Texas Appeals Court Upholds Insurer's Noncompete

Law360, New York (August 25, 2009, 5:58 PM EDT) -- Giving a boost to a unit of Arthur J. Gallagher & Co., a Texas appeals court has overturned a ruling that the insurance services firm’s noncompete covenant is not enforceable against a former insurance broker who jumped to a direct competitor and took her service team with her.

In a 2-1 decision Aug. 21 Texas' First Court of Appeals determined that Gallagher Healthcare Insurance Services’ noncompete prohibiting its former broker from working with her GHIS clients for a two-year period was enforceable and reasonable.

According to...
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