In Parker v. Schlumberger Technology Corporation, No. 01-14-01018-CV (Tex. App – Houston [1st], September 17, 2015), Schlumberger Technology Corporation (“STC”) filed a lawsuit against two individuals in the 268th District Court of Fort Bend County, Texas. In its complaint, STC accused the former owner and a key employee of a recently purchased company of violating a non-compete agreement each entered into as part of the transaction. In response to the lawsuit, the two men filed a motion to compel arbitration based on the arbitral provision included in the asset purchase contract. The arbitration agreement at issue stated:

Any controversy, dispute or claim arising under or in connection with this Agreement (including, without limitation, the existence, validity, interpretation or breach hereof and any claim based on contract, tort [or] statute) shall be resolved by a binding arbitration, to be held in Houston, Texas pursuant to the Federal Arbitration Act and in accordance with the then-prevailing Commercial Arbitration Rules of the American Arbitration Association (the “AAA”).

Next, STC argued the dispute was not subject to arbitration and instead asked the trial court to issue a temporary injunction prohibiting the two men from competing with the international company. The trial court then denied the individuals’ motion and granted STC’s request. After that, the former owner and employee filed an interlocutory appeal with Texas’ First District in Houston. Before the appeal was heard, however, the former owner settled his claims with STC. Despite this, the appellate court examined the former employee’s claims.

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