RSM Production Corporation and Jack Grynberg v. Global Petroleum Group, Ltd.

Court of Appeals of Texas·Decided June 29, 2021·No. 01-19-00474-CV·Published

Opinion

Opinion issued June 29, 2021

In The

Court of Appeals

For The

First District of Texas

appeal, this Court affirmed the trial court’s order granting the special appearance of Global, one of several defendants in the underlying litigation, and held that Texas courts lack personal jurisdiction over Global for RSM’s claims of misappropriation of trade secrets. The Texas Supreme Court denied RSM’s petition for review.

The case proceeded in the trial court against the remaining defendants. After further discovery, RSM filed a motion to reconsider the grant of Global’s special appearance. The trial court denied the motion. In a single issue with two subparts, RSM argues that the law-of-the-case doctrine does not bar the trial court and this Court from reconsidering the jurisdictional issue because (1) RSM has new evidence undermining our prior opinion, and (2) our prior opinion improperly resolved an issue on the merits of RSM’s misappropriation claims against Global. We affirm.

Background

The background and procedure of this case leading up to the trial court’s order sustaining Global’s special appearance were set forth in our prior opinion. We discuss the facts from our prior opinion as they are relevant to our analysis of RSM’s issues in this appeal. See generally RSM Prod. Corp. v. Global Petroleum Grp., Ltd., 507 S.W.3d 383 (Tex. App.—Houston [1st Dist.] 2016, pet. denied).

This case arises from the alleged misappropriation of RSM’s trade secrets by Global and other defendants who are not parties to this appeal. Id. at 387. Grynberg, a Colorado resident, spent twenty-five years and several million dollars exploring

for oil and gas reserves off the coast of Grenada and gathering 2D seismic data. Id. at 386–87. He used the data to create a report and formed RSM Production Corp., a corporation registered in Texas with its principal place of business in Colorado, to contract with the Grenadian government to further explore the area. Id. A. Global’s Special Appearance and This Court’s Prior Opinion RSM sued Global and others in the underlying lawsuit, alleging that Global misappropriated RSM’s seismic data and used it to develop Grenadian offshore oil and gas reserves under a license from the Grenadian government. Id. RSM alleged that it had approached British Petroleum Exploration Co. (“BPX”), a British company, about collaborating in developing Grenada’s offshore oil and gas reserves. According to RSM, BPX copied RSM’s seismic data without Grynberg’s knowledge or permission. Id. RSM further alleged that Global obtained RSM’s seismic data from BPX or its affiliate without Grynberg’s permission in 2008 and then used the data to explore and develop the Grenadian offshore oil and gas reserves in 2013. Id. RSM also alleged that Global disseminated RSM’s data to other companies for the commercial purpose of exploring the reserves. Id.

Global filed a special appearance and a plea to the jurisdiction.1 Id. It asserted with supporting declarations that it is not a Texas entity; that it had no offices,

1 All references to Global’s special appearance are to its third amended special appearance, which was the pleading on file at the time of the trial court’s ruling.

employees, assets, or registered agents in Texas; and that it did not conduct business or advertise in Texas. Id. at 387–88. It also asserted that RSM had not identified any contacts between Global and third-party companies that were adequately connected to RSM’s claims of misappropriation against Global. Id. at 388. Rather, Global argued that it obtained an exploration license from the Grenadian government in Grenada in 2008 so it could explore offshore hydrocarbon potential. Id. Global conceded that it had received “certain vintage 2D seismic data,” some of which included RSM’s allegedly proprietary data, in Grenada from the Grenadian government with its exploration license. Id. Global’s Grenada project was halted from 2008 to 2013 for political reasons. Id.

When the project was reinstated, Global contracted with Tricon Geophysics, Inc. (“Tricon”). Tricon is a Colorado company with its principal place of business in Colorado and with other offices in Grenada, Venezuela, and Houston, Texas. Id. at 387–88. Specifically, Global contracted with Tricon in Tricon’s Venezuela office to process and interpret previously acquired vintage 2D seismic data. That data included government-provided data, part of which was RSM’s data, as well as data that Global obtained from at least two other sources. Id. at 388, 394–95. As part of the contract, Global sent Tricon a digital copy of the data, including RSM’s data, to Tricon’s offices in Grenada and Venezuela. Id. at 388. Tricon subcontracted part of the interpretation of Global’s data to a third party, Houston-based Interactive

Exploration Solutions, Inc. (“INEXS”). Id. Tricon sent INEXS some of the processed 2D data to INEXS in Houston. Id. Tricon then provided Global with a report generated from the 2D seismic data that included some limited use of the vintage 2D data obtained from the Grenadian government. Id. at 394–95.

Dan Ward, INEXS’s vice president of operations, provided a declaration in September 2014 in support of Global’s special appearance. Id. at 389. Ward averred that Tricon retained INEXS to interpret certain 2D seismic data processed by Tricon, but INEXS could not interpret portions of the digital data that Tricon sent to it. INEXS therefore requested access to the original paper data from Tricon. Id. Tricon sent some paper data to INEXS in Houston, and Ward recalled that one of the paper sections was marked “GRYNBERG-1.” Id. Ward stated, however, that due to the age of the data and “navigational problems associated with the seismic lines,” none of RSM’s seismic data was usable: the data was “of no value to the interpretation and mapping work performed by INEXS.” Id.

RSM responded to Global’s special appearance, asserting that Global had extensive contacts in Texas. Id. RSM argued that Global sent seismic data to Tricon, which used the data and then passed it on to INEXS in Houston to interpret. Id. Additionally, it argued that Global contracted with other Texas companies to further explore in Grenada, including by collecting new 3D seismic data that was based on Tricon’s and INEXS’s processing and interpreting of Global’s vintage 2D seismic

data, some of which included RSM’s data. Id. RSM contended that Global had meetings with, made phone calls to, and sent emails to these companies in Texas. Id.

RSM’s response attached a deposition of Marco Angeli, a consultant for Global who oversaw Global’s Grenadian development project. Id. at 388, 389. Angeli testified that Global’s work was mostly completed through contractors located in Venezuela, such as Tricon. Id. at 389–90. He said that Global obtained seismic data for its Grenadian project from many sources. Id. at 390. In addition to the data that Global received from the Grenadian government, some of which included RSM’s data, Global obtained other 2D data from third parties under licensing agreements. Id.

Angeli testified that the government-provided vintage 2D data that included some of RSM’s data was of “very limited” use and that Global had to obtain additional data from other entities. Id. RSM’s counsel asked, “But they were useful?” Angeli responded, “In a way, yes, because it was integrated into the whole picture.” Id. Angeli also testified that INEXS received some 2D seismic data in Houston from Tricon. Global’s emails indicated that paper copies of a portion of RSM’s seismic data were located in Houston for at least some period of time. Id. Angeli testified that, after RSM filed suit, he collected that data and returned it to Grenada in January 2014. Id.

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RSM Production Corporation and Jack Grynberg v. Global Petroleum Group, Ltd., (Tex. Ct. App. 2021).

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