Deep Water Slender Wells, Ltd. v. Shell International Exploration & Production, Inc.

234 S.W.3d 679, 2007 WL 1745322
CourtCourt of Appeals of Texas
DecidedSeptember 6, 2007
Docket14-06-00165-CV
StatusPublished
Cited by114 cases

This text of 234 S.W.3d 679 (Deep Water Slender Wells, Ltd. v. Shell International Exploration & Production, Inc.) 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
Deep Water Slender Wells, Ltd. v. Shell International Exploration & Production, Inc., 234 S.W.3d 679, 2007 WL 1745322 (Tex. Ct. App. 2007).

Opinion

OPINION

KEM THOMPSON FROST, Justice.

In this business-torts case, we determine the scope and enforceability of a forum-selection clause. Two companies and the owner of their common parent company sued an international exploration and production company and three of its current or former employees, asserting various tort claims relating to the defendants’ alleged misappropriation of the plaintiffs’ alleged oilfield-technology trade secrets. *683 The trial court enforced a forum-selection clause requiring litigation in a foreign forum and dismissed all of the claims. The main issue on appeal is whether the trial court erred in dismissing all claims under the forum-selection clause. Concluding the trial court did not err, we affirm the trial court’s order enforcing the forum-selection clause. Because in this order the trial court necessarily vacated its prior order granting partial summary judgment, the appeal from the partial summary judgment is moot.

I. FACTUAL AND PROCEDURAL BACKGROUND

Appellant James G. Wood is a British citizen whose permanent residence is on the Isle of Man, though he recently has been working in Houston, Texas. Wood is the owner of Preda Consultants, Ltd., an English company that owns both appellant Preda Consultants, Inc. (“Preda”), a Texas corporation, and appellant Deep Water Slender Wells, Ltd. (“Deep Water”), an English company. Appellee Shell International Exploration and Production, Inc. (“Shell International”) is a Delaware corporation with its principal place of business in Texas. Appellants/plaintiffs Deep Water, Preda, and Wood (hereinafter collectively “Deep Water Parties”) filed suit in the court below against appellees/defen-dants Shell International and its current or former employees Jim Adam, Graham Brander, and Mark S. Leonard (hereinafter collectively “Shell Parties”).

In June 1999, Shell International Deep-water Services, B.Y. (“Shell Services”), a company incorporated in The Netherlands, and Deep Water signed a Consulting Agreement that was effective as of April 5, 1999. In this Consulting Agreement, the parties agreed, among other things, as follows:

• The “provision of services” will be carried out by Deep Water in accordance with the Consulting Agreement.
• The Consulting Agreement shall continue in force until August 30, 1999, provided that any provision of the Consulting Agreement may continue in effect for the purposes of that provision if that provision is expressly or by implication intended to remain in force after the termination of the Consulting Agreement.
• As used in the Consulting Agreement, “SERVICES” means all work to be carried out by Deep Water as further defined in Section E of the Consulting Agreement. In Section E, the parties agreed that the total scope of “the SERVICES to be provided under [the Consulting Agreement] and for which [Deep Water] shall be reimbursed in accordance with the Schedule of Prices is defined in [four attached documents].”
• In Section E, the parties further agreed that, in addition to the “SERVICES,” Deep Water also would perform the work detailed in three other attached documents (“Additional Work”). Although the Additional Work would not be a part of the “SERVICES under the [Consulting Agreement]” and, therefore, Shell Services would have no ownership rights to the results of the Additional Work, Deep Water agreed to give access rights to the results of the Additional Work to each company that signed the form of Confidentiality Agreement attached to and made a part of the Consulting Agreement.
• The Consulting Agreement shall be governed exclusively by and interpreted in accordance with the law of The Netherlands, and the parties irrevocably agree that the courts of The *684 Hague, The Netherlands shall have exclusive jurisdiction to resolve any controversy or claim of whatever nature arising out of or relating to the Consulting Agreement or breach thereof.

Deep Water performed the work defined as “SERVICES” under the Consulting Agreement, and Shell Services received a report regarding the results of this work, in which Shell Services had ownership rights. Deep Water also performed the Additional Work. In accordance with the terms of the Consulting Agreement, Shell Services received a copy of the report reflecting the results of this work after Shell Services signed the form of Confidentiality Agreement attached to the Consulting Agreement. Although not parties to the Consulting Agreement, BP Exploration Operating Company Limited (“BP”), Den Norske Stats Oljeselskap A.S. (“Sta-toil”), and Elf Exploration Production (“Elf’), each signed the Confidentiality Agreement and also received a copy of the report reflecting the results of the Additional Work. In the Confidentiality Agreement, the parties thereto agreed that the Confidentiality Agreement contains their entire agreement and supersedes all prior understandings, arrangements, and agreements among these parties with respect to the subject matter of that agreement.

In their live pleading, the Deep Water Parties make the following allegations:

• James G. Wood is president and Chief Executive Officer of Preda and Deep Water.
• Mark Leonard is president and Chief Executive Officer of Shell International.
• During the 1990s, Wood began exploring ways to develop technology that would permit the economical development of deep water oil and gas reserves in regions that do not have the meteorological, geographic, and geological challenges of areas where deep water drilling evolved. Wood formed Deep Water to develop a kit that would allow conversion of standard offshore drilling rigs into safe, economical, and effective deep water drilling platforms.
• The Deep Water Parties spent thousands of engineering hours and tens of thousands of dollars to develop this technology.
• In 1999, after the Deep Water Parties had spent much valuable time and money developing this technology, they had an opportunity to further develop the technology and to put it to a practical test in Africa.
• “Shell International Deepwater Services, B.V., as an affiliate alter ego and predecessor of Shell International Exploration and Production, Inc. (‘Shell’) agreed to work with [the Deep Water Parties] in the WADO field off the coast of Nigeria to put [the Deep Water Parties’] technology to work.” 1
• For the opportunity to work on the WADO field project, Shell International 2 and other companies agreed *685 that they would keep all information provided by Deep Water confidential. These parties defined the confidential information using the definition of “Slender Well Technology” that is also set forth and used in the Deep Water Parties’ petition. This definition is the same definition of the confidential “Slender Well Technology” that is used in the Confidentiality Agreement.

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Cite This Page — Counsel Stack

Bluebook (online)
234 S.W.3d 679, 2007 WL 1745322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deep-water-slender-wells-ltd-v-shell-international-exploration-texapp-2007.