Verified Denial Required to Dispute Existence of Contract

The failure to file a verified denial as to the existence of covenant not to compete, according to the Dallas Court of Appeals, prevents a party from later challenging the existence of that contract. In Greenville Automatic Gas Company v. Automatic Propane Gas and Supply, LLC, et. al.; Cause No. 05-13-01405-CV (Tex. App.—Dallas June 9, 2015), the Court held that the terms of an employment contract were settled by the absence of a verified denial of those terms. Defendant employed Plaintiff for approximately fifteen years as a route driver, delivering propane to Defendant’s customers. Defendant alleged Plaintiff signed a nine-page employment agreement that contained a covenant not to compete. After Plaintiff accepted a position with a competitor, Plaintiff filed a declaratory judgment action against Defendant seeking to establish his rights under the employment agreement. Plaintiff argued that the non-compete provisions of the employment agreement were unenforceable. Defendant filed a response to the petition as well as a counterclaim, attaching a copy of the employment agreement to its answer. Plaintiff did not timely