Tracking Noncompete Enforcement In Texas

Law360, New York (July 6, 2011, 5:56 PM EDT) -- On June 24, 2011, The Texas Supreme Court issued its long-awaited decision in Marsh USA Inc. and Marsh & McLennan Cos. v. Rex Cook regarding the standards for enforcement of noncompete agreements under the Texas Business and Commerce Code. In upholding noncompete covenants that were part of a stock option agreement, the court at least partially overruled previous Texas Supreme Court authority.

As a practical matter, Cook should make noncompete agreements significantly easier to enforce in Texas. Perhaps more importantly, the case changes the way the...
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