Murray v. EPIC ENERGY RESOURCES, INC.

300 S.W.3d 461, 2009 Tex. App. LEXIS 8505, 2009 WL 3644937
CourtCourt of Appeals of Texas
DecidedNovember 5, 2009
Docket09-09-00052-CV, 09-09-00127-CV
StatusPublished
Cited by5 cases

This text of 300 S.W.3d 461 (Murray v. EPIC ENERGY RESOURCES, 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
Murray v. EPIC ENERGY RESOURCES, INC., 300 S.W.3d 461, 2009 Tex. App. LEXIS 8505, 2009 WL 3644937 (Tex. Ct. App. 2009).

Opinions

OPINION

STEVE McKEITHEN, Chief Justice.

Appellant Patrick W. Murray, Jr. filed an interlocutory appeal from the trial court’s orders denying his special appearance, temporarily enjoining him, denying his motion to compel arbitration, and abating a pending arbitration between Murray and his former employer, appellee Epic Energy Resources, Inc. (“Epic”). Murray also filed a petition for writ of mandamus, in which he also argues that the trial court abused its discretion by denying his motion to compel arbitration, by abating the pending arbitration, and “not ordering the parties[ ] to arbitrate the issues which clearly fall within the arbitration provision.” We affirm the trial court’s order denying Murray’s special appearance, reverse the trial court’s temporary injunction order, and deny the petition for writ of mandamus.

Background

Murray entered into an employment agreement with Epic 1 a company located in The Woodlands, Texas.2 The agreement provided that Epic could terminate Murray immediately for good cause, “without any further liability to” Murray. According to the terms of the agreement, if Epic terminated Murray’s employment without good cause, Murray would receive severance pay from Epic.

The agreement also stated that Epic would provide confidential information, and Murray agreed that both during and after his employment with Epic, he would “not directly or indirectly disclose any [cjonfidential [i]nformation[.]” The agreement expansively defined “[cjonfidential [ijnformation” as:

information pertaining to, but not limited to: customer lists, bid policies and practices, pricing information, financial and other data, contract information, employee lists, manuals, documentation, forms, contracts, agreements, literature, sources of supply, specifications, techniques, engineering, training methods, procedures, systems, data, computer software programs, source codes, hardware development, plans, processes, inventions, discoveries, proprietary technology, methods, trademarks, trade secrets, know-how, corporate books and records, other information concerning [Epic’s] business or assets or financial condition and evaluations and use or [465]*465non-use of other technical or business information not in the public domain and research projects and customer-specific information disclosed to [Murray] by [Epic] which is not generally known to the public.

In addition, the agreement contained a non-competition provision, which provided as follows, in pertinent part:

[Murray] acknowledges and agrees that as an employee and representative of [Epic], [Murray] will be responsible for building and maintaining business relationships and goodwill with current and future customers, clients, and prospects on a personal level....
In consideration for the valuable consideration described above, [Murray] acknowledges and agrees that for a period commencing upon [his] termination of employment from [Epic] for any reason, and ending on the earlier of: (I) twenty-four (24) months following the termination of this Agreement; (ii) the expiration of the Initial Term ... or (iii) the expiration of the then-current Renewal Term ... (hereinafter, the “Lock Out Period”), [Murray] will not solicit with any person, company, or business that was or is a client, Customer, or prospect of [Epic] (“Restricted Customer”). A person or entity is considered to be a Restricted Customer if [Epic] has taken steps with the direct objective of obtaining business specifically from such person or entity after [Epic] has made a formal proposal or presentation to such person or entity, which may, but need not, include negotiations with such person or entity. [Murray] further acknowledges and agrees that during the Lock Out Period, [he] will not engage in the Same or a Similar Business as [Epic], including working for any company or business as an agent, consultant, partner, employee, officer, shareholder or independent contractor (but excluding any client or Customer of [Epic]), in the Market Area....

In addition, the agreement contained a provision which required that “[a]ny claim or controversy arising out of or relating to this Agreement, or any breach of this Agreement, shall be settled by final and binding arbitration in Montgomery County, Texas[.]” However, the agreement also specified that “nothing in this Agreement shall be construed to require the arbitration of any claim arising out of or relating to the Non-Disclosure, Non-competition or Non-Interference provisions set forth in this Agreement. These provisions shall be enforceable by any Court of competent jurisdiction and shall not be subject to arbitration under this section.” Moreover, the agreement contained a choice of law provision, which stated, “[t]he parties acknowledge and agree that the law of Texas will govern the validity, interpretation, and effect of this Agreement and dispute[s] relating to, or arising out of, the employment relationship between [Epic] and [Murray].”

On May 27, 2008, Epic terminated Murray for cause, and on July 24, 2008, Murray filed a demand for arbitration.3 In his demand for arbitration, Murray asserted that Epic had provided no legitimate basis for his “for cause” termination, and he sought severance benefits. The case was scheduled for arbitration on January 5, 2009. However, on December 30, 2008, Epic filed a lawsuit against Murray in Montgomery County, Texas. In its lawsuit, Epic asserted claims against Murray for breach of the non-disclosure and non-competition provisions of the employment agreement, as well as misappropriation of [466]*466trade secrets, breach of fiduciary duty, and tortious interference with existing and prospective contracts. Epic also sought a temporary restraining order and a temporary injunction.

Murray filed a special appearance, in which he asserted that he was a resident of Colorado and that the District Court in Montgomery County, Texas lacked personal jurisdiction over him. In support of his special appearance, Murray attached his affidavit, in which he averred, among other things, that he has never worked in Texas; Epic is a Colorado corporation; he signed the employment agreement outside Texas; he worked for Pearl only in Colorado; his paychecks were made from Pearl accounts located outside Texas; and his employment benefits were administered from offices in Colorado. Murray also averred in the affidavit that during his employment, he traveled to Texas to meet with clients or for management meetings on four occasions. Murray maintained that it would be unduly burdensome for him to litigate in Texas.

Epic filed a response to Murray’s special appearance, in which it argued that the trial court could exercise both general and specific jurisdiction over Murray. Epic also argued that Murray had “waived his Special Appearance by initiating arbitration proceedings in Montgomery County.” Epic contended that the trial court had specific jurisdiction over Murray because Murray did the following: negotiated the terms of his employment with Epic’s representatives in Texas; entered into an employment agreement with a Texas resident; agreed that Texas law governs the Agreement; traveled to Texas several times during his seven months of employment with Epic; regularly reported to and worked under the direction of Epic’s CEO and President, both of whom worked in Epic’s main office in Texas; and demanded arbitration in Texas.

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Murray v. EPIC ENERGY RESOURCES, INC.
300 S.W.3d 461 (Court of Appeals of Texas, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
300 S.W.3d 461, 2009 Tex. App. LEXIS 8505, 2009 WL 3644937, Counsel Stack Legal Research, https://law.counselstack.com/opinion/murray-v-epic-energy-resources-inc-texapp-2009.