Twister B v. v. Newton Research Partners, LP

364 S.W.3d 428, 2012 Tex. App. LEXIS 2833, 2012 WL 1202182
CourtCourt of Appeals of Texas
DecidedApril 11, 2012
Docket05-11-00409-CV
StatusPublished
Cited by22 cases

This text of 364 S.W.3d 428 (Twister B v. v. Newton Research Partners, LP) 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
Twister B v. v. Newton Research Partners, LP, 364 S.W.3d 428, 2012 Tex. App. LEXIS 2833, 2012 WL 1202182 (Tex. Ct. App. 2012).

Opinion

OPINION

Opinion By

Justice MURPHY.

Twister B.V. appeals the trial court’s order denying its special appearance in a theft of trade secrets suit filed against it by Newton Research Partners, LP. See Tex. Civ. Prac. & Rem.Code Ann. § 51.014(a)(7) (West 2008) (interlocutory appeal). We affirm.

BACKGROUND

Both Twister and Newton are involved in the business of natural gas processing. Twister is a Dutch private limited liability company located in the Netherlands town of Rijswijk. Twister was formed in 2001 by Shell International Exploration and Production B.V., a company of the Royal Dutch/Shell Group of Companies and an investment partner to “market innovative gas processing technologies to the global exploration and production market.” One of Twister’s products is a supersonic separator, which separates hydrocarbon liquids and water from natural gas. Twister’s gas-processing technology was developed by Shell International and transferred to Twister at the time of its incorporation. A Shell International employee involved in the development of the technology, Cornel-ls Antonie “Kees” Tjeenk Willink, became Twister’s Chief Executive Officer.

Newton, a Texas limited partnership, owns what it claims are confidential and proprietary trade secrets related to natural gas processing. The alleged trade secrets were developed by Michael Bloom and concerned technology used to separate and remove contaminants from natural gas. For descriptive purposes only, this information is referenced simply as the “trade secrets.” Bloom was a limited partner in Newton and manager of Newton’s general partner, Newton Research, LLC. Newton obtained ownership of the trade secrets through a series of assignments and agreements.

In 1997, Bloom disclosed the trade secrets to Shell E & P Technology Corporation, a division of Shell Exploration & Production Company, under a promise of confidentiality. According to Newton, Shell Exploration later violated that promise and shared the trade secrets with a Shell affiliate in the Netherlands and others, including Twister. Newton claims Twister then unlawfully used Newton’s trade secrets in Twister’s gas-separation products and that Twister marketed and sold those products in Texas and elsewhere.

Newton filed suit against Twister and other defendants 1 in 2007, charging them with, among other things, stealing New *433 ton’s trade secrets and violating the Texas Theft Liability Act. See Tex. Civ. Prag. & Rem.Code Ann. §§ 134.002(2), 134.003(a) (West 2011) (providing for civil liability for certain acts proscribed by the penal code, including theft of trade secrets). Newton also charged Shell Exploration with breaking contractual promises of confidentiality and breaching its fiduciary duty to Newton by unlawfully misappropriating Newton’s trade secrets.

In response, Twister filed a special appearance with a supporting affidavit from Tjeenk Willink, who at that time was Twister’s CEO and Chief Technology Officer. Tjeenk Willink stated in his affidavit that the technology used in Twister’s gas-separation products was not derived from Newton’s trade secrets; rather, it was based on technology developed by another company. Newton’s response to Twister’s special appearance included an affidavit from Bloom, as well as other documentary evidence. Bloom stated that after reviewing certain documents related to Twister’s technology and products, he concluded the technology he developed and disclosed to Shell Exploration was being used by Twister in its products. Newton’s other evidence related to Twister’s marketing and product sales in Texas. Twister later filed an amended special appearance with a supplemental affidavit from Tjeenk Wil-link in which he explained the extent of Twister’s marketing and sales projects in Texas.

The trial court heard argument on the special appearance in October 2008. The parties relied on their documents on file and offered no live testimony; thus, the record consists of the affidavits and other documents attached to the special appearance and response. The trial court did not rule on Twister’s special appearance at this hearing or at a second special appearance hearing held one year after the first. 2 Nearly a year and a half later, in March 2011, the trial court orally denied Twister’s special appearance at a hearing on a motion to modify a prior discovery order. The trial court subsequently signed its order denying Twister’s first amended special appearance on March 30, 2011. The trial court did not specify the basis for its ruling in the order and did not issue fact-findings or legal conclusions.

DISCUSSION

Twister asserts in its sole issue on appeal that it is not subject to personal jurisdiction in Texas and the trial court therefore erred in denying its special appearance. The question of whether a trial court has personal jurisdiction over a nonresident defendant is one of law that we review de novo. Kelly v. Gen. Interior Constr., Inc., 301 S.W.3d 653, 657 (Tex.2010). When, as here, the trial court does not issue findings of fact or conclusions of law in support of its special appearance ruling, all facts necessary to support the judgment and supported by the evidence are implied. Moki Mac River Expeditions v. Drugg, 221 S.W.3d 569, 574 (Tex.2007); BMC Software Belg., N.V. v. Marchand, 83 S.W.3d 789, 795 (Tex.2002). When the appellate record includes the clerk’s and reporter’s records, the trial court’s implied findings are not conclusive and may be challenged for legal and factual sufficiency on appeal. BMC Software, 83 S.W.3d at 795. In a legal sufficiency review, the challenge fails if more than a scintilla of *434 evidence supports the factual finding. Id. We review de novo a trial court’s legal conclusions. Id. at 794.

Personal Jurisdiction Requirements

Texas courts may exercise personal jurisdiction over a nonresident defendant if (1) the Texas long-arm statute permits the exercise of jurisdiction and (2) the assertion of jurisdiction is consistent with federal and state constitutional due process guarantees. Kelly, 301 S.W.3d at 657. The requirements of the Texas long-arm statute are considered satisfied if the exercise of personal jurisdiction comports with federal due process limitations. Id. Thus, in practice, the two conditions are conflated into one requirement of due process. See Spir Star AG v. Kimich, 310 S.W.3d 868, 872 (Tex.2010); Delta Brands, Inc. v. Rautaruukki Steel, 118 S.W.3d 506, 510 (Tex.App.-Dallas 2003, pet. denied).

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Cite This Page — Counsel Stack

Bluebook (online)
364 S.W.3d 428, 2012 Tex. App. LEXIS 2833, 2012 WL 1202182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/twister-b-v-v-newton-research-partners-lp-texapp-2012.