Cameron International Corporation v. Jeremy Guillory

445 S.W.3d 840, 39 I.E.R. Cas. (BNA) 210, 2014 Tex. App. LEXIS 10767, 2014 WL 4776274
CourtCourt of Appeals of Texas
DecidedSeptember 25, 2014
Docket01-14-00452-CV
StatusPublished
Cited by11 cases

This text of 445 S.W.3d 840 (Cameron International Corporation v. Jeremy Guillory) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cameron International Corporation v. Jeremy Guillory, 445 S.W.3d 840, 39 I.E.R. Cas. (BNA) 210, 2014 Tex. App. LEXIS 10767, 2014 WL 4776274 (Tex. Ct. App. 2014).

Opinion

OPINION

JANE BLAND, Justice.

This is an interlocutory appeal from the trial court’s temporary injunction order, entered in an employment suit involving a covenant not to compete. Cameron International Corporation, a Delaware corporation headquartered in Houston, sues one of its former managerial employees, Jeremy Guillory.

Cameron sells oilfield service equipment. Guillory founded and grew Cameron’s office in Colorado. Guillory and several other employees then left Cameron to found an entity that competed against Cameron. Cameron alleges that Guillory, in particular, breached noncompetition and confidentiality provisions that he agreed to abide by in consideration for a distribution of restricted stock in Cameron.

The trial court granted temporary in-junctive relief, enforcing the confidentiality agreement, but it denied enforcement relief on Cameron’s noncompete claim. Cameron appeals, contending that the trial court erred in refusing to enjoin Guillory from competing against it for the one-year duration of the covenant not to compete. We reverse.

Background

Cameron is in the oilfield services business. It supplies flow production equipment, products, and services to oil, gas, and processing industries. It does business in more than 100 countries, and domestically, in most states where significant oil and gas reserves are located. Guillory began his employment with Cameron in Louisiana in 2005. That August, he signed a confidentiality agreement, in which he agreed to refrain from disclosing Cameron’s confidential trade secrets, marketing, and sales data. Guillory was a successful Cameron employee. As he worked his way up in the company, his promotions took him to Wyoming and, in March 2011, to Colorado. There, he established Cameron’s new office in Fort Collins, giving it a foothold in the development of the Niob-rara shale — a potentially rich source of oil and natural gas extractable through hydraulic fracturing. Under Guillory’s man *842 agement, the Fort Collins office grew rapidly; after three years, Cameron employed more than 80 people there.

In recognition of Guillory’s exceptional performance, Cameron awarded Guillory shares of its restricted stock. In a January 2013 letter, Cameron informed Guillo-ry that he had been awarded 283 restricted stock units through its Restricted Stock Unit Program. A single-page enclosure, entitled “2013 Cameron RSU Program FAQ,” accompanied the letter. Among other questions, it addressed:

“What happens if I leave Cameron?” “There are different outcomes to how your RSUs will be treated upon different types of terminations (voluntary, retirement, etc.) Please review your RSU grant agreement carefully to better understand the specific termination provisions.”

The FAQ enclosure also explained that, as a first-time RSU award recipient, Guillory would “receive an e-mail from E-Trade by the end of January that contains an authentication code and instructions on how to access your account online.”

The e-mail Guillory received instructed him that “[t]he Notice of Grant of Award and RSU Agreement ... should be accepted online at wim.etrade.com as soon as possible.” Among the steps included in the instructions were the following:

To accept your new award, click on Requires Acceptance under the Status column.
a. You are required to open and review each document before you can accept the award. You will not be able to accept the award without opening each document.
b. To accept your award, enter your Login Password and click on the Accept button. A Confirmation of Acceptance message will appear.
c.Copies of the award documents and Confirmation of Acceptance page may then be printed for your file.

The website activity history shows that Guillory opened the RSU agreement and answered a prompt stating that he read and understood the agreement. An archived screenshot of the page containing the Accept button contained:

a notice above the button entitled “Message From Your Company,” explaining: “By acceptance of this Award you agree to be bound by the terms and conditions of the [RSU] Agreement.”
A direction to review certain grant documents, and
Appearing immediately above the Accept button, a statement declaring “I acknowledge that I have reviewed and understood the following grant document(s),” followed by a list of download links for each document.

The RSU agreement included a noncom-pete provision, which provides:

Covenant not to Compete, Solicit or Disclose Confidential Information. The Participant acknowledges that the Participant is in possession of and has access to confidential information, including material relating to the business products or services of the Company or Employer and that he or she will continue to have such possession and access during employment by the Company or Employer. Participant acknowledges that the Company’s business, products and services are highly specialized and that it is essential that they be protected, and, accordingly, the Participant agrees that as partial consideration for the Award granted herein that should the participant engage in any “Detrimental Activity” as defined below, at any time during his or her employment or during a period of one year following *843 his or her termination the Company or Employer shall be entitled to: (i) recover from the Participant the value of any portion of the Award that has been paid; (ii) seek injunctive relief against the Participant; (iii) recover all damages, court costs, and attorneys’ fees incurred by the Company or Employer in enforcing the provisions of this Award, and (iv) set-off any such sums to which the Company or Employer is entitled hereunder against any sum which may be owed the Participant by the Company or Employer.

(Emphasis and underlining in original). The provision defines “Detrimental Activity” as including:

• “engaging directly or indirectly in any business, which is or becomes competitive with [Cameron]”;
■ “soliciting, interfering, inducing, or attempting to cause any employee of [Cameron] to leave his or her employment”; and
• “directly or indirectly soliciting the trade or business of any customer of [Cameron].”

The RSU agreement also contains a “Governing Law” provision declaring that Delaware law governs questions concerning the validity, construction and effect of the agreement, “without reference to principles of conflicts of laws.”

Pertinent to this appeal is another provision, entitled “Electronic Delivery/Acceptance,” which states:

The Company may, in its sole discretion, decide to deliver any documents related to the RSUs by electronic means.

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445 S.W.3d 840, 39 I.E.R. Cas. (BNA) 210, 2014 Tex. App. LEXIS 10767, 2014 WL 4776274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cameron-international-corporation-v-jeremy-guillory-texapp-2014.