The Texas Supreme Court has issued an opinion this morning holding that noncompetition agreements supported by stock options and good will are not unenforceable as a matter of law. I previewed this case here. As I have time to digest the majority, concurring and dissenting opinions, I’ll provide more thoughts on this case. You
nonsolicitation
Dallas Court of Appeals Holds that Award of Stock Options to Employee May Not Be Sufficient to Support Covenant not to Compete
By Russell Cawyer on
Posted in Noncompetes and Restrictive Covenants
In a recent opinion of the Dallas Court of Appeals, the Court held that an insurance brokerage and consulting service firm’s noncompetition and nonsolicitation agreement obtained in return for an award of stock options to an employee was unenforceable under Texas law. (See opinion here).
Rex Cook was a long-term employee of Marsh USA, Inc. Prior…