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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 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 case of Bureau Veritas Commodities and Trade, Inc. v. Cotecna Inspection SA, No. 4:21-CV-00622, 2022 WL 912781 (S.D. Tex. 2022) dealt with the application of Federal Rule of Civil Procedure 12(b)(6) to claims under the Defend Trade Secrets Act (DTSA) and the Texas Uniform Trade Secrets Act (TUTSA).  Ultimately, the Southern District of Texas determined that the Plaintiff successfully plead a claim under DTSA and TUTSA.  In reaching this conclusion, the court determined that the Plaintiff was not required to plead detailed descriptions of its trade secret in a public complaint, especially without a court order in place. Continue Reading Southern District of Texas Explains Pleading Requirement for Trade Secrets Cases

In Six Dimensions, Inc. v. Perficient, Inc., No. 19-20505, 2020 WL 4557640 (5th Cir. Aug. 7, 2020), the Fifth Circuit explores the issue of what happens when an employer hires a new employee who is in possession of his former employer’s trade secrets.  In Six Dimensions, plaintiff Six Dimensions’ former employee left his Six Dimensions employment with a USB drive of Six Dimensions’ training materials.  The employee started work at competitor Perficient and brought with him the USB drive.  The evidence at trial demonstrated that there was discussion between the employee and Perficient about uploading the Six Dimensions’ training materials to Perficient’s server, but Perficient ultimately decided not to use the training materials.
Continue Reading Fifth Circuit Affirms Trial Court’s Judgment that Competitor Did Not Misappropriate Trade Secrets

Under Texas law, the one-satisfaction rule states that a plaintiff is entitled to only one recovery for any damages suffered because of a particular injury. In TMRJ Holdings, Inc. v. Inhance Techs., LLC, No. 01-16-00849-CV, 2018 WL 326421 (Tex. App.—Houston [1st Dist.] Jan. 9, 2018, no pet. h.), a misappropriation of trade secrets case, defendant argued that plaintiff’s judgment against it for a $4 million reasonable royalty and a permanent injunction violated the one satisfaction rule because the calculation of a reasonable royalty contemplated the future of the misappropriated technology.
Continue Reading Houston Court of Appeals Holds that an Award of a Reasonable Royalty and Permanent Injunction Does Not Violate the One-Satisfaction Rule

In my previous posts, I have discussed the varying standards for injunctive relief under the Texas Uniform Trade Secret Act (TUTSA). Some courts have required showings of irreparable harm. The Southern District of Texas, however, does not.
Continue Reading Southern District of Texas Does Not Require Irreparable Harm for Modification of Temporary Injunction

In my earlier posts, I explored the complicated definition of “misappropriation” under the Texas Uniform Trade Secret Act (TUTSA).  Litigants and courts often fail to understand all the ways a trade secret may be misappropriated.  In this post, I explore the last of the six alternative paths to liability under TUTSA:

vi. Disclosure or use…

In my earlier posts, I explored the complicated definition of “misappropriation” under the Texas Uniform Trade Secret Act (TUTSA).  Litigants and courts often fail to understand all the ways a trade secret may be misappropriated.  In this post, I explore the fifth of six alternative paths to liability under TUTSA:
Continue Reading The Six Paths to Liability Under the Texas Uniform Trade Secret Act – Part 5

In my earlier posts, I explored the complicated definition of “misappropriation” under the Texas Uniform Trade Secret Act (TUTSA).  Litigants and courts often fail to understand all the ways a trade secret may be misappropriated.  In this post, I explore the fourth of six alternative paths to liability under TUTSA:
Continue Reading The Six Paths to Liability Under the Texas Uniform Trade Secrets Act – Part 4

In my July 16 and Sept 25 posts, I explored the complicated definition of “misappropriation” under the Texas Uniform Trade Secret Act (TUTSA).  Litigants and courts often fail to understand all the ways a trade secret may be misappropriated.  In this post, I explore the third of six alternative paths to liability under TUTSA:
Continue Reading The Six Paths to Liability Under the Texas Uniform Trade Secrets Act – Part 3