FILED IN BUSINESS COURT OF TEXAS BEVERLY CRUMLEY, CLERK ENTERED 2026 Tex. Bus. 31 5/20/2026
The Business Court of Texas, Eleventh Division
UNIMACTS GLOBAL, LLC, § ZETWERK MANUFACTURING US § INC., and ZETWERK § MANUFACTURING BUSINESS § Cause No. 25-BC11A-0083 PRIVATE LIMITED, § § Plaintiffs, § § v. § AYR ENERGY INC., § § Defendant.
═══════════════════════════════════════ MEMORANDUM OPINION AND ORDER ═══════════════════════════════════════
¶1 Before the court is (1) Defendant’s Rule 91a Motion to Dismiss filed
December 23, 2025, (2) Plaintiffs’ Response to Defendant’s Rule 91a Motion to Dismiss
filed April 9, 2026, and (3) Defendant’s Reply in Support of its Rule 91a Motion to Dismiss
filed April 16, 2026. The court held a hearing on the issue of Defendant’s Rule 91a motion
to dismiss on April 28, 2026.
¶2 Defendant seeks dismissal of Plaintiff’s case under Rule 91a based on two
grounds (1) Plaintiffs’ claims are preempted by the Texas Uniform Trade Secrets Act (“TUTSA”), TEX. CIV. PRAC. & REM. CODE §134A.007, and (2) Plaintiffs failed to
plead sufficient facts to show Defendant was aware of any breach of fiduciary duty.
¶3 Texas Rule of Civil Procedure 91a provides:
[A] party may move to dismiss a cause of action on the grounds that it
has no basis in law or fact. A cause of action has no basis in law or fact if the
allegations, if taken as true, together with inferences reasonably drawn from
them, do not entitle the claimant to the relief sought. A cause of action has
no basis in fact if no reasonable person could believe the facts pleaded.
TEX. R. CIV. P. 91(a).
¶4 In their 91a Motion to Dismiss, Defendant first argues Plaintiffs’ claim for
knowing participation in a breach of fiduciary duty is premised on the same facts as the
alleged misappropriation of Plaintiffs’ trade secrets and is therefore preempted by TUTSA.
¶5 The Texas Uniform Trade Secrets Act defines trade secrets as any
information that “the owner of the trade secret has taken reasonable measures under the
circumstances to keep the information secret” and which derives independent economic
value from not being known or readily ascertainable by those who could benefit
economically from its “disclosure or use of the information.” TEX. CIV. PRAC. & REM.
CODE §134A.002(6).
¶6 The language of the preemption provision in TUTSA indicates it was created
with the intent “[t]o prevent inconsistent theories of relief for the same underlying harm
by eliminating alternative theories of common law recovery which are premised on the
misappropriation of a trade secret.” Super Starr Int’l, LLC v. Fresh Tex Produce, LLC, 531 S.W.3d 829, 843 (Tex. App. —Corpus Christi 2017, no pet.) (citing Smithfield Ham &
Prod. Co. v. Portion Pac, Inc., 905 F.Supp. 346, 348 (E.D. Va. 1995). “In other words,
TUTSA ‘preempts claims that rely on the same facts as a trade-secret-misappropriation
claim...’” Trinseo Eur. GmbH v. Kellogg Brown & Root, L.L.C., 165 F.4th 399, 422 (5th Cir.
2026) (quoting Coe v. DNOW LP, 718 S.W.3d 338, 353 (Tex. App.—Houston (14th Dist.)
2025, pet. filed). Thus, “if proof of some other theory of liability would also prove
misappropriation of a trade secret, then the claim is preempted.” Coe, 718 S.W.3d at 353.
If, however, other theories of liability would prove not to be misappropriation of a trade
secret, it would stand to reason that those claims would not be preempted.
¶7 Under TUTSA, preemption of trade secrets does not affect certain remedies,
including “other civil remedies that are not based upon misappropriation of a trade secret.”
TEX. CIV. PRAC. & REM. CODE § 134A.007(b)(2). Specifically, TUTSA does not bar a
breach-of-fiduciary-duty claim based on the theft of confidential information that was not
a trade secret. See Coe, 718 S.W.3d at 369. TUTSA is not preempted when employees
breach their duties by acting in their own interest and directly creating a separate
competitive business while still working for their employer. See ScaleFactor, Inc. v. Process
Pro Consulting, LLC, 394 F. Supp.3d 680, 686 (W.D. Tex. 2019).
¶8 Plaintiffs’ claims encompass more than misappropriation of trade secrets.
Plaintiffs allege Defendant Ayr Energy, Inc.’s (“Ayr”) officers and employees knowingly
breached fiduciary duties owed to Plaintiffs by soliciting customers and investors on behalf
of Ayr (a competing entity) while still employed by Plaintiffs. Plaintiffs further allege
certain employees used Plaintiffs’ resources and IT infrastructure – including company devices, company email accounts, and Microsoft Teams accounts – to benefit Ayr while still
employed by Plaintiffs. Specifically, Plaintiffs allege the use of company resources to
develop and promote a competing business during the course of their employment.
¶9 These specific allegations concern conduct independent of the alleged
unauthorized use of confidential information or misappropriation of trade secrets.
Accordingly, to the extent Plaintiffs’ breach-of-fiduciary-duty and knowing-participation
claims are based on conduct independent of any alleged trade-secret-misappropriation,
those claims are not preempted by TUTSA.
¶10 While TUTSA clearly preempts theories of liability that would also prove
misappropriation of trade secrets, it does not preempt theories of liability that are not based
on the same facts as the misappropriation of trade secrets claim. See Coe, 718 S.W.3d at
353. In this case, any claim for breach of fiduciary duty based on the taking of trade secrets
is preempted by TUTSA. However, Plaintiffs’ pleaded allegations extend beyond the
alleged misappropriation of trade secrets and include allegations that Defendant used
Plaintiffs’ resources to benefit a competing corporate entity.
¶11 Plaintiffs’ claim of breach of fiduciary duty is an allegation to be determined
based on the facts presented at trial. If Plaintiffs’ allegations as pleaded are found to be
supported by facts asserted, then a reasonable person could reach a decision based on the
law and facts. Taking those allegations as true, as Rule 91a requires, the court cannot
conclude the challenged cause of action has no basis in law or fact.
¶12 Defendant separately argues that Plaintiffs fail to adequately plead the
“knowledge” element of their knowing-participation claim. Under Texas law, a knowing- participation claim requires allegations that the defendant was aware of its participation in
a third party’s breach of fiduciary duty. See Lara v. Streamline Ins. Servs., LLC, No. 03-19-
00474-CV, 2020 WL 7776080, at *6 (Tex. App. —Austin Dec. 31, 2020, no pet.).
Defendant argues that Plaintiffs rely on imputed knowledge, meaning the knowledge of
Ayr’s agents, to establish Ayr’s knowledge and awareness of the alleged fiduciary duties.
Defendant relies on DeYoung to argue that imputed knowledge is insufficient as a matter
of law. DeYoung v. Beirne, Maynard, & Parsons, L.L.P., No. 01-13-00365-CV, 2014 WL
1058201, at *6 (Tex. App. —Houston [1st Dist.] Mar. 18, 2014, no pet.).
¶13 However, that case addresses different circumstances in which an agent
acted outside the course and scope of the agent’s authority, such that the agent’s authority
could not be imputed on the principal. Id. That limitation does not control in this case,
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FILED IN BUSINESS COURT OF TEXAS BEVERLY CRUMLEY, CLERK ENTERED 2026 Tex. Bus. 31 5/20/2026
The Business Court of Texas, Eleventh Division
UNIMACTS GLOBAL, LLC, § ZETWERK MANUFACTURING US § INC., and ZETWERK § MANUFACTURING BUSINESS § Cause No. 25-BC11A-0083 PRIVATE LIMITED, § § Plaintiffs, § § v. § AYR ENERGY INC., § § Defendant.
═══════════════════════════════════════ MEMORANDUM OPINION AND ORDER ═══════════════════════════════════════
¶1 Before the court is (1) Defendant’s Rule 91a Motion to Dismiss filed
December 23, 2025, (2) Plaintiffs’ Response to Defendant’s Rule 91a Motion to Dismiss
filed April 9, 2026, and (3) Defendant’s Reply in Support of its Rule 91a Motion to Dismiss
filed April 16, 2026. The court held a hearing on the issue of Defendant’s Rule 91a motion
to dismiss on April 28, 2026.
¶2 Defendant seeks dismissal of Plaintiff’s case under Rule 91a based on two
grounds (1) Plaintiffs’ claims are preempted by the Texas Uniform Trade Secrets Act (“TUTSA”), TEX. CIV. PRAC. & REM. CODE §134A.007, and (2) Plaintiffs failed to
plead sufficient facts to show Defendant was aware of any breach of fiduciary duty.
¶3 Texas Rule of Civil Procedure 91a provides:
[A] party may move to dismiss a cause of action on the grounds that it
has no basis in law or fact. A cause of action has no basis in law or fact if the
allegations, if taken as true, together with inferences reasonably drawn from
them, do not entitle the claimant to the relief sought. A cause of action has
no basis in fact if no reasonable person could believe the facts pleaded.
TEX. R. CIV. P. 91(a).
¶4 In their 91a Motion to Dismiss, Defendant first argues Plaintiffs’ claim for
knowing participation in a breach of fiduciary duty is premised on the same facts as the
alleged misappropriation of Plaintiffs’ trade secrets and is therefore preempted by TUTSA.
¶5 The Texas Uniform Trade Secrets Act defines trade secrets as any
information that “the owner of the trade secret has taken reasonable measures under the
circumstances to keep the information secret” and which derives independent economic
value from not being known or readily ascertainable by those who could benefit
economically from its “disclosure or use of the information.” TEX. CIV. PRAC. & REM.
CODE §134A.002(6).
¶6 The language of the preemption provision in TUTSA indicates it was created
with the intent “[t]o prevent inconsistent theories of relief for the same underlying harm
by eliminating alternative theories of common law recovery which are premised on the
misappropriation of a trade secret.” Super Starr Int’l, LLC v. Fresh Tex Produce, LLC, 531 S.W.3d 829, 843 (Tex. App. —Corpus Christi 2017, no pet.) (citing Smithfield Ham &
Prod. Co. v. Portion Pac, Inc., 905 F.Supp. 346, 348 (E.D. Va. 1995). “In other words,
TUTSA ‘preempts claims that rely on the same facts as a trade-secret-misappropriation
claim...’” Trinseo Eur. GmbH v. Kellogg Brown & Root, L.L.C., 165 F.4th 399, 422 (5th Cir.
2026) (quoting Coe v. DNOW LP, 718 S.W.3d 338, 353 (Tex. App.—Houston (14th Dist.)
2025, pet. filed). Thus, “if proof of some other theory of liability would also prove
misappropriation of a trade secret, then the claim is preempted.” Coe, 718 S.W.3d at 353.
If, however, other theories of liability would prove not to be misappropriation of a trade
secret, it would stand to reason that those claims would not be preempted.
¶7 Under TUTSA, preemption of trade secrets does not affect certain remedies,
including “other civil remedies that are not based upon misappropriation of a trade secret.”
TEX. CIV. PRAC. & REM. CODE § 134A.007(b)(2). Specifically, TUTSA does not bar a
breach-of-fiduciary-duty claim based on the theft of confidential information that was not
a trade secret. See Coe, 718 S.W.3d at 369. TUTSA is not preempted when employees
breach their duties by acting in their own interest and directly creating a separate
competitive business while still working for their employer. See ScaleFactor, Inc. v. Process
Pro Consulting, LLC, 394 F. Supp.3d 680, 686 (W.D. Tex. 2019).
¶8 Plaintiffs’ claims encompass more than misappropriation of trade secrets.
Plaintiffs allege Defendant Ayr Energy, Inc.’s (“Ayr”) officers and employees knowingly
breached fiduciary duties owed to Plaintiffs by soliciting customers and investors on behalf
of Ayr (a competing entity) while still employed by Plaintiffs. Plaintiffs further allege
certain employees used Plaintiffs’ resources and IT infrastructure – including company devices, company email accounts, and Microsoft Teams accounts – to benefit Ayr while still
employed by Plaintiffs. Specifically, Plaintiffs allege the use of company resources to
develop and promote a competing business during the course of their employment.
¶9 These specific allegations concern conduct independent of the alleged
unauthorized use of confidential information or misappropriation of trade secrets.
Accordingly, to the extent Plaintiffs’ breach-of-fiduciary-duty and knowing-participation
claims are based on conduct independent of any alleged trade-secret-misappropriation,
those claims are not preempted by TUTSA.
¶10 While TUTSA clearly preempts theories of liability that would also prove
misappropriation of trade secrets, it does not preempt theories of liability that are not based
on the same facts as the misappropriation of trade secrets claim. See Coe, 718 S.W.3d at
353. In this case, any claim for breach of fiduciary duty based on the taking of trade secrets
is preempted by TUTSA. However, Plaintiffs’ pleaded allegations extend beyond the
alleged misappropriation of trade secrets and include allegations that Defendant used
Plaintiffs’ resources to benefit a competing corporate entity.
¶11 Plaintiffs’ claim of breach of fiduciary duty is an allegation to be determined
based on the facts presented at trial. If Plaintiffs’ allegations as pleaded are found to be
supported by facts asserted, then a reasonable person could reach a decision based on the
law and facts. Taking those allegations as true, as Rule 91a requires, the court cannot
conclude the challenged cause of action has no basis in law or fact.
¶12 Defendant separately argues that Plaintiffs fail to adequately plead the
“knowledge” element of their knowing-participation claim. Under Texas law, a knowing- participation claim requires allegations that the defendant was aware of its participation in
a third party’s breach of fiduciary duty. See Lara v. Streamline Ins. Servs., LLC, No. 03-19-
00474-CV, 2020 WL 7776080, at *6 (Tex. App. —Austin Dec. 31, 2020, no pet.).
Defendant argues that Plaintiffs rely on imputed knowledge, meaning the knowledge of
Ayr’s agents, to establish Ayr’s knowledge and awareness of the alleged fiduciary duties.
Defendant relies on DeYoung to argue that imputed knowledge is insufficient as a matter
of law. DeYoung v. Beirne, Maynard, & Parsons, L.L.P., No. 01-13-00365-CV, 2014 WL
1058201, at *6 (Tex. App. —Houston [1st Dist.] Mar. 18, 2014, no pet.).
¶13 However, that case addresses different circumstances in which an agent
acted outside the course and scope of the agent’s authority, such that the agent’s authority
could not be imputed on the principal. Id. That limitation does not control in this case,
because Plaintiffs expressly allege Ayr’s agents acted on Ayr’s behalf in furtherance of
Ayr’s business. See Id. (quoting Minyard Food Stores, Inc. v. Goodman, 80 S.W.3d 573, 577
(Tex. 2002) (“The general rule is that an employer is liable for its employee’s torts only
when the tortious act falls within the scope of the employee’s general authority in
furtherance of the employer’s business.”).
¶14 Under Texas law, a corporation necessarily acts and acquires knowledge
through its agents. See Kinzbach Tool Co. v. Corbett-Wallace Corp., 138 Tex. 565, 160
S.W.2d 509, 514 (1942). Accordingly, an agent’s knowledge acquired within the scope of
the agent’s authority is imputed on the principal. Grant Thornton LLP v. Prospect High
Income Fund, 314 S.W.3d 913, 924 (Tex. 2010) (“[A]n agent’s knowledge is generally
imputed to its principal.”); RESTATEMENT (THIRD) OF AGENCY (2006) § 5.03 cmt. B (“If an agent has actual knowledge of a fact, the principal is charged with the legal
consequences of having actual knowledge of the fact.”).
¶15 In the present case, Plaintiffs allege that former employees Edla, Stuckey,
and Tulshan acted on behalf of Ayr when they solicited customers, sought investors, and
used Plaintiffs’ resources to establish Ayr’s competing business. Taking those allegations
as true, Defendant may be charged with the knowledge its agents acquired while
conducting Defendant’s business. Plaintiffs, therefore, adequately pled the knowledge
element of their knowing-participation claim.
¶16 Plaintiffs’ claims are supported by allegations that extend beyond the alleged
misappropriation of trade secrets, and therefore, are not wholly preempted by TUTSA.
Further, Plaintiffs adequately pled the knowledge element of their knowing-participation
claim by alleging that Defendant’s agents acted on Defendant’s behalf.
¶17 Taking Plaintiffs’ allegations as true, the court cannot conclude Plaintiffs’
cause of action has no basis in law or fact. Defendants' 91a Motion to Dismiss this cause of
action based on no basis in law or fact is therefore DENIED. It is so Ordered that
Defendants’ 91a Motion to Dismiss is Denied.
SO ORDERED.
MARIALYN BARNARD Judge of the Texas Business Court
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Case Contacts
Name BarNumber Email TimestampSubmitted Status
Craig Smyser 18777575 csmyser@steptoe.com 5/20/2026 3:50:20 PM SENT
Andrew K. Meade ameade@mnbllp.com 5/20/2026 3:50:20 PM SENT
Leann Pinkerton lpinkerton@mnbllp.com 5/20/2026 3:50:20 PM SENT
Drew Padley 24111325 dpadley@steptoe.com 5/20/2026 3:50:20 PM SENT
Samuel Haren sharen@mnbllp.com 5/20/2026 3:50:20 PM SENT
Karima Maloney kmaloney@steptoe.com 5/20/2026 3:50:20 PM SENT
Edwynna Adams eadams@steptoe.com 5/20/2026 3:50:20 PM SENT
Heather Padron hpadron@steptoe.com 5/20/2026 3:50:20 PM SENT
Brent Hanson bhanson@steptoe.com 5/20/2026 3:50:20 PM SENT
Paul Stancil 797488 pstancil@steptoe.com 5/20/2026 3:50:20 PM ERROR
Christine Sama CSama@goodwinlaw.com 5/20/2026 3:50:20 PM SENT
Huiya Wu hwu@goodwinlaw.com 5/20/2026 3:50:20 PM SENT
David Isaak disaak@steptoe.com 5/20/2026 3:50:20 PM SENT
Linda Casas lcasas@steptoe.com 5/20/2026 3:50:20 PM SENT