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Subject: IN THE SUPREME COURT OF TEXAS
Date: Sat, 30 Jun 2007 15:23:38 -0500
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<BODY lang=3DEN-US style=3D"tab-interval: .5in" vLink=3Dblue =
link=3Dblue>
<DIV class=3DSection1>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B><SPAN=20
style=3D"FONT-SIZE: 18pt">IN THE SUPREME COURT OF <st1:State =
w:st=3D"on"><st1:place=20
w:st=3D"on">TEXAS</st1:place></st1:State></SPAN></B></P>
<P class=3DMsoNormal>&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter>&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#=
9552;&#9552;&#9552;&#9552;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" align=3Dcenter><SPAN=20
style=3D"FONT-VARIANT: small-caps">No. 05-0311</SPAN></P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" align=3Dcenter><SPAN=20
style=3D"FONT-VARIANT: =
small-caps">&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#955=
2;&#9552;&#9552;&#9552;</SPAN></P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" align=3Dcenter><SPAN=20
style=3D"FONT-SIZE: 14.5pt; FONT-VARIANT: small-caps"></SPAN>&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" align=3Dcenter><SPAN=20
style=3D"FONT-SIZE: 14.5pt; FONT-VARIANT: small-caps">In re <SPAN=20
class=3DSpellE>AutoNation</SPAN>, Inc. and Auto M. Imports North, Ltd., =
d/b/a=20
Mercedes-Benz of Houston-North, <SPAN =
class=3DSpellE>Relators</SPAN></SPAN></P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" align=3Dcenter><SPAN=20
style=3D"FONT-VARIANT: small-caps"></SPAN>&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" align=3Dcenter><SPAN=20
style=3D"FONT-VARIANT: =
small-caps">&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#955=
2;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&=
#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#95=
52;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;=
&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9=
552;&#9552;</SPAN></P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" align=3Dcenter><SPAN=20
style=3D"FONT-VARIANT: small-caps">On Petition for Writ of =
Mandamus</SPAN></P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center"=20
align=3Dcenter>&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#=
9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#955=
2;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&=
#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#95=
52;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;&#9552;=
&#9552;&#9552;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B></B>&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B></B>&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter><B>Argued October 19,=20
2006</B></P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: center" =
align=3Dcenter>&nbsp;</P>
<P class=3DMsoNormal>&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-INDENT: 0.5in; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"FONT-VARIANT: small-caps">Justice Willett</SPAN> delivered the =
opinion of=20
the Court, in which <SPAN style=3D"FONT-VARIANT: small-caps">Chief =
Justice=20
Jefferson, Justice Hecht, Justice Wainwright, Justice Brister, Justice =
<st1:City=20
w:st=3D"on"><st1:place w:st=3D"on">Medina</st1:place></st1:City>, =
Justice=20
Green</SPAN><SPAN style=3D"TEXT-TRANSFORM: uppercase">, </SPAN>and <SPAN =

style=3D"FONT-VARIANT: small-caps">Justice Johnson</SPAN> joined.</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: justify">&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-INDENT: 0.5in; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"FONT-VARIANT: small-caps">Justice O=92Neill</SPAN> filed a =
concurring=20
opinion.</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: justify">&nbsp;</P>
<P class=3DMsoNormal style=3D"TEXT-ALIGN: justify">&nbsp;</P>
<P class=3DMsoNormal=20
style=3D"TEXT-INDENT: 0.5in; LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
class=3DSpellE>Relator</SPAN> <SPAN class=3DSpellE>AutoNation</SPAN>, =
Inc. sued=20
Garrick Hatfield in <st1:place w:st=3D"on"><st1:State=20
w:st=3D"on">Florida</st1:State></st1:place> to enforce a covenant not to =
compete.=20
In the employment contract containing the covenant, <SPAN=20
class=3DSpellE>AutoNation</SPAN> and Hatfield had agreed to litigate any =
disputes=20
arising under the contract in <st1:State w:st=3D"on">Florida</st1:State> =
under=20
<st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Florida</st1:place></st1:State> law.=20
Hatfield later sued <SPAN class=3DSpellE>AutoNation</SPAN> in <st1:State =

w:st=3D"on"><st1:place w:st=3D"on">Texas</st1:place></st1:State> under =
the contract.=20
The trial court declined to dismiss or stay this action and enjoined =
<SPAN=20
class=3DSpellE>AutoNation</SPAN> from pursuing its first-filed =
<st1:place=20
w:st=3D"on"><st1:State w:st=3D"on">Florida</st1:State></st1:place> =
lawsuit. <SPAN=20
class=3DSpellE>AutoNation</SPAN> now seeks mandamus relief to enforce =
the=20
mandatory forum-selection clause, and we conditionally grant it.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: center"=20
align=3Dcenter><B>I. Factual and Procedural Background</B></P>
<P class=3DMsoNormal=20
style=3D"TEXT-INDENT: 0.5in; LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
class=3DSpellE>AutoNation</SPAN> owns more than 250 automobile =
dealerships across=20
the country. Its corporate headquarters and principal place of business =
are in=20
<st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Florida</st1:place></st1:State>. In=20
1999, <SPAN class=3DSpellE>AutoNation</SPAN> purchased a dealership in =
<st1:City=20
w:st=3D"on"><st1:place w:st=3D"on">Houston</st1:place></st1:City> where =
Hatfield=20
worked. In 2002, Hatfield, a <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> resident, transferred to <SPAN =

class=3DSpellE>relator</SPAN> Auto M. Imports North, Ltd., d/b/a =
Mercedes-Benz of=20
Houston-North (MBHN), another <SPAN class=3DSpellE>AutoNation</SPAN> =
dealership.<A=20
name=3D_ftnref1></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn1"><SPAN=20
style=3D"mso-bookmark: _ftnref1"><SPAN=20
class=3DMsoFootnoteReference>[1]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref1"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref1"></SPAN> Hatfield was employed at will =
as the=20
general manager of MBHN.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>In 2003, Hatfield was required to sign a =93Confidentiality,=20
No-Solicitation/No-Hire and Non-Compete Agreement=94 as a condition of =
continued=20
employment. The agreement was between Hatfield and <SPAN=20
class=3DSpellE>AutoNation</SPAN> =93together with its subsidiaries and =
affiliates,=94=20
and included a one-year covenant not to compete.<A =
name=3D_ftnref2></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn2"><SPAN=20
style=3D"mso-bookmark: _ftnref2"><SPAN=20
class=3DMsoFootnoteReference>[2]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref2"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref2"></SPAN> A choice-of-law provision =
stated that the=20
agreement would be construed under <st1:State =
w:st=3D"on">Florida</st1:State> law,=20
and a forum-selection clause provided that all suits arising out of the=20
agreement must be filed in <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State>.<A name=3D_ftnref3></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn3"><SPAN=20
style=3D"mso-bookmark: _ftnref3"><SPAN=20
class=3DMsoFootnoteReference>[3]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref3"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref3"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>In January 2005, Hatfield left <SPAN =
class=3DSpellE>AutoNation</SPAN> to=20
accept a position with A-Rod OC, L.P., <SPAN class=3DGramE>a</SPAN> =
competing=20
Mercedes-Benz dealership. On February 7, 2005, <SPAN=20
class=3DSpellE>AutoNation</SPAN> sought enforcement of the non-compete =
agreement=20
by filing a suit for injunctive relief and damages against Hatfield in a =
Broward=20
County, Florida, state court.<A name=3D_ftnref4></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn4"><SPAN=20
style=3D"mso-bookmark: _ftnref4"><SPAN=20
class=3DMsoFootnoteReference>[4]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref4"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref4"></SPAN> On March 2, 2005, before =
learning of the=20
<st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Florida</st1:place></st1:State>=20
action, Hatfield and A-Rod filed suit against <SPAN=20
class=3DSpellE>AutoNation</SPAN> and MBHN in a district court in Harris =
County,=20
Texas. This suit sought a declaratory judgment that the non-compete =
obligation=20
was governed by <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> law and was unenforceable.=20
Substantively, the <st1:State w:st=3D"on">Texas</st1:State> and =
<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Florida</st1:place></st1:State> suits =
concern the=20
same issue of whether the non-compete agreement should be enforced. On =
or about=20
March 14, after learning of the Florida suit, Hatfield and A-Rod filed =
an=20
application for temporary restraining order and motion for temporary =
injunction=20
in the Texas action, arguing that Texas law should govern a Texas =
resident=92s=20
non-compete agreement, that <SPAN class=3DSpellE>AutoNation</SPAN> was =
attempting=20
to circumvent Texas law by pursuing the Florida action, and that the =
Florida=20
court likely would refuse to apply Texas law in deciding the =
enforceability of=20
the non-compete agreement. Hatfield cited an unpublished <st1:State=20
w:st=3D"on">Florida</st1:State> case, <SPAN=20
class=3DSpellE><I>AutoNation</I></SPAN><I>, Inc. v. Hankins</I>,<A=20
name=3D_ftnref5></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn5"><SPAN=20
style=3D"mso-bookmark: _ftnref5"><SPAN=20
class=3DMsoFootnoteReference>[5]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref5"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref5"></SPAN> a case involving <SPAN=20
class=3DSpellE>AutoNation</SPAN> and another of its <st1:State=20
w:st=3D"on">Texas</st1:State> employees, in support of his argument that =
the=20
<st1:State w:st=3D"on">Florida</st1:State> court would apply <st1:State=20
w:st=3D"on">Florida</st1:State> non-compete law, which Hatfield =
contended would=20
=93yield a result that offends <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> public policy.=94</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>On March 31, 2005, <SPAN class=3DSpellE>AutoNation</SPAN> =
answered the=20
<st1:State w:st=3D"on">Texas</st1:State> suit and moved to stay it on =
grounds that=20
<SPAN class=3DSpellE>AutoNation</SPAN> and Hatfield were parties to the=20
first-filed <st1:place w:st=3D"on"><st1:State=20
w:st=3D"on">Florida</st1:State></st1:place> action. <SPAN=20
class=3DSpellE>AutoNation</SPAN> also filed a response to the =
application for TRO=20
and motion for temporary injunction, arguing that the <st1:State=20
w:st=3D"on">Texas</st1:State> action should be dismissed or stayed =
because, among=20
other reasons, the parties had contractually agreed to litigate their =
disputes=20
in <st1:State w:st=3D"on">Florida</st1:State> and the <st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Florida</st1:place></st1:State> =
action was filed=20
first.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>On April 5, the <st1:place w:st=3D"on"><st1:State=20
w:st=3D"on">Texas</st1:State></st1:place> court held an injunction =
hearing and=20
stated that it was denying <SPAN class=3DSpellE>AutoNation=92s</SPAN> =
request for a=20
stay and Hatfield=92s request for an injunction. The next day, however, =
after a=20
telephone hearing prompted by Hatfield=92s claim that <SPAN=20
class=3DSpellE>AutoNation</SPAN> had filed a pleading in the Florida =
action that=20
interfered with the jurisdiction of the Texas court, a claim <SPAN=20
class=3DSpellE>AutoNation</SPAN> denied, the Texas court signed a =
temporary=20
anti-suit injunction that enjoined <SPAN =
class=3DSpellE>AutoNation</SPAN> from=20
=93taking any further action in connection with the pending lawsuit in =
Florida . .=20
. attempting to enforce purported covenants against competition signed =
by=20
Garrick Hatfield and <SPAN class=3DSpellE>AutoNation</SPAN>, Inc.,=94 =
and =93filing=20
any future litigation in any non-Texas court seeking to enforce the=20
aforementioned covenants against competition.=94 The court cited the=20
<I>Hankins</I> decision in its order and stated that =93<st1:State=20
w:st=3D"on">Texas</st1:State> public policy will likely be thwarted if =
<SPAN=20
class=3DSpellE>AutoNation</SPAN> is permitted to litigate enforceability =
of the=20
restrictive covenants solely in <st1:State =
w:st=3D"on">Florida</st1:State> and=20
solely under <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State> law.=94 The injunction order =
concluded=20
that =93it is probable the covenant not to compete is unenforceable in =
<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Texas</st1:place></st1:State>,=94 and =
the court=20
scheduled trial for June 13, 2005.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>The next day, <SPAN class=3DSpellE>AutoNation</SPAN> filed a =
notice of=20
accelerated appeal of the injunction order, and the following week it =
filed a=20
petition for writ of mandamus in the court of appeals. The court of =
appeals=20
denied mandamus relief on grounds that an adequate remedy at law was =
available=20
to <SPAN class=3DSpellE>AutoNation</SPAN>, namely its earlier-filed =
interlocutory=20
appeal. <SPAN class=3DSpellE>AutoNation</SPAN> now seeks mandamus relief =
in this=20
Court. It seeks not only relief from the anti-suit injunction but =
dismissal or=20
abatement of the entire case, relief with the intended effect of forcing =

everyone to litigate their dispute in Florida as stipulated in the =
non-compete=20
agreement.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>The court of appeals proceeded to decide and issue an opinion in =
the=20
interlocutory appeal of the injunction order.<A name=3D_ftnref6></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn6"><SPAN=20
style=3D"mso-bookmark: _ftnref6"><SPAN=20
class=3DMsoFootnoteReference>[6]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref6"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref6"></SPAN> The court recognized a general =
policy=20
disfavoring <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> courts from enjoining foreign =
suits, but=20
noted an exception when the injunction is used =93to prevent the evasion =
of=20
important public policy.=94<A name=3D_ftnref7></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn7"><SPAN=20
style=3D"mso-bookmark: _ftnref7"><SPAN=20
class=3DMsoFootnoteReference>[7]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref7"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref7"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>The court of appeals relied on our 1990 decision in <SPAN=20
class=3DSpellE><I>DeSantis</I></SPAN><I> v. <SPAN =
class=3DSpellE>Wackenhut</SPAN>=20
Corp.</I>,<A name=3D_ftnref8></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn8"><SPAN=20
style=3D"mso-bookmark: _ftnref8"><SPAN=20
class=3DMsoFootnoteReference>[8]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref8"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref8"></SPAN> in which we held that the =
enforcement of=20
non-compete covenants was a matter of fundamental Texas public policy, =
governed=20
by Texas law. The court noted that Hatfield had presented the trial =
court with=20
the <I>Hankins </I>decision, which indicated that <st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Florida</st1:place></st1:State> =
courts would=20
apply their own law to this dispute.<A name=3D_ftnref9></A><A title=3D"" =

href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn9"><SPAN=20
style=3D"mso-bookmark: _ftnref9"><SPAN=20
class=3DMsoFootnoteReference>[9]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref9"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref9"></SPAN> The court of appeals concluded =
that=20
=93[b]<SPAN class=3DSpellE>ecause</SPAN> the Texas Supreme Court has =
held that=20
fundamental Texas public policy requires application of Texas law to the =

question of enforceability of a non-compete agreement, we are unable to =
hold=20
that the trial court abused its discretion in issuing an injunction to =
halt the=20
Florida proceeding and allow the Texas case to proceed to trial.=94<A=20
name=3D_ftnref10></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn10"><SPAN=20
style=3D"mso-bookmark: _ftnref10"><SPAN=20
class=3DMsoFootnoteReference>[10]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref10"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref10"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: center"=20
align=3Dcenter><B>II. Discussion</B></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: center"=20
align=3Dcenter><B>A. Mandamus Relief on These Facts Is =
Appropriate</B></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN class=3DSpellE>AutoNation</SPAN> seeks a writ of mandamus =
directing=20
the trial court to dismiss this suit and thereby enforce the =
forum-selection=20
clause in the parties=92 non-<SPAN class=3DGramE>compete</SPAN> =
agreement.<A=20
name=3D_ftnref11></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn11"><SPAN=20
style=3D"mso-bookmark: _ftnref11"><SPAN=20
class=3DMsoFootnoteReference>[11]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref11"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref11"></SPAN> In <SPAN=20
class=3DSpellE><I>In</I></SPAN><I> re Prudential Insurance Co. of =
America</I>, we=20
reaffirmed that mandamus relief will lie if the <SPAN=20
class=3DSpellE>relator</SPAN> establishes a clear abuse of discretion =
for which=20
there is no adequate appellate remedy.<A name=3D_ftnref12></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn12"><SPAN=20
style=3D"mso-bookmark: _ftnref12"><SPAN=20
class=3DMsoFootnoteReference>[12]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref12"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref12"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>Mandamus relief is available to enforce forum-selection clauses. =
In <SPAN=20
class=3DSpellE><I>In</I></SPAN><I> re AIU Insurance Co.</I>, decided the =
same day=20
as <I>Prudential</I>, we recognized that such clauses generally =
=93should be given=20
full effect=94 and =93should control absent a strong showing that [they] =
should be=20
set aside.=94<A name=3D_ftnref13></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn13"><SPAN=20
style=3D"mso-bookmark: _ftnref13"><SPAN=20
class=3DMsoFootnoteReference>[13]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref13"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref13"></SPAN> We observed that =93[s]<SPAN=20
class=3DSpellE>ubjecting</SPAN> a party to trial in a forum other than =
that agreed=20
upon and requiring an appeal to vindicate the rights granted in a=20
forum-selection clause is clear harassment=94<A name=3D_ftnref14></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn14"><SPAN=20
style=3D"mso-bookmark: _ftnref14"><SPAN=20
class=3DMsoFootnoteReference>[14]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref14"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref14"></SPAN>=97harassment that injures not =
just the=20
non-breaching party but the broader judicial system, injecting =
inefficiency by=20
enabling forum-shopping, wasting judicial resources, delaying =
adjudication on=20
the merits, and skewing settlement dynamics contrary to the parties=92=20
contracted-for expectations.<A name=3D_ftnref15></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn15"><SPAN=20
style=3D"mso-bookmark: _ftnref15"><SPAN=20
class=3DMsoFootnoteReference>[15]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref15"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref15"></SPAN> Accordingly, forum-selection=20
clauses=97like arbitration agreements, =93another type of =
forum-selection=20
clause=94=97can be enforced through mandamus.<A name=3D_ftnref16></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn16"><SPAN=20
style=3D"mso-bookmark: _ftnref16"><SPAN=20
class=3DMsoFootnoteReference>[16]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref16"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref16"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>A few months later, in <SPAN class=3DSpellE><I>In</I></SPAN><I> =
re=20
Automated Collection Technologies, Inc.</I>, we again held that failure =
to=20
enforce a contractual forum-selection clause =93constitutes a clear =
abuse of=20
discretion for which there is no adequate remedy by appeal.=94<A=20
name=3D_ftnref17></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn17"><SPAN=20
style=3D"mso-bookmark: _ftnref17"><SPAN=20
class=3DMsoFootnoteReference>[17]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref17"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref17"></SPAN> We therefore granted mandamus =
relief and=20
directed the trial court to dismiss the suit. We held that enforcement =
of a=20
forum-selection clause is =93mandatory=94 unless the opposing party =
clearly shows=20
that enforcement would be unreasonable or unjust, or that the clause is =
invalid=20
for reasons such as fraud or overreaching.<A name=3D_ftnref18></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn18"><SPAN=20
style=3D"mso-bookmark: _ftnref18"><SPAN=20
class=3DMsoFootnoteReference>[18]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref18"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref18"></SPAN> And in <I>Automated Collection =

Technologies</I>, unlike here, there was no first-filed lawsuit in the =
parties=92=20
agreed forum.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: center"=20
align=3Dcenter><B>B. <SPAN class=3DGramE>The Parties=92</SPAN> Freely =
Negotiated=20
Contract Should be Respected</B></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>Our decisions in <I>AIU</I> and <I>Automated Collection =
Technologies</I>=20
regarding the propriety of mandamus relief in forum-selection cases =
comport with=20
the principle that parties generally have the freedom to negotiate =
agreements as=20
they see fit.<A name=3D_ftnref19></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn19"><SPAN=20
style=3D"mso-bookmark: _ftnref19"><SPAN=20
class=3DMsoFootnoteReference>[19]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref19"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref19"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>Hatfield did not demonstrate fraud, overreaching, or undue =
hardship that=20
would provide an exception to the rule that forum-selection clauses are=20
generally honored. Instead, relying on our decision in <SPAN=20
class=3DSpellE><I>DeSantis</I></SPAN>, which involved only a =
choice-of-law=20
provision and not a forum-selection clause, Hatfield insists we must =
disregard=20
the forum-selection clause because the pending case concerns a covenant =
not to=20
compete.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>In <SPAN class=3DSpellE><I>DeSantis</I></SPAN>, a <st1:State=20
w:st=3D"on">Florida</st1:State> corporation filed suit in <st1:State=20
w:st=3D"on">Texas</st1:State> against one of its <st1:place =
w:st=3D"on"><st1:State=20
w:st=3D"on">Texas</st1:State></st1:place> employees for violation of a =
non-compete=20
agreement. The agreement included a choice-of-law provision specifying =
that=20
<st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Florida</st1:place></st1:State> law=20
would govern disputes under the agreement. We held that <st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Texas</st1:place></st1:State> law =
should govern=20
the dispute despite the choice-of-law provision.<A =
name=3D_ftnref20></A><A=20
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn20"><SPAN=20
style=3D"mso-bookmark: _ftnref20"><SPAN=20
class=3DMsoFootnoteReference>[20]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref20"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref20"></SPAN> We reasoned that <st1:State=20
w:st=3D"on">Texas</st1:State> law should control because, among other =
reasons,=20
=93the law governing enforcement of <SPAN =
class=3DSpellE>noncompetition</SPAN>=20
agreements is fundamental policy in <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State>=94 and =93to apply the law of =
another state=20
to determine the enforceability of such an agreement in the =
circumstances of a=20
case like this would be contrary to that policy.=94<A =
name=3D_ftnref21></A><A=20
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn21"><SPAN=20
style=3D"mso-bookmark: _ftnref21"><SPAN=20
class=3DMsoFootnoteReference>[21]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref21"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref21"></SPAN> We therefore held that =
enforceability of=20
the non-compete agreement =93must be judged by <st1:State=20
w:st=3D"on">Texas</st1:State> law, not <st1:State w:st=3D"on"><st1:place =

w:st=3D"on">Florida</st1:place></st1:State> law.=94<A =
name=3D_ftnref22></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn22"><SPAN=20
style=3D"mso-bookmark: _ftnref22"><SPAN=20
class=3DMsoFootnoteReference>[22]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref22"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref22"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>Our decision today in no way questions the reasoning of <SPAN=20
class=3DSpellE><I>DeSantis</I></SPAN>, but we decline Hatfield=92s =
invitation to=20
superimpose the <SPAN class=3DSpellE><I>DeSantis</I></SPAN> =
choice-of-law analysis=20
onto the law governing forum-selection clauses.<A =
name=3D_ftnref23></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn23"><SPAN=20
style=3D"mso-bookmark: _ftnref23"><SPAN=20
class=3DMsoFootnoteReference>[23]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref23"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref23"></SPAN> While <SPAN=20
class=3DSpellE><I>DeSantis</I></SPAN> and the instant case both concern =
<st1:State=20
w:st=3D"on">Texas</st1:State> citizens working in <st1:State =
w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> for a Florida-based company, =
there are=20
critical distinctions. <SPAN class=3DSpellE><I>DeSantis</I></SPAN>, =
decided before=20
the now-applicable version of the Covenants Not to Compete Act<A=20
name=3D_ftnref24></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn24"><SPAN=20
style=3D"mso-bookmark: _ftnref24"><SPAN=20
class=3DMsoFootnoteReference>[24]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref24"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref24"></SPAN> and our recent decision in =
<SPAN=20
class=3DSpellE><I>Sheshunoff</I></SPAN> construing the Act,<A=20
name=3D_ftnref25></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn25"><SPAN=20
style=3D"mso-bookmark: _ftnref25"><SPAN=20
class=3DMsoFootnoteReference>[25]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref25"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref25"></SPAN> did not concern a mandatory=20
forum-selection clause or first-filed litigation in the parties=92 =
chosen=20
jurisdiction. <SPAN class=3DSpellE><I>DeSantis</I></SPAN> concerned how =
<st1:State=20
w:st=3D"on"><I>Texas</I></st1:State><I> </I>courts should construe =
employment=20
contracts of <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> employees. We observed that =
=93<st1:State=20
w:st=3D"on">Texas</st1:State> has a materially greater interest than =
<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Florida</st1:place></st1:State> in =
deciding=20
whether the <SPAN class=3DSpellE>noncompetition</SPAN> agreement in this =
case=20
should be enforced.=94<A name=3D_ftnref26></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn26"><SPAN=20
style=3D"mso-bookmark: _ftnref26"><SPAN=20
class=3DMsoFootnoteReference>[26]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref26"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref26"></SPAN> But we have never declared =
that=20
fundamental <st1:State w:st=3D"on">Texas</st1:State> policy requires =
that every=20
employment dispute with a <st1:State w:st=3D"on">Texas</st1:State> =
resident must=20
be litigated in <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State>. We recognized in <I>AIU =
</I>that even=20
where <st1:State w:st=3D"on">Texas</st1:State> statutory provisions =
specify the=20
application of <st1:State w:st=3D"on">Texas</st1:State> law, these =
provisions are=20
irrelevant to the enforceability of a forum-selection clause where no =
statute=20
=93requires suit to be brought or maintained in <st1:State =
w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State>.=94<A name=3D_ftnref27></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn27"><SPAN=20
style=3D"mso-bookmark: _ftnref27"><SPAN=20
class=3DMsoFootnoteReference>[27]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref27"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref27"></SPAN> Along similar lines, even if =
<SPAN=20
class=3DSpellE><I>DeSantis</I></SPAN><I> </I>requires <st1:State=20
w:st=3D"on">Texas</st1:State> courts to apply <st1:State=20
w:st=3D"on">Texas</st1:State> law to certain employment disputes, it =
does not=20
require suit to be brought in <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> when a forum-selection clause =
mandates=20
venue elsewhere. No <st1:State w:st=3D"on">Texas</st1:State> precedent =
compels us=20
to enjoin a party from asking a <st1:State =
w:st=3D"on">Florida</st1:State> court=20
to honor the parties=92 express agreement to litigate a non-<SPAN=20
class=3DGramE>compete</SPAN> agreement in <st1:place =
w:st=3D"on"><st1:State=20
w:st=3D"on">Florida</st1:State></st1:place>, the employer=92s =
headquarters and=20
principal place of business.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>Under<I> Automated Collection Technologies</I> and <I>AIU</I>, =
our=20
controlling precedents on forum-selection clauses, the parties=92 =
bargained-for=20
agreement merits judicial respect. This dispute should be heard in the=20
first-filed <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State> action, as the parties =
explicitly=20
contracted.<A name=3D_ftnref28></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn28"><SPAN=20
style=3D"mso-bookmark: _ftnref28"><SPAN=20
class=3DMsoFootnoteReference>[28]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref28"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref28"></SPAN></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><B><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN></B>Finally, we note that today=92s decision according deference =
to the=20
first-filed <st1:place w:st=3D"on"><st1:State=20
w:st=3D"on">Florida</st1:State></st1:place> action, besides honoring the =
parties=92=20
contractual commitment, also honors principles of interstate comity. Our =
federal=20
system benefits from a measure of state-to-state comity, which, while =
not a=20
constitutional obligation, is =93a principle of mutual convenience =
whereby one=20
state or jurisdiction will give effect to the laws and judicial =
decisions of=20
another.=94<A name=3D_ftnref29></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn29"><SPAN=20
style=3D"mso-bookmark: _ftnref29"><SPAN=20
class=3DMsoFootnoteReference>[29]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref29"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref29"></SPAN> When a matter is first filed =
in another=20
state, the general rule is that <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> courts stay the later-filed =
proceeding=20
pending adjudication of the first suit.<A name=3D_ftnref30></A><A =
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn30"><SPAN=20
style=3D"mso-bookmark: _ftnref30"><SPAN=20
class=3DMsoFootnoteReference>[30]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref30"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref30"></SPAN> Although the mere <SPAN=20
class=3DSpellE>pendency</SPAN> of a previously filed action in one state =
does not,=20
in itself, mandate abatement or dismissal in another state, deference =
seems=20
particularly appropriate here. <SPAN =
class=3DSpellE>AutoNation=92s</SPAN>=20
first-filed <st1:State w:st=3D"on">Florida</st1:State> action is not an =
attempt to=20
litigate a purely <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> matter in a forum that has no =
relation=20
to the parties or their agreement. <st1:State =
w:st=3D"on">Florida</st1:State> has=20
an interest in this dispute, as described in two published interlocutory =

appellate decisions in the related <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State> suit.<A =
name=3D_ftnref31></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn31"><SPAN=20
style=3D"mso-bookmark: _ftnref31"><SPAN=20
class=3DMsoFootnoteReference>[31]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref31"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref31"></SPAN> Here, comity is not pitted =
against=20
fundamental <st1:State w:st=3D"on">Texas</st1:State> policy,<A=20
name=3D_ftnref32></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftn32"><SPAN=20
style=3D"mso-bookmark: _ftnref32"><SPAN=20
class=3DMsoFootnoteReference>[32]</SPAN></SPAN><SPAN=20
style=3D"mso-bookmark: _ftnref32"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftnref32"></SPAN> which does not require that =
every=20
non-compete case involving a <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> resident be litigated in our =
courts, as=20
explained above. Accordingly, and without offending <SPAN=20
class=3DSpellE><I>DeSantis</I></SPAN>, we will not presume to tell the =
forty-nine=20
other states that they cannot hear a non-<SPAN =
class=3DGramE>compete</SPAN> case=20
involving a <st1:place w:st=3D"on"><st1:State=20
w:st=3D"on">Texas</st1:State></st1:place> resident-employee and decide =
what law=20
applies, particularly where the parties voluntarily agree to litigate=20
enforceability disputes there and not here. Our holding today rests =
squarely on=20
the parties=92 contractual commitment, but it carries the concomitant =
benefit of=20
extending comity to the <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State> courts.</P>
<P class=3DMsoNormal><o:p>&nbsp;</o:p></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: center"=20
align=3Dcenter><B>III.</B> <B>Conclusion</B></P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>We conditionally grant the writ of mandamus and direct the trial =
court to=20
dismiss this suit in favor of the first-filed <st1:place =
w:st=3D"on"><st1:State=20
w:st=3D"on">Florida</st1:State></st1:place> action in the parties=92 =
contracted-for=20
forum. <SPAN style=3D"TEXT-TRANSFORM: uppercase">Tex. <SPAN =
class=3DGramE>R. App.=20
P.<SPAN style=3D"TEXT-TRANSFORM: none"> 52.8(c).</SPAN></SPAN></SPAN> We =
are=20
confident that the trial court will comply; our writ will issue only if =
it does=20
not.</P>
<P class=3DMsoNormal style=3D"LINE-HEIGHT: 200%">&nbsp;</P>
<P class=3DMsoNormal><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>_______________________________________</P>
<P class=3DMsoNormal><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>Don R. Willett</P>
<P class=3DMsoNormal><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN><SPAN=20
style=3D"mso-tab-count: =
1">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;=20
</SPAN>Justice</P>
<P class=3DMsoNormal>&nbsp;</P>
<P class=3DMsoNormal>Opinion delivered: June 29, 2007</P>
<DIV>
<P class=3DMsoNormal><BR style=3D"mso-special-character: line-break" =
clear=3Dall></P>
<DIV>
<DIV class=3DMsoNormal>
<HR align=3Dleft width=3D"33%" SIZE=3D1>
</DIV></DIV>
<DIV id=3Dftn1>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn1></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref1"><SPAN=20
style=3D"mso-bookmark: _ftn1"><SUP>[1]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn1"></SPAN></A><SPAN style=3D"mso-bookmark: =
_ftn1"></SPAN>=20
<SPAN class=3DSpellE>Relators</SPAN> <SPAN =
class=3DSpellE>AutoNation</SPAN> and MBHN=20
are sometimes referred to collectively as <SPAN =
class=3DSpellE>AutoNation</SPAN>.=20
The precise relationship between <SPAN class=3DSpellE>AutoNation</SPAN> =
and MBHN=20
is unclear from the record. MBHN is described in the original petition =
as a=20
<st1:State w:st=3D"on">Texas</st1:State> limited partnership and one of =
<SPAN=20
class=3DSpellE>AutoNation=92s</SPAN> many <st1:State =
w:st=3D"on"><st1:place=20
w:st=3D"on">Texas</st1:place></st1:State> dealerships, while other =
pleadings state=20
that MBHN is owned by or is an affiliate of <SPAN=20
class=3DSpellE>AutoNation</SPAN>. Regardless, the non-compete agreement =
in issue=20
expressly applies to affiliates of <SPAN =
class=3DSpellE>AutoNation</SPAN>, and=20
Hatfield concedes that MBHN is such an affiliate and that the =
restrictive=20
covenants here =93were all between Hatfield and <SPAN=20
class=3DSpellE>AutoNation</SPAN>, together with its subsidiaries and=20
affiliates.=94</P></DIV>
<DIV id=3Dftn2>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn2></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref2"><SPAN=20
style=3D"mso-bookmark: _ftn2"><SUP>[2]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn2"></SPAN></A><SPAN style=3D"mso-bookmark: =
_ftn2"></SPAN>=20
The agreement states:</P>
<P class=3DMsoNormal style=3D"MARGIN: 12pt 0.5in 0pt; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"FONT-SIZE: 10pt">Except where such agreement is prohibited by =
applicable=20
law, Employee hereby agrees that he/she shall not during the period =
commencing=20
on the date hereof and ending one year after the date that Employee=92s =
employment=20
or engagement with the Company is terminated (for any reason), directly =
or=20
indirectly, alone or in any other capacity . . . engage in selling, =
leasing, or=20
servicing of any new or used vehicles . . . anywhere (<SPAN=20
class=3DSpellE>i</SPAN>) within a fifty (50) mile radius of the =
dealership or=20
office at which Employee is employed by the Company or a Subsidiary or =
Affiliate=20
of the Company or (ii) within a ten (10) mile radius of any new or used =
vehicle=20
dealership owned or operated by the Company or any Subsidiary or =
Affiliate of=20
the Company located anywhere in the United States . . . .</SPAN></P>
<P class=3DMsoNormal style=3D"MARGIN-TOP: 12pt; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"FONT-SIZE: 10pt">The agreement also had a provision prohibiting =
Hatfield=20
from hiring <SPAN class=3DSpellE>AutoNation=92s</SPAN> employees or =
soliciting its=20
customers for a one-year period after termination. </SPAN></P></DIV>
<DIV id=3Dftn3>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn3></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref3"><SPAN=20
style=3D"mso-bookmark: _ftn3"><SUP>[3]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn3"></SPAN></A><SPAN style=3D"mso-bookmark: =
_ftn3"></SPAN>=20
The agreement states:</P>
<P class=3DMsoNormal style=3D"MARGIN: 12pt 0.5in 0pt; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"FONT-SIZE: 10pt">The Agreement will be governed by and =
construed in=20
accordance with the laws of the State of <st1:State =
w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State>, without regard to =
principles of=20
conflict of laws. The parties agree that any action, suit or proceeding =
arising=20
out of or relative to this Agreement or the relationship of Employee and =
Company=20
shall be instituted only in the state or federal courts located in =
Broward=20
County, in the [S]<SPAN class=3DSpellE>tate</SPAN> of Florida, and each =
party=20
waives any objection which such party may now or hereafter have to such =
venue or=20
jurisdictional court in any action, suit or proceeding.</SPAN></P>
<P class=3DMsoNormal style=3D"MARGIN-TOP: 12pt; TEXT-ALIGN: =
justify"><SPAN=20
style=3D"FONT-SIZE: 10pt">Hatfield and <SPAN =
class=3DSpellE>AutoNation</SPAN> also=20
entered into a Stock Option Agreement in 2001. This agreement contained =
a=20
non-compete provision that prohibited Hatfield from hiring <SPAN=20
class=3DSpellE>AutoNation=92s</SPAN> employees or soliciting its =
customers for a=20
one-year period after termination, and also contained <st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Florida</st1:place></st1:State> =
choice-of-law and=20
forum-selection provisions. Hatfield also signed in 2002 a Restrictive =
Covenants=20
and Confidentiality Agreement, containing restrictive covenants like =
those in=20
the 2003 non-compete agreement, and likewise containing <st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Florida</st1:place></st1:State> =
choice-of-law and=20
forum-selection provisions. The three agreements Hatfield signed all =
contained=20
promises on his part not to disclose confidential information and=20
documents.</SPAN></P></DIV>
<DIV id=3Dftn4>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn4></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref4"><SPAN=20
style=3D"mso-bookmark: _ftn4"><SUP>[4]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn4"></SPAN></A><SPAN style=3D"mso-bookmark: =
_ftn4"></SPAN>=20
The <st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Florida</st1:place></st1:State>=20
trial court denied Hatfield=92s motion to dismiss for lack of personal=20
jurisdiction. A <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State> appellate court has affirmed =
the trial=20
court=92s decision. <I>Hatfield v. <SPAN =
class=3DSpellE>AutoNation</SPAN>, Inc.</I>,=20
915 So.2d 1236 (<st1:address w:st=3D"on">Fla. Dist. Ct. =
App.</st1:address> 2005),=20
<I>review denied</I>, 940 So.2d 1124 (<st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Fla.</st1:place></st1:State> 2006) (table). The trial court =
also=20
entered a temporary injunction against Hatfield based on a finding that =
he had=20
misappropriated <SPAN class=3DSpellE>AutoNation=92s</SPAN> trade =
secrets. <SPAN=20
class=3DSpellE><I>AutoNation</I></SPAN><I>, Inc. v. Hatfield</I>, No. =
05-02037,=20
2006 WL 60547 (<st1:State w:st=3D"on">Fla.</st1:State> Cir. <st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Ct.</st1:place></st1:State> Jan. 4, =
2006). This=20
order was also affirmed on appeal, and the <st1:State=20
w:st=3D"on">Florida</st1:State> appellate court noted that =93the =
existence of=20
<st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Florida</st1:place></st1:State>=92s=20
trade secret statute illustrates our state=92s interest in protecting =
businesses=20
from theft of confidential information.=94 <SPAN =
class=3DGramE><I>Hatfield v. <SPAN=20
class=3DSpellE>AutoNation</SPAN>, Inc.</I>, 939 So.2d 155, 158 =
(<st1:address=20
w:st=3D"on">Fla. Dist. Ct. App.</st1:address> 2006).</SPAN></P></DIV>
<DIV id=3Dftn5>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn5></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref5"><SPAN=20
style=3D"mso-bookmark: _ftn5"><SUP>[5]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn5"></SPAN></A><SPAN style=3D"mso-bookmark: =
_ftn5"></SPAN>=20
No. 03-14544 CACE (05), 2003 WL 22852206 (<st1:State =
w:st=3D"on">Fla.</st1:State>=20
Cir. <st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Ct.</st1:place></st1:State> Nov.=20
24, 2003).</P></DIV>
<DIV id=3Dftn6>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn6></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref6"><SPAN=20
style=3D"mso-bookmark: _ftn6"><SPAN=20
class=3DGramE><SUP>[6]</SUP></SPAN></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn6"></SPAN><SPAN class=3DGramE> 186 S.W.3d =
576.</SPAN> The=20
court of appeals stayed proceedings in the trial court pending its =
decision in=20
the interlocutory appeal. After the court of appeals ruled, we issued a =
stay of=20
proceedings in the trial court pending our review of the instant =
mandamus=20
action.</P></DIV>
<DIV id=3Dftn7>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn7></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref7"><SPAN=20
style=3D"mso-bookmark: _ftn7"><SUP>[7]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn7"></SPAN></A><SPAN style=3D"mso-bookmark: =
_ftn7"></SPAN>=20
<st1:State w:st=3D"on"><I>Id.</I></st1:State> at 578 (quoting <I>Golden =
Rule Ins.=20
Co. v. Harper</I>, 925 S.W.2d 649, 651 (<st1:State =
w:st=3D"on"><st1:place=20
w:st=3D"on">Tex.</st1:place></st1:State> 1996)).</P></DIV>
<DIV id=3Dftn8>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn8></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref8"><SPAN=20
style=3D"mso-bookmark: _ftn8"><SUP>[8]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn8"></SPAN></A><SPAN style=3D"mso-bookmark: =
_ftn8"></SPAN>=20
793 S.W.2d 670 (<st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Tex.</st1:place></st1:State> 1990).</P></DIV>
<DIV id=3Dftn9>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn9></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref9"><SPAN=20
style=3D"mso-bookmark: _ftn9"><SPAN=20
class=3DGramE><SUP>[9]</SUP></SPAN></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn9"></SPAN><SPAN class=3DGramE> 186 S.W.3d at=20
579.</SPAN></P></DIV>
<DIV id=3Dftn10>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn10></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref10"><SPAN=20
style=3D"mso-bookmark: _ftn10"><SUP>[10]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn10"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn10"></SPAN> <st1:State w:st=3D"on"><st1:place =

w:st=3D"on"><I>Id.</I></st1:place></st1:State> at 580=9681. As we read =
the court of=20
appeals decision, it did not decide whether Texas and Florida law compel =

different results as to the enforceability of the non-compete covenant, =
but the=20
court did quote language from the trial court=92s injunction order, =
stating that=20
=93by litigating in Florida under Florida law, Texas public policy may =
be thwarted=20
by obtaining enforcement in Florida of restrictive covenants involving =
Texas=20
citizens [and] Texas places of business that would not be enforceable in =
Texas.=94=20
<st1:place w:st=3D"on"><st1:State w:st=3D"on"><SPAN=20
class=3DGramE><I>Id.</I></SPAN></st1:State></st1:place><SPAN =
class=3DGramE> at=20
581.</SPAN> We do not reach this question today, but note that our =
recent=20
decision in <I>Alex <SPAN class=3DSpellE>Sheshunoff</SPAN> Management =
Services,=20
L.P. v. Johnson</I>, 209 S.W.3d 644 (Tex. 2006), modified Texas law =
governing=20
the enforceability of non-compete covenants.</P></DIV>
<DIV id=3Dftn11>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn11></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref11"><SPAN=20
style=3D"mso-bookmark: _ftn11"><SUP>[11]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn11"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn11"></SPAN> The relief <SPAN=20
class=3DSpellE>AutoNation</SPAN> seeks by way of mandamus is broader =
than the=20
relief from the temporary injunction that was the subject of its =
interlocutory=20
appeal to the court of appeals. The interlocutory <SPAN =
class=3DGramE>appeal was=20
necessarily limited to challenging the anti-suit injunction against =
litigating=20
the dispute in <st1:State w:st=3D"on"><st1:place=20
w:st=3D"on">Florida</st1:place></st1:State> or elsewhere, =
<I>see</I></SPAN> <SPAN=20
style=3D"TEXT-TRANSFORM: uppercase">Tex. Civ. Prac. &amp; Rem. =
Code</SPAN> =A7=20
51.014(4), while the mandamus petition to this Court seeks dismissal of =
the=20
entire <st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Texas</st1:place></st1:State>=20
action, or alternatively a stay of the suit. While appeal to the court =
of=20
appeals of the temporary injunction order is final absent Supreme Court=20
conflicts or dissent jurisdiction, <I>see</I> <SPAN=20
style=3D"TEXT-TRANSFORM: uppercase">Tex. Gov=92t Code</SPAN> =A7 =
22.225(b)(3), (c), we=20
have mandamus jurisdiction in the pending cause regardless of the =
finality of=20
the court of appeals=92 ruling in the interlocutory appeal of the =
temporary=20
injunction. We are not divested of mandamus jurisdiction because we lack =

appellate jurisdiction. <I>See Deloitte &amp; <SPAN =
class=3DSpellE>Touche</SPAN>=20
LLP v. Fourteenth Court of Appeals</I>, 951 S.W.2d 394, 396 (<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Tex.</st1:place></st1:State> =
1997).</P></DIV>
<DIV id=3Dftn12>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn12></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref12"><SPAN=20
style=3D"mso-bookmark: _ftn12"><SUP>[12]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn12"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn12"></SPAN> 148 S.W.3d 124, 135=9636 =
(<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Tex.</st1:place></st1:State> =
2004).</P></DIV>
<DIV id=3Dftn13>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn13></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref13"><SPAN=20
style=3D"mso-bookmark: _ftn13"><SUP>[13]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn13"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn13"></SPAN> 148 S.W.3d 109, 111=9612 =
(<st1:State=20
w:st=3D"on">Tex.</st1:State> 2004) (quoting <I>M/S Bremen v. Zapata =
Off-Shore=20
Co.</I>, 407 <st1:country-region w:st=3D"on"><st1:place=20
w:st=3D"on">U.S.</st1:place></st1:country-region> 1, 13, 15 =
(1972)).</P></DIV>
<DIV id=3Dftn14>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn14></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref14"><SPAN=20
style=3D"mso-bookmark: _ftn14"><SUP>[14]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn14"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn14"></SPAN> <st1:State w:st=3D"on"><st1:place =

w:st=3D"on"><I>Id</I>.</st1:place></st1:State> at 117.</P></DIV>
<DIV id=3Dftn15>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn15></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref15"><SPAN=20
style=3D"mso-bookmark: _ftn15"><SUP>[15]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn15"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn15"></SPAN> Our decision in <I>AIU</I> relied =
on the=20
United States Supreme Court=92s conclusion in <I>The M/S Bremen v. =
Zapata=20
Off-Shore Co.</I> that the correct approach is to enforce a =
forum-selection=20
clause unless the opposing party makes a clear showing that (1) =
enforcement=20
would be unreasonable or unjust; (2) the clause is invalid for reasons =
such as=20
fraud or overreaching; (3) enforcement would contravene a strong public =
policy=20
of the forum where the suit was brought; or (4) =93the contractually =
selected=20
forum would be seriously inconvenient for trial.=94<I> <st1:State =
w:st=3D"on"><SPAN=20
class=3DGramE>Id.</SPAN></st1:State></I><SPAN class=3DGramE> at 112 =
(citing <I>M/S=20
Bremen</I>, 407 <st1:country-region w:st=3D"on"><st1:place=20
w:st=3D"on">U.S.</st1:place></st1:country-region> at 15=9617).</SPAN> =
Hatfield=20
asserts the third factor above.</P></DIV>
<DIV id=3Dftn16>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn16></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref16"><SPAN=20
style=3D"mso-bookmark: _ftn16"><SUP>[16]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn16"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn16"></SPAN> <st1:State w:st=3D"on"><st1:place =

w:st=3D"on"><I>Id.</I></st1:place></st1:State> at 115.</P></DIV>
<DIV id=3Dftn17>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn17></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref17"><SPAN=20
style=3D"mso-bookmark: _ftn17"><SUP>[17]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn17"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn17"></SPAN> 156 S.W.3d 557, 558 (<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Tex.</st1:place></st1:State> =
2004).</P></DIV>
<DIV id=3Dftn18>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn18></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref18"><SPAN=20
style=3D"mso-bookmark: _ftn18"><SUP>[18]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn18"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn18"></SPAN> <st1:State w:st=3D"on"><st1:place =

w:st=3D"on"><I>Id.</I></st1:place></st1:State> at 559. </P></DIV>
<DIV id=3Dftn19>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn19></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref19"><SPAN=20
style=3D"mso-bookmark: _ftn19"><SUP>[19]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn19"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn19"></SPAN> <I>See, e.g.</I>,<I> BMG Direct =
Mktg., Inc.=20
v. <SPAN class=3DSpellE>Peake</SPAN></I>, 178 S.W.3d 763, 767 (Tex. =
2005) (noting=20
=93Texas=92s public policy strongly favoring the freedom of parties to =
contract=94);=20
<I>In re Prudential</I>, 148 S.W.3d at 129=9630 &amp; n.11 (Tex. 2004)=20
(recognizing that =93parties have the right to contract as they see fit =
as long as=20
their agreement does not violate the law or public policy=94);<SPAN=20
style=3D"FONT-SIZE: 12pt"> </SPAN><I>Lawrence v. C.D.B. <SPAN=20
class=3DSpellE>Servs</SPAN>., Inc.</I>, 44 S.W.3d 544, 553 (Tex. 2001) =
(=93[W]e have=20
long recognized a strong public policy in favor of preserving the =
freedom of=20
contract.=94).</P></DIV>
<DIV id=3Dftn20>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn20></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref20"><SPAN=20
style=3D"mso-bookmark: _ftn20"><SUP>[20]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn20"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn20"></SPAN> <SPAN =
class=3DSpellE><I>DeSantis</I></SPAN>,=20
<SPAN class=3DGramE>793 S.W.2d at 681</SPAN>.</P></DIV>
<DIV id=3Dftn21>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn21></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref21"><SPAN=20
style=3D"mso-bookmark: _ftn21"><SUP>[21]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn21"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn21"></SPAN> <st1:State w:st=3D"on"><st1:place =

w:st=3D"on"><I>Id.</I></st1:place></st1:State></P></DIV>
<DIV id=3Dftn22>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn22></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref22"><SPAN=20
style=3D"mso-bookmark: _ftn22"><SUP>[22]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn22"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn22"></SPAN> <st1:State w:st=3D"on"><st1:place =

w:st=3D"on"><I>Id.</I></st1:place></st1:State></P></DIV>
<DIV id=3Dftn23>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn23></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref23"><SPAN=20
style=3D"mso-bookmark: _ftn23"><SUP>[23]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn23"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn23"></SPAN> <I>See <SPAN =
class=3DSpellE>Holeman</SPAN> v.=20
Nat=92l Bus. Inst., Inc.</I>, 94 S.W.3d 91, 96, 98 (Tex. =
App.=97<st1:City=20
w:st=3D"on"><st1:place w:st=3D"on">Houston</st1:place></st1:City> [14th =
Dist.] 2002,=20
pet. denied) (refusing to =93abandon the entire body of law governing =
the=20
enforceability of forum selection clauses=94 and to =93superimpose the =
choice of law=20
analysis of <SPAN class=3DSpellE><I>DeSantis</I></SPAN> onto the law =
applicable to=20
forum selection clauses=94).</P></DIV>
<DIV id=3Dftn24>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn24></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref24"><SPAN=20
style=3D"mso-bookmark: _ftn24"><SUP>[24]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn24"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn24"></SPAN> <SPAN=20
style=3D"TEXT-TRANSFORM: uppercase">Tex. Bus. &amp; Com. Code</SPAN> =
=A7=A7=20
15.50=9615.52 (Covenants Not to Compete Act); <I>see also Light v. <SPAN =

class=3DSpellE>Centel</SPAN> Cellular Co.</I>, 883 S.W.2d 642, 643=9644 =
(<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Tex.</st1:place></st1:State> =
1994).</P></DIV>
<DIV id=3Dftn25>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn25></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref25"><SPAN=20
style=3D"mso-bookmark: _ftn25"><SUP>[25]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn25"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn25"></SPAN> 209 S.W.3d 644 (<st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Tex.</st1:place></st1:State> =
2006).</P></DIV>
<DIV id=3Dftn26>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn26></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref26"><SPAN=20
style=3D"mso-bookmark: _ftn26"><SUP>[26]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn26"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn26"></SPAN> <SPAN =
class=3DSpellE><I>DeSantis</I></SPAN>,=20
<SPAN class=3DGramE>793 S.W.2d at 679</SPAN>.</P></DIV>
<DIV id=3Dftn27>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn27></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref27"><SPAN=20
style=3D"mso-bookmark: _ftn27"><SUP>[27]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn27"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn27"></SPAN> <I>AIU</I>, 148 S.W.3d at 114 =
(discussing=20
Texas Insurance Code article 21.42 and former article 21.43 (<I>repealed =
by</I>=20
Act of May 22, 2001, 77th Leg., R.S., <SPAN class=3DSpellE>ch</SPAN>. =
1419, =A7=20
31(a), 2001 Tex. Gen. Laws 4208)).</P></DIV>
<DIV id=3Dftn28>
<P class=3DMsoFootnoteText style=3D"MARGIN-TOP: 12pt"><A =
name=3D_ftn28></A><A title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref28"><SPAN=20
style=3D"mso-bookmark: _ftn28"><SUP>[28]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn28"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn28"></SPAN> The parties briefed the issue of =
whether=20
A-Rod is bound by the forum-selection clauses. Our instant concern is =
whether=20
A-Rod can independently pursue this declaratory judgment suit in =
<st1:State=20
w:st=3D"on">Texas</st1:State> even if Hatfield is compelled to litigate =
the=20
enforceability of the non-<SPAN class=3DGramE>compete</SPAN> agreement =
in=20
<st1:place w:st=3D"on"><st1:State =
w:st=3D"on">Florida</st1:State></st1:place>, or=20
whether instead the entire suit should be dismissed. The one-year period =
for the=20
non-compete covenant has now expired. To the extent that A-Rod ever had =
standing=20
to challenge the validity of the non-<SPAN class=3DGramE>compete</SPAN> =
agreement,=20
that challenge is now moot. <SPAN class=3DSpellE>AutoNation</SPAN> has =
asserted no=20
claims against A-Rod in either the <st1:State =
w:st=3D"on">Texas</st1:State> or=20
<st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Florida</st1:place></st1:State>=20
action. The dispute is not moot as to Hatfield, however, as the issue of =
damages=20
for alleged breach of the agreement remains. The <st1:State=20
w:st=3D"on">Florida</st1:State> suit includes a claim for damages =
against=20
Hatfield, and as described above the <st1:place w:st=3D"on"><st1:State=20
w:st=3D"on">Texas</st1:State></st1:place> suit has enjoined <SPAN=20
class=3DSpellE>AutoNation</SPAN> from attempting to enforce the =
non-<SPAN=20
class=3DGramE>compete</SPAN> agreement.</P></DIV>
<DIV id=3Dftn29>
<P class=3DMsoFootnoteText style=3D"MARGIN: 12pt 0in 5pt"><A =
name=3D_ftn29></A><A=20
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref29"><SPAN=20
style=3D"mso-bookmark: _ftn29"><SUP>[29]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn29"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn29"></SPAN> <I>Gannon v. Payne</I>, 706 =
S.W.2d 304, 306=20
(<st1:State w:st=3D"on"><st1:place =
w:st=3D"on">Tex.</st1:place></st1:State> 1986)=20
(internal quotation marks omitted).</P></DIV>
<DIV id=3Dftn30>
<P class=3DMsoFootnoteText style=3D"MARGIN: 12pt 0in 5pt"><A =
name=3D_ftn30></A><A=20
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref30"><SPAN=20
style=3D"mso-bookmark: _ftn30"><SUP>[30]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn30"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn30"></SPAN> <I>E.g.</I>, <I>Space Master =
Int=92l, Inc. v.=20
<SPAN class=3DSpellE>Porta-Kamp</SPAN> Mfg. Co.</I>, 794 S.W.2d 944, =
946=9647 (Tex.=20
App.=97Houston [1st Dist.] 1990, no writ); <I>Alpine Gulf, Inc. v. =
Valentino</I>,=20
563 S.W.2d 358, 359=9660 (Tex. App.=97Houston [14th Dist.] 1978, writ =
<SPAN=20
class=3DSpellE>ref=92d</SPAN> <SPAN class=3DSpellE>n.r.e</SPAN>.); =
<I>Evans v.=20
Evans</I>, 186 S.W.2d 277, 279 (Tex. <SPAN class=3DSpellE>Civ</SPAN>. =
App.=97San=20
Antonio 1945, no writ).</P></DIV>
<DIV id=3Dftn31>
<P class=3DMsoFootnoteText style=3D"MARGIN: 12pt 0in 5pt"><A =
name=3D_ftn31></A><A=20
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref31"><SPAN=20
style=3D"mso-bookmark: _ftn31"><SUP>[31]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn31"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn31"></SPAN> <I>See supra</I> note =
4.</P></DIV>
<DIV id=3Dftn32>
<P class=3DMsoFootnoteText style=3D"MARGIN: 12pt 0in 5pt"><A =
name=3D_ftn32></A><A=20
title=3D""=20
href=3D"http://www.supreme.courts.state.tx.us/historical/2007/jun/050311.=
htm#_ftnref32"><SPAN=20
style=3D"mso-bookmark: _ftn32"><SUP>[32]</SUP></SPAN><SPAN=20
style=3D"mso-bookmark: _ftn32"></SPAN></A><SPAN=20
style=3D"mso-bookmark: _ftn32"></SPAN> <I>See K.D.F. v. Rex</I>, 878 =
S.W.2d 589,=20
595 (<st1:State w:st=3D"on">Tex.</st1:State> 1994) (noting that =
=93<st1:State=20
w:st=3D"on">Texas</st1:State> will extend comity to . . . a cooperative=20
jurisdiction =93so long as that law does not violate <st1:State=20
w:st=3D"on"><st1:place w:st=3D"on">Texas</st1:place></st1:State> public=20
policy=94).</P></DIV></DIV></DIV></BODY></HTML>
