Frank Surveying Co Inc v. Harp

District Court, N.D. Texas·Decided August 1, 2024·No. 3:22-cv-02837·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

FRANK SURVEYING CO., INC., § § Plaintiff, § § v. § § CIVIL ACTION NO. 3:22-cv-02837-B M. DILLON HARP, MANHARD § CONSULTING LTD., and ALLEN § PELOQUIN, § § Defendants. §

MEMORADUM OPINION & ORDER

Before the Court is Plaintiff Frank Surveying Co., Inc. d/b/a FSC, Inc. (“FSC”)’s Motion for Partial Summary Judgment (Doc. 156). After considering the Motion, arguments, and applicable law, the Court DENIES the Motion. I. BACKGROUND FSC is a land surveying company based in Columbus, Texas. Doc. 158-1, Pl.’s App’x, 1. In its simplest form, surveying means “making relatively large-scale, accurate measurements of the Earth’s surfaces.” John Lyman & John Wilfrid Wright, surveying, ENCYCLOPEDIA BRITANNICA (July 1, 2024), https://www.britannica.com/technology/surveying. Surveying includes: (1) determining existing relative horizontal and vertical points to map from land, and (2) the establishment of marks to control construction projects or to indicate land boundaries. Id. FSC conducts multiple types of surveying including boundary surveying, construction surveying, and oil and gas surveying, which requires assessing existing or future wells pipelines, and other relevant infrastructure. Doc. 158-7, Pl.’s App’x, 30; Doc. 158-9, Pl.’s App’x, 118. FSC accuses its former employee, Defendant M. Dillion Harp, and his new employer, Defendant Manhard Consulting Limited (“Manhard”), of misappropriating FSC’s surveying maps for their

own competitive advantage. FSC also accuses Harp of breaching a confidentiality agreement he executed during his employment with FSC. Doc. 156, Mot. Harp is a licensed surveyor in Texas, New Mexico, and Louisiana. Doc. 158-1, Pl.’s App’x, 1. FSC hired Harp and eventually promoted him to Vice President of Surveying. Id. Harp worked in FSC’s Fort Worth office, which he co-managed with another defendant in this case. Id. Harp was employed by FSC until November 22, 2022. Doc. 158-7, Pl.’s App’x, 77. Between 2016 and

2022, Harp was required to abide by FSC’s Employee Handbook. Doc. 158-3, Pl.’s App’x, 8–9. The handbook states “. . . confidential information regarding [FSC] and its clients may be encountered. Employees are not to reveal or divulge any information inside or outside the office . . . . Any violation of the above will result in immediate termination.” Id. at 9. The Employee Handbook does not define “confidential information.” See generally Doc. 222, Defs.’ Sealed App’x, 128–174. On June 9, 2020, FSC emailed the company’s employees, including Harp, asking them to

execute an attached confidentiality agreement in light of “the [confidential] nature of work of some of our clients.” Doc. 222, Defs.’ Sealed App’x, 126. The same day, Harp signed the agreement (“Confidentiality Agreement”). Doc. 158-2, Pl.’s App’x, 4–5. Among other things, Harp agreed he would not (i) “disclose or divulge either directly or indirectly the Confidential Information to others unless first authorized to do so in writing by FSC, Inc. management,” nor (ii) “reproduce [FSC’s] Confidential Information nor use this information commercially or for any purpose other than the performance of his[] duties for FSC, Inc.” Id. at 4. The Confidentiality Agreement defines “Confidential Information” as “information or data of any kind concerning any matters affecting or relating to FSC, Inc. the business or operations of FSC, Inc., and/or the

products, drawings, plans, processes, or other data of FSC, Inc. not generally known or available outside of the company.” Id. Later that summer, Harp had a conversation about his data sharing obligations in the context of his leaving FSC. On July 30, 2022, he texted with FSC’s HR manager and another FSC employee.1 Doc. 158-4, Pl.’s App’x, 10. Harp asked the HR manager whether Harp had signed a non-compete with FSC. Id. The HR Manager clarified Harp did not have a non-compete but was

bound by the Confidentiality Agreement. Id. The HR manager also told Harp he was not allowed to copy materials from FSC’s server. Id. His co-worker suggested that Harp could “email [s]tuff to clients,” advising Harp to text a client “and ask [the client] to request dwg files.” Id. The HR Manager chimed in that Harp should instead call the client so that “it’s not in writing.” Id. The following month, Harp interviewed with Manhard. Doc. 221, Defs.’ App’x, 47. In late October 2022, Manhard offered Harp a position as a Director of Surveying, which he accepted. Id. Around

the same time, Harp gave FSC notice of his resignation. Id. He continued to work for FSC until late November 2022. Id. Meanwhile, on August 4, 2022, a representative from FSC’s client, ExxonMobil, asked Harp and two other FSC employees for “information you have available for [ExxonMobil] operations including corners, lease lines, bores, etc[.]” Doc. 158-5, Pl.’s App’x, 11–12. The ExxonMobil representative sought this information because an internal geologist wanted “updated

1 This employee, Allen Peloquin, is also a defendant in the case but the instant Motion does not concern claims against him. spatial information . . . since [ExxonMobil] w[as] having issues staking and spacing various wells associated with [its] projects.” Doc. 221, Defs.’ App’x, 207. On August 8, 2022, one of the FSC employees responded by sending ExxonMobil two documents—one a .dwg file and the other a .crd

file. Doc. 158-5, Pl.’s App’x, 11–12. This employee was “managed directly” by Harp. Doc. 158-7, Pl.’s App’x, 23. The same FSC employee sent two more files also formatted in dwg and crd. Id. at 13. The ExxonMobil representative put the files on her local drive but “forgot to do the rest of [her] job and pass them along” to the geologist. Doc. 158-12, Pl.’s App’x, 228. On October 28, 2022, another ExxonMobil representative responded to the same email chain to ask FSC if the data sent on August 8, 2022 was “the most update[d] info.” Doc. 158-6, Pl.’s App’x, 14. The same FSC employee that emailed the four previous files responded by

attaching two additional files, formatted in dwg and crd. Id. On November 7, 2022, a third ExxonMobil representative sent two Manhard employees all six files. Doc. 159-1, Pl.’s Sealed App’x, 295–97. According to FSC, the trade secrets at issue are the six emailed files (the “Base Map Files”). Doc. 157, Pl.’s Mot. Br., 2. Doc. 159-1, Pl.’s Sealed App’x, 295–97. ExxonMobil hired Manhard for a project and the at least one of the Base Map Files was used by Manhard in support of that project. See Doc. 221, Defs.’ App’x, 47.

The Base Map Files are survey drawings that incorporate information FSC has compiled from surveying certain geographic areas for clients. Doc. 157, Pl.’s Mot. Br., 2; Doc. 220, Resp., 7. FSC uses the Base Map Files for surveying jobs in Texas and New Mexico because they allow “FSC to reference the previously-collected [surveying] data when working in the same area.” Doc. 158-1, Pl.’s App’x, 1–2. The parties agree that the Base Map Files contain “control points,” or reference points, and objective boundary lines. Compare Doc. 157, Pl.’s Mot. Br., 2 with Doc. 220, Defs.’ Resp., 7; Doc. 158-7, Pl.’s App’x,, 31. Harp and Manhard (together, “Defendants”) also do not dispute that the Files contain surveyors’ legal opinions, boundary interpretations, and field notes. Id.; Doc. 158-7, Pl.’s App’x, 22, 44–46. However, Defendants assert some of the information in the

Files is publicly available. E.g., id. at 45. FSC stores the Base Map Files on its network drive, which can be accessed by its employees through their network usernames and passwords. Doc. 158-18, Pl.’s App’x, 299. On December 19, 2022, FSC filed a complaint and motion for a temporary restraining order, preliminary injunction and permanent injunction (“TRO Motion”) against Harp. Docs. 1– 2.

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