Don't Mess With Noncompetes In Texas

Law360, New York (July 21, 2011, 2:08 PM EDT) -- Taking another step toward easier enforceability of noncompete agreements and away from its own decisions interpreting the Texas Covenants Not to Compete Act, the Texas Supreme Court ruled in Marsh USA Inc. v. Cook that a noncompete covenant contained in a stock option purchase plan was enforceable.

Prior to Marsh, Texas courts, relying upon the Supreme Court’s Light v. Centel Cellular Co. of Texas decision in the mid-1990s, required that noncompete agreements be ancillary to another agreement supported by consideration that “gives rise” to the same...
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