In Re Smith

310 S.W.3d 908, 2010 Tex. App. LEXIS 3148, 2010 WL 1713996
CourtCourt of Appeals of Texas
DecidedApril 29, 2010
Docket11-10-00034-CV
StatusPublished
Cited by6 cases

This text of 310 S.W.3d 908 (In Re Smith) 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
In Re Smith, 310 S.W.3d 908, 2010 Tex. App. LEXIS 3148, 2010 WL 1713996 (Tex. Ct. App. 2010).

Opinion

OPINION

TERRY McCALL, Justice.

Relator, Ray B. Smith, Ph.D., brings this original habeas corpus proceeding and, alternatively, mandamus proceeding complaining of the trial court’s finding him in contempt for violating a permanent injunction. Because the trial court’s final order and judgment of contempt lacks evi-dentiary support, we conditionally grant mandamus relief.

Introduction

In 2007, Dr. Smith published a book entitled Cranial Electrotherapy Stimulation, Its First Fifty Years, Plus Three: A Monograph (the 2007 book). Cranial Electrotherapy Stimulation (CES) is used for treatment of anxiety, depression, insomnia, and other conditions. Dr. Smith’s 2007 book contained his meta-analyses of studies that had been performed to determine the effectiveness of CES in treating various conditions. “Meta-analysis” is defined as “a quantitative statistical analysis of several separate but similar experiments or studies in order to test the pooled data for statistical significance.” MerRiam-Webster’s Collegiate Dictionary 779 (11th ed.2004). Dr. Smith explained in his 2007 book that “[m]eta-analysis is a way of combining the results of many separate studies to see the effectiveness of a treatment.”

Dr. Smith is a former Director of Science at Electromedical Products International, Inc. (EPII). EPII researches, develops, and markets CES technology. EPII asserted that Dr. Smith’s publication of his 2007 book violated a permanent injunction that it had obtained against Dr. Smith in 2003. Therefore, EPII filed a motion to enforce the permanent injunction and to hold Dr. Smith in contempt for violating the permanent injunction. Following a hearing on EPII’s motion, the trial court found that Dr. Smith had violated the terms of the permanent injunction and entered its final order and judgment of contempt against him. In this original proceeding, Dr. Smith challenges the trial court’s final order and judgment of contempt.

The 2003 Suit and Judgment

Dr. Smith began his employment with EPII in 1998. At that time, Dr. Smith and EPII entered into a Non-Disclosure/Non-Cireumvention Agreement. The agreement contained a “Restrictive Covenant” in which Dr. Smith agreed that, during or after the term of his employment, he would not, among other things, “disclose, disseminate, publish, or use ... [EPII’s] *910 Confidential Information, ... except as may be required in the proper discharge of [his] duties pursuant to [his] employment.” As defined in the agreement, the term “Confidential Information” included information “disclosed to [Dr. Smith] or known by [Dr. Smith] as a consequence of or through [his] employment by EPII which information is not generally known in the industry in which EPII is or may become engaged.” The agreement provided that, upon the termination of Dr. Smith’s employment, (1) Dr. Smith would return all confidential information and customer lists to EPII, (2) EPII would be entitled to injunctive relief against Dr. Smith if he breached the restrictive covenant, and (8) Dr. Smith would not enter into or engage in any business in competition with EPII for a period of three years from the date of his termination.

Dr. Smith’s employment duties included writing items for publication on behalf of EPII. At EPII’s request, Smith began writing a manuscript that was entitled Cranial Electrotherapy Comes of Age. Before the manuscript was completed, EPII discovered facts leading it to conclude that Dr. Smith had breached the Non-Disclosure/Non-Circumvention Agreement. Therefore, EPII terminated Dr. Smith’s employment.

On February 7, 2003, EPII filed suit against Dr. Smith for breach of the agreement. In its petition, EPII requested the trial court to enjoin Dr. Smith from “disclosing, publishing, and/or using [its] confidential information and trade secrets” and from “competing with EPII or participating in business in a similar capacity to EPII’s business for a period of three years from the date of the termination of [Dr.] Smith’s employment.”

Following a bench trial, the trial court concluded that Dr. Smith had breached the agreement. On August 11, 2003, the trial court entered a judgment in EPII’s favor. In the judgment, the trial court found that, unless permanently enjoined, “[Dr. Smith] intends to directly or indirectly participate in business in a similar capacity to EPII’s business in violation of the non-competition provisions of his Non-Disclosure/Non-Circumvention Agreement” and “[Dr. Smith] intends to disclose, disseminate, publish, or use or permit the use, of [EPII’s] business information in violation of the Non-Disclosure/N on-Circumvention Agreement.” Therefore, the trial court granted injunc-tive relief in EPII’s favor and ordered the following:

[T]hat [Dr. Smith] ... desist and refrain from directly or indirectly entering into or engaging in any business in competition with [EPII] ... through January 31, 2006. 1
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... THAT [Dr. Smith] ... desist and refrain from ... disclosing, disseminating, lecturing upon, publishing, using or permitting the disclosure, dissemination, publishing or use of any and all information disclosed to [him] or known by [him] as a consequence or through his employment by [EPII] which information is not generally known in the indus *911 try in which [EPII] is engaged or may become engaged.... 2
... [T]hat [Dr. Smith] ... return any and all copies ... of all unpublished manuscripts, monologues, articles, books and studies, whether in draft or final form, that were written on the subject of CES, TENS, and/or wound healing while an employee of [EPII] or thereafter, including, but not limited to, all copies of “Cranial Electrotherapy Comes of Age.” The Court finds that all manuscripts, monologues, articles, books and studies written by [Dr. Smith] on the subject of CES, TENS and/or wound healing during or after his employment with [EPII] are the property of [EPII] and [Dr. Smith] may not disclose, disseminate, lecture upon, publish, use or permit the disclosure, dissemination, publication or use of any of the materials listed above.

In addition to granting injunctive relief, the trial court awarded attorney’s fees to EPII. The trial court entered findings of fact and conclusions of law in support of its judgment. In one finding of fact, the trial court stated that, under the Non-Disclosure/Non-Circumvention Agreement, “in exchange for EPII providing Smith with confidential business information, Smith agreed not to disclose such confidential business information during or after his employment with EPII.”

Dr. Smith appealed the trial court’s 2003 judgment to this court. In a single point of error, Dr. Smith contended that the trial court lacked subject-matter jurisdiction over EPII’s claims because the claims were copyright claims that fell within the exclusive jurisdiction of the federal courts. We disagreed with Dr. Smith, and we affirmed the trial court’s judgment. See Smith v. Electromedical Prods. Int'l, Inc., No. 11-03-00386-CV, 2005 WL 1983550 (Tex.App.-Eastland Aug. 18, 2005, no pet.) (mem.op.).

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Bluebook (online)
310 S.W.3d 908, 2010 Tex. App. LEXIS 3148, 2010 WL 1713996, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-smith-texapp-2010.