2000px-Texas_flag_map_svgProof of damages in restrictive covenant matters can be complicated.  In Rhymes v. Filter Resources, Inc., the Ninth Court of Appeals in Beaumont, Texas reminded parties that revenue and sales are not the same as lost profits, and expenses must be considered when developing a damage model.

George Rhymes (“Rhymes”) was employed by Filter Resources

Calculating lost profits for breach of a non-compete agreement can be a challenging task, and different courts have adopted different approaches. In Preferred Systems Solutions v. GP Consulting, Nos. 111906, 11907 (Sept. 14, 2012), the Virginia high court affirmed a verdict of $172,395 in compensatory damages in favor of Preferred Systems Solutions (“PSS”), a government