Booster Fuels, Inc. v. Fuel Husky, LLC D/B/A Instafuel

CourtCourt of Appeals of Texas
DecidedNovember 4, 2021
Docket14-19-00912-CV
StatusPublished

This text of Booster Fuels, Inc. v. Fuel Husky, LLC D/B/A Instafuel (Booster Fuels, Inc. v. Fuel Husky, LLC D/B/A Instafuel) 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
Booster Fuels, Inc. v. Fuel Husky, LLC D/B/A Instafuel, (Tex. Ct. App. 2021).

Opinion

Affirmed and Memorandum Opinion filed November 4, 2021.

In The

Fourteenth Court of Appeals

NO. 14-19-00912-CV

BOOSTER FUELS, INC., Appellant

V. FUEL HUSKY, LLC D/B/A INSTAFUEL, Appellee

On Appeal from the 189th District Court Harris County, Texas Trial Court Cause No. 2019-57856

MEMORANDUM OPINION Appellee Fuel Husky, LLC d/b/a Instafuel (“Instafuel”) sued Ugo Catry and appellant Booster Fuels, Inc. (“Booster”) for misappropriation of trade secrets, conversion, and conspiracy to commit fraud. Booster moved to dismiss Instafuel’s claims under the Texas Citizens’ Participation Act (“TCPA”). The trial court denied the motion and Booster filed this interlocutory appeal. See Tex. Civ. Prac. & Rem. Code Ann. § 51.014(a)(12). In a single issue, Booster argues that the trial court erred by failing to grant its motion to dismiss. We affirm the trial court’s order.

I. BACKGROUND Instafuel and Booster each provide mobile fuel delivery services. Instafuel was founded in 2015 by Wisam Nahhas and Nour Baki. According to Instafuel’s live petition, Instafuel’s business model is distinctive because it has targeted commercial fleets as its customer base, whereas Booster originally focused on delivering fuel to individual commuters. In the latter half of 2015, Ugo Catry approached Nahhas in Houston while claiming to work for Total Energy Ventures International, S.A.S. (“Total Energy”) and conveyed an interest in becoming a potential investor.1 Under the guise of being a potential investor, Catry requested Instafuel’s business plans and trade secrets. In November 2015, and February 2018, before Instafuel shared information with Catry, Instafuel and Catry entered into non-disclosure agreement. Instafuel then provided Catry with its confidential pricing strategy, revenue model, and fleet target market. After continued communication between Catry and Instafuel, the parties entered into a second non-disclosure agreement in February 2018, after which Instafuel sent Cary additional information, including its customer lists and updated pitch deck. In 2019, Instafuel discovered that Total Energy was an investor in Booster. Instafuel additionally learned that according to Booster’s LinkedIn webpage, Catry was either advising or directly employed by Booster at the time he approached Nahhas about Instafuel’s trade secrets. According to Instafuel, shortly after it disclosed its confidential customer list to Catry, Instafuel was informed by the

1 In its appellate brief, Instafuel describes Total Energy as “the venture capital arm of one of the biggest oil and gas companies in the world.”

2 customers on that list that Booster had reached out to them and tried to “poach” their business. Additionally, according to Instafuel’s petition, “[i]n what appears to be a clumsy copy-and-paste project, Defendant Booster copied large swaths of Instafuel’s distinctive pitch deck2 provided to Defendant Catry and published this information in Defendant Booster’s sales deck to potential clients, even erroneously claiming Instafuel’s clients as its own.” On August 20, 2019, Instafuel sued Booster for conversion and misappropriation of trade secrets. On September 30, 2019, Booster filed an answer, asserting a general denial. On October 21, 2019, Booster filed a motion to dismiss pursuant to the TCPA. On November 4, 2019, Instafuel filed its second amended petition, wherein Instafuel alleged: “Defendant Booster Fuels has unlawfully gained access to Instafuel’s trade secrets, either by accessing Instafuel’s secure servers in Harris County in Houston, Texas directly or by way of Defendant Catry, who made fraudulent representations concerning Total Energy’s intentions to become an investor in Instafuel,” and added a claim against Booster for conspiracy to commit fraud. A hearing on Booster’s motion was held on November 11, 2019. The motion was denied by the trial court the same day. Booster timely appealed. II. ANALYSIS A. TCPA FRAMEWORK Codified in chapter 27 of the Civil Practice and Remedies Code, the TCPA protects citizens from retaliatory lawsuits that seek to silence or intimidate them on matters of public concern. In re Lipsky, 460 S.W.3d 579, 586 (Tex. 2015) (orig. proceeding); see generally Tex. Civ. Prac. & Rem. Code Ann. §§ 27.001–.011. 2 “A pitch deck is a brief presentation . . . used to provide [an] audience with a quick overview of [a] business plan. [A business] will usually use [a] pitch deck during face-to-face or online meetings with potential investors, customers, partners, and co-founders.” Available at https://pitchdeck.improvepresentation.com/what-is-a-pitch-deck (last visited November 1, 2021).

3 The purpose of the statute is to identify and summarily dispose of lawsuits designed only to chill First Amendment rights, not to dismiss meritorious lawsuits. In re Lipsky, 460 S.W.3d at 589; see also Tex. Civ. Prac. & Rem. Code Ann. § 27.002.

To effectuate the statute’s purpose, the TCPA provides a three-step decisional process to determine whether a lawsuit or claim should be dismissed under the statute. Creative Oil & Gas, LLC v. Lona Hills Ranch, LLC, 591 S.W.3d 127, 132 (Tex. 2019). Under the first step, the trial court must dismiss the action if the moving party shows by a preponderance of the evidence that the legal action is based on, relates to, or is in response to the movant’s exercise of (1) the right of free speech, (2) the right to petition, or (3) the right of association. Tex. Civ. Prac. & Rem. Code Ann. § 27.005(b); Creative Oil & Gas, 591 S.W.3d at 132; In re Lipsky, 460 S.W.3d at 586–87. “But under the second step, the court may not dismiss the action if the non-moving party ‘establishes by clear and specific evidence a prima facie case for each essential element of the claim.’” Creative Oil & Gas, 591 S.W.3d at 132 (quoting Tex. Civ. Prac. & Rem. Code Ann. § 27.005(c)). “Under the third step, the movant can still win dismissal if he establishes ‘by a preponderance of the evidence each essential element of a valid defense to the nonmovant’s claim.’” Id. (quoting Tex. Civ. Prac. & Rem. Code Ann. § 27.005(d)).

The evidence the trial court considers in determining whether a legal action should be dismissed under the TCPA includes the pleadings and affidavits filed by the parties. Tex. Civ. Prac. & Rem. Code Ann. § 27.006(a); see also Hersh v. Tatum, 526 S.W.3d 462, 467 (Tex. 2017).

B. STANDARD OF REVIEW Whether the TCPA applies to a particular claim is an issue of statutory

4 interpretation that we review de novo. See Youngkin v. Hines, 546 S.W.3d 675, 680 (Tex. 2018); see also Comcast Corp. v. Hous. Baseball Partners, LLC, No. 14-20-00043-CV, 2021 WL 2470378, at *8 (Tex. App.—Houston [14th Dist.] June 17, 2021, pet. filed). We view the pleadings and evidence in the light most favorable to the non-movant. Stallion Oilfield Servs., Ltd. v. Gravity Oilfield Servs., LLC, 592 S.W.3d 205, 214 (Tex. App.—Eastland 2019, pet. denied); Cheniere Energy, Inc. v.

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Bluebook (online)
Booster Fuels, Inc. v. Fuel Husky, LLC D/B/A Instafuel, Counsel Stack Legal Research, https://law.counselstack.com/opinion/booster-fuels-inc-v-fuel-husky-llc-dba-instafuel-texapp-2021.