Legal in Texas

Texas Legal Intel

Thursday, May 21, 2026
2 min read
5 stories

Welcome to your daily briefing on legal developments in Texas. Today we're covering 5 key stories including updates on texas legal headlines, background & context. Let's dive in.

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2

Background & Context

3 stories

2.1

Why your non-compete clause may be unenforceable in TX.

Enforceability of employee non-competes varies dramatically by state and is trending toward narrower enforcement nationally. Common defects include geographic scope broader than the employer's actual market, duration longer than necessary to protect a legitimate interest, and lack of consideration beyond continued employment.

Why It Matters

An overbroad non-compete is often unenforceable in its entirety, not just blue-penciled down — meaning the employer gets no protection at all. A narrower, defensible clause protects more than an aspirational one.

2.2

The IOLTA mistake that ends careers.

Client trust funds and the firm's operating funds must never commingle, even temporarily, even with the intent to "fix it later." Bar audits look for two things first: (1) any check or transfer that touches both accounts, (2) negative balances on any specific client's ledger. Both are presumptive misappropriation regardless of intent.

Why It Matters

Trust-account violations produce some of the harshest discipline in professional regulation, including suspension and disbarment. The technicality has no defense based on good intentions.

2.3

Why a document-retention policy is a litigation asset, not paperwork.

A consistently followed retention policy provides a defense against spoliation claims when documents are destroyed in the ordinary course before litigation was anticipated. Without a policy, every routine deletion looks like targeted destruction in hindsight.

Why It Matters

Adverse-inference instructions arising from spoliation routinely turn winnable cases into losses. A documented policy, consistently applied, is the cleanest defense available.

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Issue Summary

DateMay 21, 2026
Stories5
Sections2
Read Time2 min
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