Bureau Veritas Commodities and Trade, Inc. v. Cotecna Inspection SA

CourtDistrict Court, S.D. Texas
DecidedMarch 29, 2022
Docket4:21-cv-00622
StatusUnknown

This text of Bureau Veritas Commodities and Trade, Inc. v. Cotecna Inspection SA (Bureau Veritas Commodities and Trade, Inc. v. Cotecna Inspection SA) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bureau Veritas Commodities and Trade, Inc. v. Cotecna Inspection SA, (S.D. Tex. 2022).

Opinion

□ Southern District of Texas ENTERED March 29, 2022 IN THE UNITED STATES DISTRICT COURT Nathan Ochsner, Clerk FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION BUREAU VERITAS COMMODITIES AND § TRADE, INC., § § Plaintiff, § § VS. § CIVIL ACTION NO. 4:21-CV-00622 § COTECNA INSPECTION SA and § SEBASTIEN DANNAUD, § § Defendants. § ORDER Before the Court is Defendants’ Motion to Dismiss for Lack of Personal Jurisdiction and, in the Alternative, Failure to State a Claim and for a More Definite Statement (Doc. No. 9). Plaintiff filed a response in opposition (Doc. No. 15), and Defendants replied thereto (Doc. No. 17). After careful consideration, the Court denies the Motion. I. Background Plaintiff Bureau Veritas Commodities and Trade, Inc. (“Plaintiff’ or “Bureau Veritas”) is a Delaware corporation headquartered in Harris County, Texas.! Bureau Veritas provides independent inspection, sampling, testing, and certification services to traders in the commodities business. Its Metals and Minerals (“M&M”) Division provides sampling, inspection, and analysis of metals and minerals. Defendant Cotecna Inspection SA (“Cotecna”) is a Swiss corporation and global competitor of Bureau Veritas. According to Bureau Veritas, Cotecna—acting through its American subsidiary, Cotecna Inspection, Inc. (“Cotecna U.S.”)—engaged in a scheme to “ransack” Bureau

! Prior to changing its name in March 1, 2020, Bureau Veritas was known as Inspectorate America Corporation. (Doc. No. 1, at 2).

Veritas’s business by hiring several key employees from Bureau Veritas’s M&M Division (located in Houston, Texas) and misappropriating Bureau Veritas’s trade secrets, proprietary data, and confidential information. (Doc. No. 1, at 3). According to the complaint, the alleged scheme was directed by Defendant Sebastien Dannaud (“Dannaud”), a foreign individual’ residing in Switzerland. Dannaud is the global Chief Executive Officer (CEO) of Cotecna. According to Bureau Veritas, Dannaud conspired with Stefanus Nel (“Nel”), the most senior leader in Bureau Veritas’s M&M Division, to hire away senior officials within the M&M division and to misappropriate Bureau Veritas’s trade secrets and confidential information. These hirings allegedly allowed Cotecna to start a competing M&M division in North and Latin America, to build a laboratory in Louisiana, and to open a new office in Texas. Since moving to Cotecna, the former employees have allegedly begun soliciting Bureau Veritas customers into switching their business to Cotecna. The alleged details of the purported scheme are as follows. The scheme was launched in February 2020, when Nel reached out to Dannaud. Nel, who was located in Texas, disclosed Bureau Veritas trade secrets to Dannaud, and Dannaud used this information to persuade Cotecna to hire several Bureau Veritas employees. Dannaud and Nel communicated through email and text messages while Nel was in Texas. Moreover, Dannaud met with Nel in person in Texas around late February 2020 to discuss the plan to “ransack” Bureau Veritas’s M&M Division. From February 2020 onward, Defendants executed the plan. Nel and a manager of Bureau Veritas’s M&M Division, along with Dannaud, worked on starting Cotecna’s competing M&M business “as soon and fast as possible,” which included contacting one of Bureau Veritas’s outsource lab partners as well as Bureau Veritas’s customers to inform them of the former employees’ impending

2 According to his declaration, Dannaud is a citizen of France. (Doc. No. 9, Ex. 1, at 2).

move to Cotecna and Cotecna’s new M&M division. These steps were followed by several resignations of Bureau Veritas M&M Division employees between April and June 2020 and a former lab employee in September 2020. Upon their resignations, these former employees “stole” confidential and trade secret information. (Doc. No. 1, at 14-15). When they joined Cotecna they joined in nearly identical roles and began pursuing business from Bureau Veritas’s M&M customers and relied upon the information they took from Bureau Veritas. Bureau Veritas sued, seeking to recover damages from Defendants for alleged violations of the federal Defendant Trade Secrets Act (DTSA), the Texas Uniform Trade Secrets Act (TUTSA), and knowing participation in the former employees’ breaches of their fiduciary duties (Doc. No. 1). Defendants subsequently filed a motion to dismiss for lack of personal jurisdiction under Rule 12(b)(2) and failure to state a claim under Rule 12(b)(6). (Doc. No. 9). In the alternative, Defendants request a more definite statement pursuant to Rule 12(e). Plaintiff filed a response in opposition (Doc. No. 15), and Defendants replied thereto (Doc. No. 17). Ul. Legal Standards A. Personal Jurisdiction Under Rule 12(b)(2) A federal district court may exercise personal jurisdiction over a nonresident defendant if “(1) the long-arm statute of the forum state confers personal jurisdiction over that defendant; and (2) exercise of such jurisdiction by the forum state is consistent with due process under the United States Constitution.” Latshaw v. Johnston, 167 F.3d 208, 211 (Sth Cir. 1999). Where the plaintiff alleges specific jurisdiction, as here, due process requires “(1) minimum contacts by the defendant purposefully directed at the forum state, (2) a nexus between the defendant’s contacts and the plaintiff's claims, and (3) that the exercise of jurisdiction over the defendant be fair and reasonable.” ITL Int’l, Inc. v. Constenla, S.A., 669 F.3d 493, 498 (Sth Cir. 2012). The burden of

establishing personal jurisdiction over a nonresident defendant lies with the plaintiff. Clemens vy. McNamee, 615 F.3d 374, 378 (Sth Cir. 2010). When a district court rules on a Rule 12(b)(2) motion without a hearing, as is the case here, the plaintiff must make a prima facie showing of jurisdiction. Johnston v. Multidata Sys. Int’l Corp., 523 F.3d 602, 609 (Sth Cir. 2008). The court may consider the contents of the record, including affidavits or other recognized methods of discovery, in deciding whether to exercise personal jurisdiction. Stuart v. Spademan, 772 F.2d 1185, 1192 (Sth Cir. 1985). Generally, the court accepts the plaintiffs non-conclusory, uncontroverted allegations as true, and resolves conflicts between the facts contained in the parties’ affidavits in the plaintiff's favor. Panda Brandywine Corp. v. Potomac Elec. Power Co., 253 F.3d 865, 868 (Sth Cir. 2001). B. Failure to State a Claim Under Rule 12(b)(6) A defendant may file a motion to dismiss a complaint for “failure to state a claim upon which relief may be granted.” FED. R. Civ. P. 12(b)(6). To defeat a motion to dismiss under Rule 12(b)(6), a plaintiff must plead “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 663 (2009) (citing Twombly, 550 U.S. at 556).

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Bureau Veritas Commodities and Trade, Inc. v. Cotecna Inspection SA, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bureau-veritas-commodities-and-trade-inc-v-cotecna-inspection-sa-txsd-2022.