Texas Supreme Court

Marsh USA Inc., and Marsh & McLennan Companies, Inc., Petitioners v. Rex Cook, Respondent

December 16, 20112011 Tex. LEXIS 930

Summary

The Texas Supreme Court held that the non‑solicitation covenant signed by Rex Cook in exchange for stock options is enforceable because the consideration is reasonably related to protecting Marsh's goodwill, satisfying the statutory ancillary requirement. The Court reversed the appellate judgment and remanded for the trial court to assess the covenant's reasonableness. Justice Green dissented, arguing that the decision improperly departs from Light's "give rise" rule.