Question
Problem 16.2 Employee,aveterinarianlicensedinTexas,entersinto acontractof employmentonwithEmployer.Alsoalicensedveterinarian,Employerownsand operatestwoanimalclinicsintheDallas-FortWorth(DFW)area.Employerhires Employee to manage and to provide veterinary services at his Pethouse Pet Clinic in Arlington, Texas. (Employer himself manages
Problem 16.2 Employee,aveterinarianlicensedinTexas,entersinto acontractof employmentonwithEmployer.Alsoalicensedveterinarian,Employerownsand operatestwoanimalclinicsintheDallas-FortWorth(DFW)area.Employerhires Employee to manage and to provide veterinary services at his Pethouse Pet Clinic in Arlington, Texas. (Employer himself manages a second animal clinic in Plano, Texas, about 40 miles away.) At the time Employee is hired, the Pethouse clinic has been in operation for 15 years and has a large and stable customer base. Employee has moved fromAmarillowhere his own practice had not been terribly successfulto take the job. The contract provides Employee with a base salary, plus a bonus based on the profitability of the Pethouse Pet Clinic. The contract provides that either party may terminate theagreementupon120days'noticetotheotherparty.Thewritten employment contract also contains the following provisions:VoluntaryTermination.(a)Employeeagreesthatuponhisvoluntary terminationoftheEmployee-Employerrelationship,Employee willnotpractice veterinarymedicineinArlington,Texasorwithinaten(10)mileradiusofthe PethousePetClinicinArlington[whichis1007NorthCooperStreet,Arlington, Texas] for a period of three (3) years.(b)Employeeagreesnottoadvertise withintheCityofArlingtonhis departurefromthePethousePetClinicorsendanywrittenannouncementsor announcementsofanysortnotifyingclientsthatheisleavingthepracticeof veterinary medicine at the Pethouse Pet Clinic.(c) Employee further agrees that he will not notify present or past clients of the Pethouse Pet Clinic of new location within three (3) years after his voluntary termination.Eachyearthecontractisrenewedwithachangeinthecompensationscheme, increasing Employee's salary and adding a provision giving him a percentage of the profits.Otherwise, each the new contract is identical to the first, particularly with regard to the noncompete clause.After practicing at Employer's clinic for five years and becoming popular with Pethouse customers, Employee resigns to go to work for more money at Pethouse's majorcompetitor,FurryFriendsAnimalCare.FurryFriendsisapproximately2.2 milesfromPethousePetClinic.Employeeimmediatelysendsnoticeofhisnewpositiontoallofhispatients(or,rather,theirowners)fromPethouseandFurry Friendstakesoutadvertisementsin Mid-CitiesMagazine,the FortWorthStar-Telegram, and the Dallas Morning News-all of which circulate in Arlington, Texas, announcing Employee's new position with Furry Friends. Employersuestoenforcethecovenant.Whataretheargumentsforand against its enforcement?
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