Search results for: preemption

For years, it was not uncommon for misappropriation of trade secrets claims to be accompanied by a variety of other common law causes of action such as breach of fiduciary, fraud, and conspiracy. The Texas Uniform Trade Secrets Act (TUTSA), however, states that it “displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret.” Generally, this provision means that all common law or non-contractual claims based on “the alleged improper taking of trade secret and confidential business information” are preempted. Some cases, though, hold that TUTSA “does not preempt causes of action stemming from the misappropriation of confidential information that is not a trade secret.” The Eastern District of Texas explored this split in the case law in BKL Holdings, Inc. v. Globe Life Inc., No. 4:22-CV-00170, 2023 WL 2432012 (E.D. Tex. Mar. 9, 2023).

Continue Reading Eastern District of Texas Explores TUTSA’s Preemption Provision

The case of Forum Energy Technologies, Inc. v. Jason Oil & Gas Equipment, LLC, No. H-20-3768, 2022 WL 1103078 (S.D. Tex. April 13, 2022) considered whether the Texas Uniform Trade Secrets Act (TUTSA) preempted Forum Energy’s claims for unfair competition, conspiracy, and/or tortious interference with prospective business relations.  Ultimately, the court determined that only Forum Energy’s tortious interference with prospective business relations was preempted.  In reaching this conclusion, the court determined that the underlying facts of Forum Energy’s tortious interference with prospective business relations claim was based on the same underlying facts as its TUTSA claim.  However, in determining that TUTSA did not preempt Forum Energy’s other claims, the court relied on the fact that Forum Energy alleged that Jason Oil misappropriated confidential information and not trade secret information.

Continue Reading Southern District of Texas Addresses the Issue of Preemption Under TUTSA

 

The Texas Uniform Trade Secret Act (TUTSA) displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret. Recently, the Corpus Christi Court of Appeals issued an opinion in Super Star International interpreting this provision. The Western District of Texas expanded on this opinion in Embarcadero Technologies, Inc. v. Redgate Software, Inc., No. 1:17-CV-444-RP, 2018 WL 315753 (W.D. Tex. Jan. 5, 2018). Continue Reading Western District of Texas Issues Opinion Interpreting TUTSA Preemption Provision

The Texas Uniform Trade Secret Act (TUTSA) displaces conflicting tort, restitutionary, and other law of this state providing civil remedies for misappropriation of a trade secret. In Super Starr International, LLC v. Fresh Tex Produce, LLC, 531 S.W.3d 829 (Tex. App.—Corpus Christi July 20, 2017, no pet.), the Corpus Christi Court of Appeals offered perhaps the first interpretation of the section. Continue Reading Corpus Christi Court Issues Opinion Interpreting Preemption Provision of the Texas Uniform Trade Secret Act

The case of Vest Safety Medical Services, LLC v. Arbor Environmental, LLC, No. 4:20-CV-0812, 2022 WL 2812195 (S.D. Tex. June 17, 2022) dealt with two issues involving trade secrets.  The first issue considered whether the Texas Uniform Trade Secrets Act (TUTSA) preempted Vest’s civil conspiracy claim.  Ultimately, the court concluded that TUTSA did preempt Vest’s civil conspiracy claim.  In reaching this conclusion, the court relied on the fact that this claim did not rely on facts that were distinct from Vest’s TUTSA Claim.  In the second issue, the court considered whether Vest provided enough evidence for its misappropriation of a trade secret claims to survive Arbor’s summary judgment. Ultimately, the court concluded that there was a genuine issue of material fact as to all elements of Vest’s misappropriation of a trade secret claims. 

Continue Reading Southern District of Texas Denies Motion for Summary Judgment on Trade Secrets Claim

The case of EthosEnergy Field Services, LLC v. Axis Mechanical Group, Inc., H-21-3954, 2022 WL 2707734 (S.D. Tex. June 10, 2022) considered whether Ethos pled with sufficient detail its Defend Trade Secrets Act (DTSA) and Texas Uniform Trade Secrets Act (TUTSA) claims.  Additionally, the court considered whether TUTSA preempted Ethos’s unfair competition by misappropriation claim. Ultimately, the court determined that Ethos sufficiently pled its DTSA and TUTSA claims.  However, the court also determined that TUTSA preempted Ethos’s unfair competition by misappropriation claim. 

Continue Reading Southern District of Texas Explores Trade Secrets Claims in the 12(b)(6) Context

In the case of Scientific Machine & Welding, Inc. v. Rose, No. 03-20-00564-CV, 2022 WL 850409 (Tex. App.—Austin Mar. 23, 2022, no pet.), the Texas Court of Appeals determined (1) if the steps taken by the plaintiff amounted to a “reasonable measure” of keeping the relative information a trade secret, (2) whether Scientific came forth with legally sufficient evidence to support claims of breach of fiduciary duty and breach of contract, (3), whether Scientific’s claim of a “breach of implied contract of confidentiality” existed under Texas Law.   

Continue Reading Texas Court of Appeal Evaluates What Actions Constitute “Reasonable Measures” to Keep a Trade Secret

Title Source, Inc. v. HouseCanary, Inc., No. 04-19-00044-CV, 2020 WL 5027667 (Tex. App.—San Antonio Aug. 26, 2020, pet. granted) is a new case addressing the jury charge in Texas Uniform Trade Secrets Act (TUTSA) cases.  In a previous post, I discussed the Casteel problem in the misappropriation instructions that resulted in reversal of this multi-million dollar judgment and the court’s evaluation of the evidence supporting the existence of the trade secrets. (For complete discussion of the facts, please see this previous blog post.  Since I wrote that post, the Court withdrew its earlier opinion and held, in addition to its previous holdings, that HouseCanary must also retry its breach of non-disclosure agreement claims if it elects on remand to retry its TUTSA claims because the claims were not separable from each other without unfairness to the parties.) Continue Reading Even More Lessons from Title Source v. HouseCanary

Most cases that have evaluated the Texas Citizens Participation Act (TCPA) have focused on whether the TCPA applied to the claims.  This isn’t the issue in Neurodiagnostic Consultants, LLC v. v. Nallia, No. 03-18-00609-CV, 2019 WL 4231232 (Tex. App.—Austin Sept. 6, 2019, no pet. h.).  Instead, Nalia focuses on whether the non-movant offered sufficient proof to defeat a TCPA motion to dismiss. Continue Reading Austin Court of Appeals Issues Opinion on the TCPA and Conspiracy

Almost every trade secrets case involves some sort of request for injunctive relief prohibiting the alleged infringer from using the trade secrets at issue.  If the court grants the request for injunctive relief and you are the party accused of misappropriating the trade secret, you want to have some specificity in the court’s order so you can know the specific trade secrets you a prohibiting from using. Continue Reading The Corpus Christi Court Issues Opinion on the Specificity of Injunctive Orders in Trade Secrets Cases