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Sempra Energy Trading, LLC v. Holmes, No. 14-13-00206-CV, Tex Court of Appeals

Articles Discussing Case:

Let’s Shake On It: Texas Case Exemplifies the Perils of Adopting a Company-Wide Practice of Oral Agreements

Ogletree Deakins • August 19, 2014
An opinion out of the Fourteenth Court of Appeals demonstrates why employers need to be weary of developing a practice of oral agreements in regards to compensation upon which at-will employees may detrimentally rely. The court affirmed a judgment in excess of $1.1 million in favor of a former at-will executive employee against his former employer for breach of an oral contract regarding his compensation and severance. Specifically, the appellate court held the evidence was factually sufficient to support the jury’s findings that Richard Holmes and Sempra Energy Trading, LLC had verbally agreed to a retroactive salary increase, to the payment of a bonus, and to the payment of severance. Sempra Energy Trading, LLC v. Holmes, No. 14-13-00206-CV, Tex Court of Appeals for the Fourteenth District (July 24, 2014).

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