Pro Mineral Partners LLC v. Marietta

CourtDistrict Court, N.D. Texas
DecidedMarch 8, 2023
Docket3:21-cv-02773
StatusUnknown

This text of Pro Mineral Partners LLC v. Marietta (Pro Mineral Partners LLC v. Marietta) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pro Mineral Partners LLC v. Marietta, (N.D. Tex. 2023).

Opinion

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

PRO MINERAL, LLC and § PRO MINERAL PARTNERS, LLC, § § Plaintiffs, § § Civil Action No. 3:21-CV-02773-E v. § § ANDREW MARIETTA, VIRGINIA PORTER § ALLEN, BENJAMIN ALLEN III and § HYDROCARBON RESOURCES, L.P., § § Defendants. §

MEMORANDUM OPINION AND ORDER Before the Court is Defendants’ 12(b)(6) Motion to Dismiss Plaintiffs’ First Amended Complaint (Defendants’ Motion). (Doc. 23). After review of the relevant filings and applicable law, the Court finds and concludes that the Motion is GRANTED only as to (i) Plaintiffs’ claims for civil conspiracy and breach of fiduciary duty and (ii) Plaintiffs’ declaratory judgment claim. Otherwise, the Motion is DENIED as to Plaintiffs’ remaining claims. I. BACKGROUND Plaintiffs initiated this litigation on November 9, 2021. (Doc. 1). As amended1, Plaintiffs have asserted claims (i) for misappropriation of trade secrets under the Defend Trade Secrets Act (DTSA); (ii) for breach of contract; (iii) for civil conspiracy; (iv) for misappropriation of trade secrets under Texas Uniform Trade Secrets Act (TUTSA); and (vi) for declaratory judgment. (Doc. 17 at 12-20).

1 Plaintiffs filed their First Amended Complaint on March 7, 2022. (Doc. 17). Defendants Virginia Porter Allen (Virginia Allen) and Andrew Marietta previously worked at Pro Mineral Partners, LLC (Pro Mineral) as landmen. (Doc. 17 at 4). Plaintiffs allege that, prior to beginning work, Marietta and Virginia Allen entered “non-compete/non-disclosure agreements,” which “regulat[ed] the use of confidential information that that Virginia Allen and

Marietta came to possess as part of their work for Pro Mineral.” (Doc. 17 at 4-5). Plaintiff alleges that—while employed at Pro Mineral—Marietta and Virginia Allen: were variously assigned to research title for potential oil and gas lease deals to be entered into by Pro Mineral, buy leases from the landowners, and negotiate the prices and lease terms. As part of these job responsibilities, Virginia Allen and Marietta were aware of certain properties that Pro Mineral was researching and planned to execute oil and gas leases. Specifically, Pro Mineral had assigned Virginia Allen and Marietta to research title in McIntosh County, Oklahoma, among other places. In addition to the locations of properties that Pro Mineral was researching and planned to execute leases, Pro Mineral also divulged, as part of their work, confidential business plans, information learned from operators and producers in the oil and gas field, contact information for potential customers, and previous title and other research done as part of Pro Mineral’s business.

(Doc. 17 at 5). Marietta and Virginia Allen resigned from employment with Pro Mineral on May 20 and 21, 2019, respectively. (Doc. 17 at 4). Plaintiffs allege that Marietta and Virginia Allen disclosed trade secrets and confidential business information to Defendants Benjamin Allen III2 and Hydrocarbon Resources, L.P. (HRLP). (Doc. 17 at 6-12). Plaintiffs allege Defendants worked in concert to execute oil and gas leases on “at least 13” tracts in Oklahoma—”in the exact tracts that Pro Mineral had instructed [Virginia] Allen and Marietta to research.” (Doc. 17 at 6). Defendants moved to dismiss Plaintiffs’ First Amended Complaint. (Doc. 23). Plaintiffs have responded, (Doc. 26), and Defendants have submitted a reply. (Doc. 27). Having been fully briefed, Defendant’s Motion is ripe for consideration.

2 Plaintiff alleges Benjamin Allen III is Virginia Allen’s father. (Doc. 17 at 12). II. LEGAL STANDARD Under Federal Rule of Civil Procedure 8(a)(2), a complaint must contain “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R. Civ. P. 8(a)(2). Rule 12(b)(6) authorizes a court to dismiss a plaintiff’s complaint for “failure to state a claim upon

which relief can be granted.” Fed. R. Civ. P. 12(b)(6). In considering a Rule 12(b)(6) motion to dismiss, “[t]he court accepts all well-pleaded facts as true, viewing them in the light most favorable to the plaintiff.” In re Katrina Canal Breaches Litig., 495 F.3d 191, 205 (5th Cir. 2007) (internal quotation marks and citations omitted). To survive a Rule 12(b)(6) motion to dismiss, a plaintiff must plead “enough facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). “Threadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). A claim is facially plausible if the plaintiff “pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. “The plausibility standard

. . . asks for more than a sheer possibility that a defendant has acted unlawfully.” Iqbal, 556 U.S. at 678. Thus, a claim “is implausible on its face when ‘the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct.’” Harold H. Huggins Realty, Inc. v. FNC, Inc., 634 F.3d 787, 796 (5th Cir. 2011) (quoting Iqbal, 556 U.S. at 679); see also Inclusive Communities Project, Inc. v. Lincoln Prop. Co., 920 F.3d 890, 899 (5th Cir. 2019). III. ANALYSIS A. Claims Under the DTSA and TUTSA (Counts 1 and 4) “Because the DTSA and TUTSA are both based on the Uniform Trade Secrets Act, ‘a substantial number of provisions in the two statutes—including the definition of ‘trade secret’— are either identical or very similar in many respects.’” DBG Group Investments, LLC V. Puradigm, LLC, No. 3:21-CV-678-S, 2022 WL 313435, at *2 (N.D. Tex. Feb. 2, 2022) (quoting Phazr, Inc. v. Ramakrishna, No. 3:19-CV-01188-X, 2020 WL 5526554, at *3 (N.D. Tex. Sept. 14, 2020) (internal quotation omitted)). Furthermore, as pled, the alleged trade secrets at issue in Plaintiff’s

claims under the DTSA and TUTSA are the same. For those reasons, the Court addresses Defendants’ Motion—seeking to dismiss the DTSA and TUTSA claims—jointly. To state a DTSA claim, “a plaintiff must allege: (1) a trade secret; (2) misappropriation; and (3) use in interstate commerce.” Phazr, 2020 WL 5526554, at *3 (quoting Marek Bro. Sys., Inc. v. Enriquez, No. 3:19-CV-01082, 2019 WL 3322162, at *3 (N.D. Tex. July 24, 2019)) (internal quotation marks omitted). TUTSA requires a similar showing of the existence of a trade secret that was misappropriated but does not require use in interstate commerce. See TEX. CIV. PRAC. & REM. CODE §§ 134A.002, 134A.004.3 The DTSA and TUTSA both define “trade secret” to include scientific and technical information, such as “any formula [or] design,” that (1) the owner has taken reasonable measures

to keep secret and (2) derives independent economic value from not being generally known or readily ascertainable through proper means. See 18 U.S.C. § 1839(3); TEX. CIV. PRAC. & REM. § 134a.002(6). “Whether a trade secret exists is a question of fact.” GlobeRanger Corp. v.

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Pro Mineral Partners LLC v. Marietta, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pro-mineral-partners-llc-v-marietta-txnd-2023.