In my earlier posts, I discussed the developing standards for injunctive relief under the Texas Uniform Trade Secret Act (TUTSA). Under the Northern District of Texas’s analysis, proof of irreparable harm is required but that irreparable harm can be established with a showing that the “defendant possesses the trade secrets and is in a position to use them.”
The Corpus Christi Court of Appeals, however, appears to continue to require the traditional showing of irreparable harm—i.e., the injury party cannot be adequately compensated in damages or the damage cannot be measured by any certain pecuniary standard. In Midstate Environmental Services, L.P. v. Atkinson, No. 13-17-00190-CV, 2017 WL 6379796 (Tex. App.—Corpus Christi, Dec. 14, 2017, no pet. h.), the Court denied plaintiff’s requested temporary injunction because plaintiff’s representatives testified that its damages could be determined by calculating the proceeds that it would have received from each customer that switched to the alleged misappropriator. It should be noted, though, that Midstate never addresses the issue of the standard of injunctive relief under TUTSA and is primarily analyzed as a breach of contract case. Therefore, this case may not set forth the standard for all TUTSA cases before the Corpus Christi court.