Antony McGregor Dey v. Seilevel Partners, LP

CourtCourt of Appeals of Texas
DecidedMarch 23, 2022
Docket07-21-00244-CV
StatusPublished

This text of Antony McGregor Dey v. Seilevel Partners, LP (Antony McGregor Dey v. Seilevel Partners, LP) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Antony McGregor Dey v. Seilevel Partners, LP, (Tex. Ct. App. 2022).

Opinion

In The Court of Appeals Seventh District of Texas at Amarillo ________________________

No. 07-21-00244-CV ________________________

ANTONY MCGREGOR DEY, APPELLANT

V.

SEILEVEL PARTNERS, LP, APPELLEE

On Appeal from the 53rd District Court Travis County, Texas Trial Court No. D-1-GN-21-002722; Honorable Amy Clark Meachum, Presiding

March 23, 2022

MEMORANDUM OPINION Before QUINN, C.J., and PIRTLE and PARKER, JJ.

Appellant, Antony McGregor Dey, was employed by Appellee, Seilevel Partners,

LP and was terminated on January 27, 2021. At the time of his termination, Dey

accepted a severance package from Seilevel in exchange for certain post-employment

promises contained in an Agreement and General Release. After his termination, Dey

engaged in conduct in violation of that agreement which resulted in the underlying suit being filed by Seilevel for breach of contract, breach of fiduciary duty, and violations of

the Texas Uniform Trade Secrets Act. 1 The same day suit was filed, Dey and Seilevel

approved entry of an Agreed Temporary Restraining Order. Critical to this appeal, the

temporary restraining order enjoined Dey from “accessing, using, or disclosing any

Seilevel Information for any purpose,” and it further enjoined him from “directly or

indirectly soliciting or contacting [seven named] Seilevel customers . . . .” Following a

period of discovery, Seilevel filed its amended petition seeking temporary injunctive

relief. After notice and hearing, the trial court granted a temporary injunction enjoining

Dey from continuing to use trade secrets as well as confidential and proprietary

information. The temporary injunction resulted in this accelerated appeal. 2 Dey presents

nine issues challenging the trial court’s Order Granting Temporary Injunction as follows:

1. The trial court abused its discretion in ordering direct access to Dey’s personal laptop for forensic examination.

2. Does the Texas Supreme Court’s decision in In re Weekley, 295 S.W.3d 309, 321 (Tex. 2009), 3 which limited direct access to a litigant’s electronic devices, apply to a direct access order in a temporary injunction?

3. Even though In re Weekley did not address injunctions, should the same principles apply to injunctions?

4. Did the trial court abuse its discretion in entering a temporary injunction ordering direct access to Dey’s personal laptop?

1 TEX. CIV. PRAC. & REM. CODE ANN. §§ 134A.001 - .008. The Legislature enacted TUTSA in 2013 to protect misappropriation of trade secrets. Section 134A.006(a) provides in part that “a court shall preserve the secrecy of an alleged trade secret by reasonable means. There is a presumption in favor of granting protective orders to preserve the secrecy of trade secrets.” § 134A.006(a). 2 Originally appealed to the Third Court of Appeals, sitting in Austin, this appeal was transferred to this court by the Texas Supreme Court pursuant to its docket equalization efforts. TEX. GOV’T CODE ANN. § 73.001 (West 2013). Should a conflict exist between precedent of the Third Court of Appeals and this court on any relevant issue, this appeal will be decided in accordance with the precedent of the transferor court. TEX. R. APP. P. 41.3. 3 The Supreme Court set forth the proper procedure for searching another party’s electronic storage devices under appropriate discovery rules. In re Weekley, 295 S.W.3d at 322.

2 5. Does the temporary injunction violate the specificity requirements of Rule 683 of the Texas Rules of Civil Procedure?

6. Did the trial court abuse its discretion in issuing a temporary injunction that was ambiguous on the non-solicitation portion of the injunction?

7. Did the trial court abuse its discretion in enjoining Dey’s use of Seilevel’s confidential information where there was no evidence of any imminent threat of his using such information?

8. Did the trial court abuse its discretion by including a restriction on solicitation of customers when there was no evidence of any imminent threat of Dey causing Seilevel to lose any active customers?

9. Did the trial court abuse its discretion in issuing the temporary injunction when Seilevel failed to meet the requirements of likelihood of success on the merits and irreparable injury?

Distilled to their essence, Dey’s issues are a complaint that the trial court abused its

discretion in issuing its Order Granting Temporary Injunction. We modify the temporary

injunction and affirm the order of injunction as modified.

BACKGROUND

Seilevel is in the business of providing ecommerce and marketing information to

business customers, which includes Fortune 1000 companies. In June 2018, Dey was

hired as Seilevel’s Ecommerce Practice Manager. His employment required an

agreement to the conditions of an Employee Innovation Assignment, Nondisclosure,

Noncompete, and Nonsolicitation Agreement.

Dey was terminated on January 27, 2021, and the parties entered into an

Agreement and General Release, a severance agreement. Dey’s post-employment

obligations included a provision that he “ha[d] not divulged any proprietary or confidential

information of Seilevel and [would] continue to maintain the confidentiality of such

information” (Paragraph 5) and his affirmation that he “ha[d] returned all of Seilevel’s

3 property, documents, and/or any confidential information in [his] possession or control,

including audio pen and recordings, laptop, and other material issued to [him]”

(Paragraph 6). Regarding the laptop, a Macbook Pro, Seilevel allowed Dey to keep it as

an act of good will on the condition and belief that he would remove all of Seilevel’s

information. 4

After Dey’s termination, Seilevel discovered it was unable to gain access to

certain accounts because Dey had created them under a personal Google account and

not under Seilevel’s workspace. Lisa Hill, vice president of technology strategy and

Dey’s former direct manager, contacted Dey to obtain the password which he provided

but it was incorrect. After he provided the correct password, she was still unable to gain

access because Dey had set up a two-factor authentication. Dey met with Hill on March

3, 2021, to transfer the two-factor authentication to her cell phone; however, that also

failed to provide Hill with access because the two-factor authentication had been

transferred to an application that only Dey could access. After months of back-and-forth

and Hill being denied access, she finally gained control of the accounts on May 27. In

doing so, she discovered that Dey had been accessing Seilevel’s confidential

information, downloading files, and contacting Seilevel customers, all in violation of his

severance agreement. 5 She described his activities as “nefarious.”

4 During discovery, Dey claimed he had wiped the laptop in March and sold it to a random individual in a van through Facebook Marketplace, but at his deposition in July, he testified that he had sold a different laptop and had given the Macbook Pro to his wife to use. 5 Contrary to Hill’s testimony, Dey denied accessing confidential information. He claimed he was merely denying authorization for attempts to log in because he was unaware of who was trying to access the account.

4 Seilevel filed suit against Dey on June 11, 2021, and that same day the trial court

granted an agreed temporary restraining order. Several months later, on August 24,

2021, the trial court held a hearing on the request for a temporary injunction. The four

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