Client Poaching

Houston Business Attorneys to Stop Client Poaching

How to Stop Ex-Employees From Stealing Your Clients

Are you watching in alarm as a departing employee, a contractor, or competitor raids your client list? Texas law protects valuable trade secrets, including client lists, from misuse and misappropriation. These protections can give you legal grounds to defend your client lists from exploitation by former employees or competitors.

According to the Texas Uniform Trade Secrets Act (TUTSA), a trade secret is information that has economic value because it is not generally known, and which a company has made reasonable efforts to keep secret. If your business has made reasonable efforts to protect your client lists, you can take legal action to stop former employees or competitors from going after your valuable client relationships.

At Hendershot Cowart P.C. we believe in providing our clients with legal strategies backed by over 100 years of combined experience and responsive representation when they need it most. Our team will quickly get up to speed on your matter and help you respond with swift, aggressive action to stop client poaching.


Take quick action to stop former employees from stealing your clients. Contact our Houston attorneys at (713) 909-7323 for a consultation.


On This Page:

What Is Client Poaching?

When an employee leaves the company – either to join a competitor or to start a competing business – they may try to encourage clients to join them at their new company. A former employee may also maliciously share protected client information with a competitor who then directly solicits your customers or clients.

This is called “client poaching” and endangers your proprietary information, profits, and client relationships.

Examples of client poaching can include:

  • An employee intercepting calls from potential clients and soliciting them to do business separately.
  • A vendor, supplier, or contractor soliciting mutual clients to provide competing products or services.
  • An employee who leaves to start a competing operation and asks clients to follow him or her.

What may NOT be an example of client poaching?

  • If the client list is easily ascertained through public sources, such as an internet search.
  • If the former employee advertises in the local newspaper or social media and your clients respond.
  • If a client follows your employee to a competing operation, but was not directly or actively solicited.

Is Client Poaching Illegal?

Client poaching is not outright illegal, but it can violate certain business laws, such as the Texas Uniform Trade Secrets Act, and breach the terms of existing agreements, such as a non-compete or non-solicitation provision in the employment contract.

Can I Sue a Competitor for Poaching My Clients?

Yes. TUTSA allows businesses to take legal action when misappropriation occurs – or even if it has been threatened – provided that:

  • Improper means were used to acquire the trade secret; and
  • A trade secret was used or disclosed without consent.

Typically, a trade secret misappropriation case will consist of three general phases:

  • Filing of a lawsuit and application for a temporary restraining order;
  • Temporary injunction that stops the defendant from a specific act; and
  • Litigation for the recovery of damages.

In addition to injunctive relief, businesses are also entitled to the recovery of any financial damages resulting from misappropriation. This includes actual losses and unjust enrichment, or royalties for the unauthorized use or disclosure of a trade secret. In cases where misappropriation was willful and malicious, exemplary damages may also be awarded against the defendant.

How Do I Prevent Competitors from Poaching My Clients?

The best way to prevent client poaching is to take reasonable measures to protect the secrecy of your client list. This will maintain its protection under Texas law.

What are reasonable measures to maintain the secrecy of your client list?

  1. Label client information as “proprietary and confidential”
  2. Limit access to client information on a “need-to-know basis”
  3. Employ physical and digital security, e.g., stored in locked cabinets or password-protected
  4. Ask employees, customers, independent contractors, and vendors with access to confidential client lists and information to sign a confidentiality or non-disclosure agreement (NDA).
  5. Use non-compete or non-solicitation agreements

Review more measures you can take in our blog article “Protecting Trade Secrets In Texas: How Do You Identify And Secure A Trade Secret?


How Do I Defend against a Client Poaching Lawsuit?

The best way to defend against claims of client poaching is to demonstrate that you did not solicit clients improperly, or that you obtained the client list through public means.

It gets trickier if you are bound by a non-solicitation, non-compete agreement, or confidentiality agreement. However, these agreements are not always enforceable. If a non-compete or non-solicitation agreement is too broad or does not protect a legitimate business interest, Texas courts may revise the scope of the agreement or decline to enforce it altogether.

Our law firm has been reviewing, drafting, and enforcing non-compete and non-solicitation agreements since 1987. We can review the circumstances of your case and any underlying agreements to determine their enforceability and devise a strategy to achieve the possible outcome for you.

Entrust Your Client Poaching Case to Experienced Business Attorneys

Client lists are a valuable business asset. If a competitor or former employee is blatantly stealing your clients, rely on the help and counsel of experienced business attorneys at Hendershot Cowart P.C.

Our legal team has over 100 years of combined experience to put toward your case. We have a thorough understanding of state and federal law that govern proprietary trade secrets such as client lists, and we will work tirelessly to protect your interests. When you need dependable legal counsel backed by experience, choose Hendershot Cowart P.C.


Contact our Houston client poaching attorneys today for more information.


Why Choose Our Team? Unwavering Commitment to the Success of our Clients
  • We Shoulder the Legal Burden.™
    And let you get back to business.
  • We Want to Be Your Law Firm for Life.
    We take a vested interest in our clients' success – from start to finish.
  • We Believe in Prompt, Personal Attention.
    As a boutique law firm, we unite real experience with personal attention.
  • We Serve Clients Throughout Texas and the Nation.
    We handle matters from the Red River to the Rio Grande and beyond.
  • In Business Since 1987.
    Let us put the full force of our 100+ years of combined experience to work for you.

What Our Clients Say

  • “I cannot say enough good things about my Lawyer, Mr. David Augustus. His calm, laser-like knowledge of business law allowed me to prevail and teach a few others during the short negotiations. Having the full backing of his law firm also helped greatly.” - L.A.
  • “Excellent experience working with Ray to settle our partnership dissolution. He was consistently available and steadfast in his guidance. Highly recommend this firm.” - S.H.
  • “I retained Hendershot Cowart last year. Though an obvious small case for the firm, it was traumatic and very personal for me. Ashley Arnett guided me through the process, never once making me feel that my case wasn’t any less important as any other.” - S.L.

We Are On Your Side

Schedule Your Initial Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please enter a message.