Hair Club for Men Can Block the Competition

     (CN) – Hair Club for Men can enforce a non-compete agreement against two former employees who solicited its clients to join a competing hair clinic, a Texas appeals court ruled.

     Folicure opened a store one mile away from Hair Club’s Houston location. Mallory York and Benetta Reynolds signed non-competition agreements when they began their jobs as Hair Club stylists. They both quit in the fall of 2008 and later went to work for Folicure.
     York and Reynolds have acknowledged that they contacted their former Hair Club clients and invited them to tour the Folicure facility.
     “We hold that the non-solicitation and non-disclosure agreements here are enforceable,” Judge Bland wrote, “and thus Hair Club had a probable right to relief under them.”
     York and Reynolds argued that the agreements specified customer lists, which they had no access to, and not the individual names on those lists.
     “This is a semantic dispute,” Bland ruled. “The customer lists would have necessarily contained the customers’ names.”

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