPA) can apply to a large number of commercial disputes, including claims for misappropriation of trade secrets and breach of confidentiality agreements (NDAs). Where the TCPA is invoked in a case and proves to be applicable, the applicant must respond with clear and specific evidence concerning the prima facie evidence of his pleas. Recently, the Texas Supreme Court considered the evidence that would satisfy the plaintiff`s burden to establish causation and damages. Read More Texas Supreme Court is reviewing how courts have set up confidentiality agreements to prove damages caused by responding to a TCPA request. As one Texas court put it: «Confidentiality agreements prevent the disclosure of confidential information and trade secrets.» Another court stated that «confidentiality agreements do not necessarily restrict a former worker`s ability to compete with the former employer using the general knowledge, skills and experience of his or her work experience.» As confirmed in these cases, a confidentiality agreement is intended to protect a company`s confidential information and trade secrets from being used against it and must not prevent a former employee from competing with his or her general knowledge and skills.
Morrison v. Profanchik, no. 05-17-01281-CV, 2019 WL 3798182 (Tex. App.-Dallas aug. 13, 2019), completed, n° 05-17-01281-CV, 2019 WL 5112268 (Tex. App.-Dallas Oct. 10, 2019) is a case of non-recourse for breach of confidentiality/non-competition and misappropriation of trade secrets. In Morrison, plaintiff Profanchik approached Stonecoat of Texas to purchase one of his franchises. The parties have entered into a confidentiality/non-competition agreement, provided that the competitor discloses confidential information and trade secrets as part of the due diligence process.
Profanchik subsequently withdrew from the agreement, created a competing limestone plating company, and sued Stonecoat and its owners for criminal remedies arising from the parties` negotiations. Read More Failure to Indicate How Trade Secrets Are Supposed to Be Used Leads to Summary Judgment Rejection of Claims Companies that wish to keep their information confidential often turn to a number of legal contracts. . . .