Noncompete News: Texas Values Clash in Noncompete Case High Court Agrees to Hear


On April 9, the Texas Supreme Court granted review in Marsh USA Inc, et al. v. Cook, a case that will forever impact Texas law on covenants not to compete. The issue, when you cut to the meat of the coconut: Can money serve as consideration for an employee's agreement not to compete after leaving employment? Here is what occurred, according to the opinion by the 5th Court of Appeals, which was hearing the case on appeal from partial summary judgment: Rex Cook worked for Marsh USA Inc. in a high-level position and was awarded stock options. Before exercising them, he had to sign off on a noncompete. He signed, he exercised, he left. Marsh sued him, seeking enforcement of the noncompete.

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