Last summer, I detailed the Dallas Court of Appeals’ decision in Marsh USA, Inc. v. Cook where the court held a noncompetition agreement supported only by stock-options as consideration was unenforceable. You can read that post here. Today, the Supreme Court of Texas announced that it would hear the appeal from the Dallas Court of Appeals. You can
Supreme Court of Texas
Texas Supreme Court Holds Employers May Be Held Liable for Unilateral Contracts Created with At-will Employees
The Texas Supreme Court held that unilateral contracts can be formed with at-will employees when employers make promises to employees and those employees perform based on that promise. In Vanegas v. American Energy Services, Inc. the Supreme Court was asked to decide the enforceability of an employer’s alleged promise to pay five percent of the proceeds of…
Supreme Court of Texas Compels Arbitration of Discrimination and Retaliation Claims
Texas courts strongly favor the resolution of disputes through arbitration. When parties to a dispute have signed an agreement to arbitrate covered disputes, Texas courts will rarely disregard that agreement. A recent per curiam opinion of the Supreme Court of Texas continues that trend by conditionally granting mandamus relief in a case alleging national origin discrimination…
Covenants Not to Compete that Contain Implicit Promises to Provide Confidential Information are Enforceable
On April 17, 2009, the Supreme Court of Texas continued its trend of finding ways to enforce covenants not to compete in the employment context. In Mann Frankfort Stein & Lipp Advisors, Inc. v. Fielding, the Court considered "whether a covenant not to compete in an at-will employment agreement is enforceable when the employee expressly…