Texas High Court Enforces Post-Merger Bonuses

Law360, New York (December 22, 2009, 5:15 PM EST) -- Reversing a lower court's decision, the Texas Supreme Court has ruled that American Energy Services is bound by a promise to pay its employees 5 percent of the proceeds from a merger or sale of the company if they were still employed at the firm.

Justice Paul W. Green of the Texas Supreme Court delivered the opinion of the court on Friday, rejecting the employer's argument that the promise was illusory because the employees could have been fired at any time. The trial court and appeals...
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