Global Advantech v. Brown

CourtCourt of Appeals for the Fifth Circuit
DecidedMay 27, 2026
Docket25-20413
StatusUnpublished

This text of Global Advantech v. Brown (Global Advantech v. Brown) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Global Advantech v. Brown, (5th Cir. 2026).

Opinion

Case: 25-20413 Document: 79-1 Page: 1 Date Filed: 05/27/2026

United States Court of Appeals for the Fifth Circuit United States Court of Appeals ____________ Fifth Circuit

FILED No. 25-20413 May 27, 2026 ____________ Lyle W. Cayce Clerk Global Advantech Resources Limited,

Plaintiff—Appellee,

versus

Richard Brown; Snake River Oil & Gas, L.L.C.; Weiser- Brown Oil Company,

Defendants—Appellants. ______________________________

Appeal from the United States District Court for the Southern District of Texas USDC No. 4:22-CV-3968 ______________________________

Before Stewart, Engelhardt, and Douglas, Circuit Judges. Per Curiam: * Defendants-Appellants Richard Brown, Snake River Oil & Gas, L.L.C., and Weiser-Brown Oil Company (“the Brown Defendants”) appeal the district court’s order denying their August 2025 motions seeking to compel the claims asserted by Plaintiff-Appellee Global Advantech Resources Limited (“GAR”) to arbitration and to stay discovery and all

_____________________ * This opinion is not designated for publication. See 5th Cir. R. 47.5. Case: 25-20413 Document: 79-1 Page: 2 Date Filed: 05/27/2026

No. 25-20413

unexpired pretrial and trial deadlines pending disposition of the motion to compel. For the reasons stated herein, we AFFIRM. I. GAR alleges that the Brown Defendants, in combination with other allegedly associated natural persons and business entities, disclosed GAR’s proprietary and confidential information to third parties (state and federal regulatory agencies) without GAR’s authorization. GAR originally provided the information to Alta Mesa Holdings, LP (“Alta Mesa”), a Texas company, as part of a proposal for GAR to provide a wastewater treatment system to Alta Mesa, after Dale Hayes, on behalf of Alta Mesa, executed a “Confidentiality and Non-Circumvention Agreement” (“the NDA”) on February 10, 2017. The NDA includes an arbitration provision, in Clause 4.3, which states: Any dispute arising out of or in connection with this Agreement, including any question regarding its existence, validity or termination, shall be referred to and finally resolved by arbitration under the London Court of International Arbitration (LCIA) Rules, which Rules are deemed to be incorporated by reference into this clause. The number of arbitrators shall be one (the ‘Sole Arbitrator’). GAR provided proposals to Alta Mesa, after discussions over a number of months, in May, July, August, and December 2017. Discussions between the companies regarding GAR’s proposals ended on February 1, 2018, however, when “Defendant Hayes’ [January 31, 2018] email made it clear [Alta Mesa] had made a management decision not to go with [GAR’s] proposal.” Several months later, a November 16, 2018 email from Hayes first alerted GAR that an unauthorized disclosure of its confidential and

2 Case: 25-20413 Document: 79-1 Page: 3 Date Filed: 05/27/2026

proprietary information had occurred. According to paragraph 62 of the First Amended Complaint, the email stated, in pertinent part: We need to ask your forgiveness and ask for a favor, if you agree with our request. We used some of the information from your 5/6/2017 Proposal for Packaged Produced Water Treatment Systems to give credence to our argument with a regulatory agency. . . . It appears that the entire GA proposal was submitted to the regulatory agency and now there have been requests from the public for copies of this documentation. We now realize that we should have obtained your consent before we submitted the documents to them. The regulatory folks are seeing the copyright information in the documentation you provided, and are asking if it is possible to remove the copyright . . . ? Would it be possible for you to give us a waiver for the use of the information and release of the copyright, for this purpose? As a result of the unauthorized disclosure(s), 1 GAR filed suit against Hayes, Harlan Chappelle, and James Hackett on November 15, 2022. The Brown Defendants were added as defendants in GAR’s May 4, 2023 First Amended Complaint. 2 GAR asserts a number of state and federal-law claims, including claims of fraudulent inducement, common law fraud, and civil conspiracy, as well as claims asserted under the federal Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1831, et seq., and the Texas Uniform Trade Secrets Act (“TUTSA”), Tex. Civ. Prac. Rem. Code § 134(A), seeking declaratory relief and damages.

_____________________ 1 GAR alleges that the Brown Defendants “evidently continued to illicitly and illegitimately misuse” GAR’s confidential information in applying for regulatory (EPA) approval. 2 The Brown Defendants were served on July 14 and 19, 2023.

3 Case: 25-20413 Document: 79-1 Page: 4 Date Filed: 05/27/2026

On August 4, 2023, the Brown Defendants filed a motion, pursuant to Federal Rules of Civil Procedure 12(b)(2), 12(b)(6), and 12(b)(7), seeking dismissal with prejudice for lack of personal jurisdiction and, alternatively (if the district court were to conclude it has personal jurisdiction), for failure to state a claim, and for failure to join an indispensable party. In requesting dismissal under Rule 12(b)(6), the Brown Defendants argued that GAR’s claims against them are barred by the applicable statutes of limitations; that GAR lacks standing to pursue an alter ego claim that belongs to Alta Mesa’s and High Mesa Holdings, L.P.’s bankruptcy estates; that GAR has not specifically or plausibly alleged fraud; and that GAR’s fraud and fraudulent inducement claims are barred by the “economic loss” rule and for lack of privity. In the motion’s conclusion, the Brown Defendants urged: Plaintiff’s claims against Movants should be dismissed with prejudice for lack of personal jurisdiction. In the alternative, because Plaintiff has not, and indeed cannot, plausibly allege any cognizable claim against Movants, Plaintiff’s claims against Movants should be dismissed with prejudice for failure to state a claim upon which relief can be granted. On August 29, 2024, the district court held a telephone scheduling conference with counsel and entered an order stating: Pursuant to phone conference conducted this day, the Court removes this case from the trial docket, takes up the pending motions and, if necessary, enters a docket control order. 3 On September 26, 2024, the district court denied the Brown Defendants’ August 24, 2023 motion to dismiss, reasoning that the pleading-

_____________________ 3 The district court’s April 20, 2023 Scheduling Order contemplated a September 2024 trial.

4 Case: 25-20413 Document: 79-1 Page: 5 Date Filed: 05/27/2026

sufficiency requirements of Rules 8 and 12(b)(6) had been met, that the pleadings and proffered documents revealed factual disputes, and that discovery was necessary to “unravel the relationships between and among the individuals and [related] entities.” 4 On September 30, 2024, the district court entered an Amended Scheduling Order setting a January 2026 trial date and corresponding pretrial deadlines. 5 On October 10, 2024, the Brown Defendants filed an “Answer and Defenses to Plaintiff’s First Amended Complaint.” Regarding personal jurisdiction, the Answer states, in footnote 1: [The Brown Defendants’] jurisdictional challenges remain live. The Answer is expressly made subject to [the Brown Defendants’] arguments against the exercise of personal jurisdiction, and [the Brown] Defendants reserve all rights with respect to the same.

_____________________ 4 See September 26, 2024 Order.

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Global Advantech v. Brown, Counsel Stack Legal Research, https://law.counselstack.com/opinion/global-advantech-v-brown-ca5-2026.