Pipeline Supply & Service, LLC v. Russell Newman

CourtDistrict Court, S.D. Texas
DecidedMarch 9, 2026
Docket4:25-cv-03719
StatusUnknown

This text of Pipeline Supply & Service, LLC v. Russell Newman (Pipeline Supply & Service, LLC v. Russell Newman) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pipeline Supply & Service, LLC v. Russell Newman, (S.D. Tex. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT March 09, 2026 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

PIPELINE SUPPLY & SERVICE, LLC, § § Plaintiff, § v. § CIVIL ACTION NO. H-25-3719 § RUSSELL NEWMAN, § § Defendant. §

MEMORANDUM AND OPINION The plaintiff, Pipeline Supply & Service, LLC, sued a former employee, Russell Newman, for anticipatory breach of contract. (Docket Entry No. 1-5). Newman filed a motion to dismiss for lack of personal jurisdiction or, in the alternative, to transfer venue. (Docket Entry No. 5). He also filed a motion to dismiss for failure to state a claim under Rule 12(b)(6). (Docket Entry No. 7). The court treated the motion to dismiss as one for summary judgment and allowed additional submissions. (Docket Entry No. 15). Based on the motions, the record, and the applicable law, the court denies the motion to dismiss for lack of personal jurisdiction and grants the motion for summary judgment. The reasons for this ruling are below. I. Background Pipeline Supply hired Newman in February 2018. (Docket Entry No. 7-1 ¶ 5). Newman is from Louisiana, has lived at the same address in Louisiana since 2004, and has never owned property in Texas. (Id. ¶¶ 2–4). Turner Industries, which is headquartered in Louisiana, has been a customer of Newman’s since at least 2002. (Id. ¶¶ 7, 8). Newman alleges that Pipeline Supply hired him because of his preexisting relationship with Turner. (Id. ¶ 6). Newman’s main point of contact at Turner “was and is” located at Turner’s headquarters in Baton Rouge, Louisiana. (Id. ¶ 8). Newman alleges that he negotiated and signed his employment contract with Pipeline Supply in Louisiana; that throughout his employment, he worked out of the Louisiana Pipeline Supply branch office located in St. Gabriel, Louisiana; and that he submitted his notice of resignation from Louisiana. Newman now works for Allredi, a Texas company, in Louisiana. (Id. ¶ 10–13). As a condition of his employment with Pipeline Supply, Newman executed the “Pipeline

Supply & Service, LLC Proprietary Information Agreement.” (Docket Entry No. 1-5 ¶ 5.3). The Agreement contains—in Pipeline Supply’s own words—“restrictive covenants, namely a non- solicitation provision, prohibiting certain post-employment competitive activity following termination of Newman’s employment with” Pipeline Supply. (Id.). The relevant provision, Section 5, reads as follows: Section 5. OTHER ACTIVITIES; CONFLICTS OF INTEREST. 5.1 Non-Solicitation. In consideration of the Company’s promise to provide Proprietary Information to me, and so as to enforce my agreement regarding such Proprietary Information contained in Section 3 above, I agree that while employed by the Company and for a period of one year after the termination of my employment with the Company for any reason, I will not, directly or indirectly, for my benefit or for the benefit of another, without the Company’s prior written consent:

[ . . .]

(b) solicit or encourage any existing, former or prospective customer or supplier of the Company with whom I had contact as an employee of the Company or about whom I had Proprietary Information, or use any Proprietary Information to solicit or encourage any existing, former or prospective customer or supplier of the Company, to terminate its relationship with the Company or become a customer or supplier of another entity if such other entity offers products or services which are or may be competitive with those offered by the Company [ . . .]

(Docket Entry No. 7-2 at 4). The Agreement also contains a choice-of-law and venue provision. The provision reads as follows:

2 Section 9. MISCELLANEOUS

9.3 Any dispute in the meaning, effect, or validity of this Agreement will be resolved in accordance only with the laws of the State of Texas without regard to the conflict of laws provisions of the State of Texas. I agree that venue for litigation involving the enforcement of this Agreement or any rights, duties, or obligations under this Agreement, whether brought by me or the Company, shall be in Texas state court in Houston, Texas, or in a United States District Court located in Houston, Texas, and I expressly consent to the exclusive jurisdiction of such courts.

(Id. at 6).

On July 1, 2025, Newman submitted his notice of resignation. (Docket Entry No. 5-1 ¶ 13). Two days later, he talked to Clay Meredith, Pipeline Supply’s Vice President of Sales and Operations. (Id.). Pipeline Supply’s complaint alleges that Newman “met” with Meredith, (Docket Entry No. 1-5 ¶ 5.7), but Newman clarifies in his declaration that this meeting was actually a phone call that he participated in from his home in Louisiana. (Docket Entry No. 5-1 ¶ 14). Pipeline Supply alleges that during the meeting, Meredith reminded Newman of the terms of the Agreement, including the one-year non-solicitation provision. (Docket Entry No. 1-5 ¶ 5.7). Pipeline Supply alleges that Newman then stated, “I will make sure that Turner doesn’t buy another f***ing thing from [Pipeline Supply] and you will get stuck with all the inventory.” (Id. ¶ 5.8). Pipeline Supply sued Newman in state court for anticipatory breach of contract, for a temporary restraining order, and for a permanent injunction. (Docket Entry Nos. 1-5, 1-7). The state court denied Pipeline Supply’s motion for a temporary restraining order. (Docket Entry No. 1 ¶ 3; Docket Entry No. 1-8). Newman removed to this court. (Docket Entry No. 1). He then filed a motion to dismiss for lack of personal jurisdiction or, in the alternative, motion to transfer venue, (Docket Entry No, 5), and a motion to dismiss under Rule 12(b)(6), (Docket Entry No. 7). At an initial conference, this court heard oral argument on whether Texas or Louisiana law applied. (Docket Entry No. 15). The court stated that it would treat the motion to dismiss as a motion for summary judgment and allowed the parties to file additional submissions. (Id.). 3 II. Analysis A. The Motion to Dismiss or in the Alternative, the Motion to Transfer Venue The first of Newman’s two pending motions is his motion to dismiss for lack of personal jurisdiction or in the alternative, motion to transfer venue. (Docket Entry No. 5). He argues that the forum-selection clause in the Agreement does not establish personal jurisdiction over him in a

Texas court because that provision applies only to litigation to enforce the Agreement or the rights, duties, or obligations under the Agreement, and this case does not fall into either category. (Id. at 9). He argues that without the forum-selection clause, he is not subject to either general or specific personal jurisdiction in Texas because he is a Louisiana resident and the case arises from actions taken in Louisiana. (See generally id.). “Personal jurisdiction can be waived by an enforceable forum selection clause in which the parties consent to personal jurisdiction in a specific forum.” Bar Grp., LLC v. Business Intelligence Advisors, Inc., 215 F. Supp. 3d 524, 538 (S.D. Tex. 2017) (citing Burger King Corp. v. Rudzewicz, 471 U.S. 462, 473 n.14 (1985)). In the Fifth Circuit, “even in diversity cases, federal

law governs the ‘enforceability’ of forum-selection clauses.” Barnett v. DunCorp Int’l, L.L.C., 831 F.3d 296, 301 (5th Cir. 2016). A forum-selection clause is prima facie valid and enforceable unless the opposing party shows that enforcement would be unreasonable. See Int’l Software Sys., Inc. v. Amplicon, Inc., 77 F.3d 112, 114 (5th Cir. 1996).

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Pipeline Supply & Service, LLC v. Russell Newman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pipeline-supply-service-llc-v-russell-newman-txsd-2026.