Cameron International Corporation v. Jeremy Guillory
445 S.W.3d 840
Tex. App.2014Background
- This is an interlocutory appeal from a trial court's temporary injunction in an employment case involving a covenant not to compete.
- Cameron International Corporation (Delaware corp) sued former employee Jeremy Guillory after he left to join a competitor and allegedly breached confidentiality and noncompetition provisions.
- Guillory helped establish Cameron’s Fort Collins, Colorado office; Cameron awarded him restricted stock with a noncompete and other restrictive covenants.
- The RSU agreement contained a Delaware governing-law clause and an Electronic Delivery/Acceptance provision for online acceptance of documents.
- The trial court enforced Cameron's confidentiality agreement but declined to enforce the RSU noncompete; Cameron sought to enjoin Guillory from competing for one year.
- The court ultimately held Delaware law applies to the noncompete, found a probable right to relief, and remanded to grant temporary relief enjoining Guillory.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What law governs the RSU noncompete? | Cameron: Delaware law applies per contract's choice-of-law. | Guillory: trial court cannot decide choice-of-law at this stage; waiver issue and premature for temp injunction. | Delaware law applies; contract governs formation/enforceability of the noncompete. |
| Is Cameron entitled to temporary injunctive relief on the noncompete? | Cameron showed probable right to relief under Delaware law. | Guillory argued no probable right pending merits and potential law conflicts at temp stage. | Yes; trial court erred in denying temporary relief enforcing the noncompete. |
| Was Guillory's electronic acceptance of the RSU agreement valid and binding? | Guillory accepted online; documents were provided electronically under Delaware law. | Guillory did not carefully read the agreement; questions whether mutual assent existed. | Mutual assent shown; failure to read does not void contract; enforceable noncompete supported. |
| Does Texas have a greater interest than Delaware in applying the RSU noncompete? | Delaware law should govern as chosen by contract. | Texas has priority due to corporate nexus and local policy around covenants. | Texas has no materially greater interest; Delaware law applies to the noncompete. |
Key Cases Cited
- DeSantis v. Wackenhut Corp., 793 S.W.2d 670 (Tex. 1990) (recognizes public policy considerations in contract enforcement and choice-of-law issues)
- Compaq Computer Corp. v. LaPray, 135 S.W.3d 657 (Tex. 2004) (class-certification and choice-of-law analysis reaffirmed importance of substantive law differences)
- Southwest Refining Co. v. Bernal, 22 S.W.3d 425 (Tex. 2000) (prematurity of legal determinations in injunction context requires thorough law review)
- In re Olshan Found. Repair Co., LLC, 328 S.W.3d 883 (Tex. 2010) (abuse of discretion when applying improper governing law to injunctive relief)
- In re Prudential Ins. Co., 148 S.W.3d 124 (Tex. 2000) (statements on due consideration of law in injunction context and standards)
