Forscan Corp. v. Touchy

743 S.W.2d 722, 1987 Tex. App. LEXIS 9074, 1987 WL 215
CourtCourt of Appeals of Texas
DecidedDecember 17, 1987
DocketB14-87-641-CV
StatusPublished
Cited by19 cases

This text of 743 S.W.2d 722 (Forscan Corp. v. Touchy) 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
Forscan Corp. v. Touchy, 743 S.W.2d 722, 1987 Tex. App. LEXIS 9074, 1987 WL 215 (Tex. Ct. App. 1987).

Opinion

OPINION

ELLIS, Justice.

In this mandamus proceeding, relators Forscan Corporation and Piero Wolk request that the court of appeals direct the Honorable Hugo A. Touchy, Judge of the 129th District Court of Harris County:

(1) to allow relators to call at trial two expert witnesses designated after the court imposed deadline for discovery;
(2) to allow relators to depose two witnesses designated by plaintiff Dresser Industries, Inc., immediately before the discovery deadline set by the court;
(3) to allow relators to discover the in-house prosecution files of Dresser and to depose the creator of any document in those files, and
(4) to allow relators to use at trial the testimony given by opposing counsel at a pre-trial hearing.

We deny the petition for writ of mandamus with respect to all requests.

During the years 1967 through 1976, relator Piero Wolk worked for Dresser Industries, Inc., the real party in interest, as both an employee and as a consultant. After his association with Dresser ended, Mr. Wolk sought to develop and market a well logging tool to be used in petroleum exploration. He incorporated a small business, Forscan Corporation, for this purpose in 1979. In July 1981, independent counsel for Dresser, Arlon Groves of Bard, Groves, Sroufe, Ryerson & Jackson, contacted Mr. Wolk expressing the concern of Dresser that Forscan’s tools may have incorporated proprietary information or trade secrets of Dresser to which Mr. Wolk had had access as Dresser’s employee. Mr. Wolk’s written reply invited Dresser to buy one of For-scan’s compensated density tools, stating “we are not concerned about ‘contamination’ since we are in an open market. Personally, I would be delighted if Dresser gains any engineering benefit from our design.” Despite this statement, Mr. Wolk insisted that Dresser sign a disclosure agreement stating that design and operational information on the logging tool would be kept confidential and used “for evaluation purposes” and would not be appropriated for its own use or benefit. Such an agreement was signed and the tool, its component parts, and its drawings were inspected.

As a result of the inspection, Dresser concluded that Forscan’s well logging tool incorporated technical information belonging to Dresser. Shortly thereafter Dresser filed suit to enjoin Forscan and Mr. Wolk from making and selling the logging tool, alleging a misappropriation and misuse of trade secrets and confidential information, unfair competition and breach of an employment agreement (executed in 1971) and a consultant agreement (executed in 1975). Mr. Wolk and Forscan counter-claimed that Dresser was engaging in unfair competition, was abusing civil process, was misappropriating Forscan’s trade secrets and confidential information, and was committing fraud on the court. The trial court granted a temporary injunction to the extent of requiring that Forscan give notice to buyers that the equipment was subject to pending litigation. Attempting to broaden the injunction, Dresser appealed, but it failed to bring the entire record before the appellate court. Although this court noted that the record showed that Mr. Wolk had worked in logging operations at Dresser and had had access to the information, we affirmed the limited injunction on the basis that where only a partial statement of facts is submitted, the appellate court must presume that the evidence omitted supports the judgment of the trial court Dresser *724 Industries, Inc. v. Forscan Corp., 641 S.W.2d 311 (Tex.App.—Houston [14th Dist.] 1982, no writ).

In March 1982, six months after filing suit against Mr. Wolk and Forscan, Dresser applied for a patent on a well logging apparatus. The patent was granted on February 21, 1984.

The suit lay virtually dormant until May 1986 when a motion by relators to retain the case on the court’s docket was granted. At that hearing the court issued an oral instruction that all discovery was to be completed by August 18,1986, and the case would be certified for trial at that time. Although no order to that effect was signed by the court, the court’s ruling was noted on the trial docket sheet: “[A]ll discovery to be completed by 8/18/86.” At the request of relators on August 4th, the trial court extended the discovery deadline until September 1st, again signing only a docket notation: “Discovery extended to 9-1-86 when case will be certified.” No further requests for extension of the discovery period were made prior to September 1st.

Dresser designated one expert witness well before the discovery cut-off, a second on August 26th, a third on August 29th, and two additional experts after September 1st. Relators designated their only two experts (other than Mr. Wolk, the co-defendant) after the deadline. Dresser moved to have the court strike all witnesses of all parties designated after the deadline, including its own experts. The motion was granted and noted on the docket.

Even though the discovery termination date was never embodied in a formal order,' the action of the trial court in striking the witnesses named after September 1, 1986, makes clear the court’s intent to enforce the discovery cut-off as to designation of expert witnesses. There is no dispute that the result was to leave Dresser with three expert witnesses and relators with none except for the interested party Mr. Wolk. Relators contend that it is “an abuse of discretion to create such an imbalance.” By their first request relators ask that this court direct Judge Hugo Touchy to vacate or modify the ruling recorded in his docket entry of August 4th and allow them to call at trial two expert witnesses designated after the court deadline. We refuse.

Mandamus will issue only to correct trial court actions when there has been a clear abuse of discretion or the violation of a duty imposed by law and when relator has no adequate remedy on appeal. Garcia v. Peeples, 734 S.W.2d 343, 346 (Tex.1987); Johnson v. Fourth Court of Appeals, 700 S.W.2d 916, 917 (Tex.1985). Relators’ petition fails to meet this standard.

A trial court acts within its discretion in setting a deadline for the naming of expert witnesses. Werner v. Miller, 579 S.W.2d 455, 456 (Tex.1979). This rule is especially applicable in a case that has languished, unprosecuted, on the docket for five years. The fact that the case was not set for trial as quickly as the trial judge anticipated is irrelevant. It is also irrelevant that the effect of the ruling is harsher on one party than the other. Both had equal opportunity to comply with the deadline. The imbalance was not the creation of the trial court. The assumption of rela-tors that discovery would remain open until a certification order was signed was unjustified in light of the deadline issued by the trial court and the docket entry. Relators obviously took the deadline seriously when they requested its extension from August 18th to September 1st.

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Bluebook (online)
743 S.W.2d 722, 1987 Tex. App. LEXIS 9074, 1987 WL 215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forscan-corp-v-touchy-texapp-1987.