In June 2020, the San Antonio Court of Appeals issued its opinion in Title Source, Inc. v. HouseCanary, Inc., No. 04-19-00044-CV, 2020 WL 2858866 (Tex. App.–San Antonio June 3, 2020, no pet. h.), reversing and remanding for new trial a $740 million judgment in favor of HouseCanary on its Texas Uniform Trade Secrets Act (TUTSA) and fraud claims against Title Source.
Continue Reading Crafting The Jury Charge in Trade Secrets Cases — Lessons from Title Source v. HouseCanary

In 2018, the First Court of Appeals issued its opinion in Gaskamp v. WSP USA, Inc., No. 01-18-00079-CV, 2018 WL 6695810 (Tex. App.—Houston [1st Dist.] Dec. 20, 2018, no pet.), which involves the application of Texas’s anti-SLAPP statute the Texas Citizen Participation Act (TCPA) to a trade secrets case.  The Court’s opinion determined that the TCPA applied to such claims and reversed the trial court’s decision in part.  Recently, though, the Court reconsidered its opinion en banc and determined that the TCPA did not apply to the claims.  Gaskamp v. WSP USA, Inc., No. 01-18-00079-CV, 2020 WL 826729 (Tex. App.–Houston [1st Dist.] Feb. 20, 2020, no pet. h.).
Continue Reading Houston’s First Court of Appeals Reverses Itself on the Application of the TCPA to Trade Secret Claims

Beginning with the Texas Supreme Court decisions in Lippincott v. Whisenhunt, 462 S.W.3d 507 (Tex. 2015) and ExxonMobil Pipeline Co. v. Coleman, 512 S.W.3d 895 (Tex. 2017) and continuing with the Austin Court of Appeals 2017 decision in Elite Auto Body LLC, d/b/a Precision Auto Body v. Autocraft Bodywerks, Inc., Texas courts had taken the position that Texas’s anti-SLAAP statute the Texas Citizens Participation Act (TCPA) had almost unlimited application to commercial litigation cases such as those involving misappropriation of trade secrets. Beginning in 2019, though, certain courts of appeal have begun to reject or limit those holdings.
Continue Reading Dallas Court of Appeals Continues its Efforts to Restrict the Application of the TCPA

In 2019, the Dallas Court of Appeals issued a decision in Goldberg v. EMR (USA Holdings) Inc., a complex opinion in evaluating the application of the previous version of the Texas Citizens Participation Act (TCPA) to trade secrets and other claims.  In 2020, the Court reissued that opinion with a more streamlined analysis.
Continue Reading Dallas Court of Appeals Issues Simplified Opinion in Goldberg Case

Under trade secrets law, the inevitable disclosure doctrine is the idea that a defendant’s new employment will lead to the inevitable disclosure of a former employer’s trade secrets.  Texas courts have issued mixed holdings on the subject.  After the Texas Uniform Trade Secrets Act (TUTSA) was enacted in 2013, some speculated that its language permitting injunctive relief for “threatened misappropriation” was an implicit adoption of the inevitable disclosure doctrine.  In a recent decision, the Dallas Court of Appeals seemed to reject that speculation.
Continue Reading Dallas Court of Appeals Holds that the Inevitable Disclosure Doctrine Cannot Be Used to Create a Fact Issue on Misappropriation of Trade Secrets

Through most of 2019, the Dallas Court of Appeals has refused to apply the Texas Citizens Participation Act (TCPA) to commercial litigation claims.  Goldberg v. EMR (USA Holdings) Inc., No. 05-18-00261-CV, 2019 WL 3955771 (Tex. App.–Dallas Aug. 22, 2019, no pet. h.) reverses that trend in part.  Goldberg is too complex of a case to summarize here.  Therefore, I’ll just hit the highlights:
Continue Reading Dallas Court of Appeals Explores the TCPA in Complex New Decision

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

Over the past several months, I’ve been tracking the explosion of cases where a defendant uses Texas’s anti-SLAAP statute the Texas Citizens Participation Act (TCPA) as a defense to a misappropriation of trade secrets claim under the Texas Uniform Trade Secrets Act (TUTSA).  The Beaumont Court of Appeals case in Callison v. C&C Pers., LLC, No. 09-19-00014-CV, 2019 WL 3022548(Tex. App.–Beaumont July 11, 2019, no pet. h.) is another one of those cases.  Callison involves the familiar fact pattern of an employee accused of acquiring her former employee’s trade secrets and then using those trade secrets to solicit her former customers.  In defense to those claims, the employee filed a motion to dismiss under the TCPA.  The trial court denied employee’s motion by operation of law.  The Beaumont Court of Appeals affirmed.
Continue Reading Another Trade Secret Case Involving the TCPA

As previously discussed, the current version of the Texas Citizens Participation Act (TCPA) can apply in a variety of commercial litigation cases.  One of the exceptions to application of the TCPA, though, is the commercial speech exemption.  Under the commercial speech exemption, the TCPA does not apply if (1) the defendant was primarily engaged in the business of selling or leasing goods, (2) the defendant made the statement or engaged in the conduct on which the claim is based in the defendant’s capacity as a seller or lessor of those goods or services, (3) the statement or conduct at issue arose out of a commercial transaction involving the kind of good or services the defendant provides, and (4) the intended audience of the statement or conduct were actual or potential customers of the defendant for the kind of goods or services the defendant provides.

The new Dallas Court of Appeals case of Clean Energy and Clean Energy Fuels Corp. v. Trillium Transportation Fuels, LLC, No. 05-18-01228, (Tex. App.—Dallas July 9, 2019, no pet. h.) interprets the third prong of this exemption.
Continue Reading Dallas Court of Appeals Issues Opinion Interpreting the Commercial Speech Exception of the TCPA