VSMSQ Structural Engineers, LLC Stephan P. Voss, Rory a Starling, Martin R. Maingot and Jay Martin v. Structural Consultants Associates. Inc.

CourtCourt of Appeals of Texas
DecidedJuly 20, 2023
Docket01-22-00543-CV
StatusPublished

This text of VSMSQ Structural Engineers, LLC Stephan P. Voss, Rory a Starling, Martin R. Maingot and Jay Martin v. Structural Consultants Associates. Inc. (VSMSQ Structural Engineers, LLC Stephan P. Voss, Rory a Starling, Martin R. Maingot and Jay Martin v. Structural Consultants Associates. Inc.) 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.

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VSMSQ Structural Engineers, LLC Stephan P. Voss, Rory a Starling, Martin R. Maingot and Jay Martin v. Structural Consultants Associates. Inc., (Tex. Ct. App. 2023).

Opinion

Opinion issued July 20, 2023

In The

Court of Appeals For The

First District of Texas ———————————— NO. 01-22-00543-CV ——————————— VSMSQ STRUCTURAL ENGINEERS, LLC, STEPHAN P. VOSS, RORY A. STARLING, MARTIN R. MAINGOT, AND JAY MARTIN, Appellants V. STRUCTURAL CONSULTANTS ASSOCIATES, INC., Appellee

On Appeal from the 295th District Court Harris County, Texas Trial Court Case No. 2022-19896

OPINION

Appellants—VSMSQ Structural Engineers, LLC (VSMsq), Stephan P. Voss,

Rory A. Starling, Martin R. Maingot, and Jay Martin—filed a motion under the Texas Citizens Participation Act (TCPA)1 to dismiss the common-law

misappropriation claim filed against them by appellee Structural Consultants

Associates, Inc. (SCA). In its response, SCA argued that, under the commercial-

speech exemption, its misappropriation claim was exempt from the TCPA’s

protections. Appellants asserted that the artistic-work exception to the commercial-

speech exemption applied, thereby excluding the misappropriation claim from the

commercial-speech exemption.

The trial court signed an order denying Appellants’ TCPA motion to dismiss,

citing, inter alia, the commercial-speech exemption as a basis for the denial.

Appellants filed this interlocutory appeal challenging the order.2 Because SCA met

its burden to show that the commercial-speech exemption applied to its

misappropriation claim, and Appellants did not prove that the artistic-work

exception applied, we affirm the trial court’s order denying Appellants’ TCPA

motion to dismiss.

Background

On April 22, 2022, SCA filed suit against Appellants. In its original petition,

SCA described itself as “a structural engineering firm located in Sugar Land, Texas,

1 See TEX. CIV. PRAC. & REM. CODE §§ 27.001–.011. 2 TEX. CIV. PRAC. & REM. CODE § 51.014(a)(12) (permitting interlocutory appeal of order denying TCPA motion to dismiss). 2 who has become an industry leader in structural design and engineering services for

both national and international clients.” Appellants Voss, Starling, Maingot, and

Martin were previously employed by SCA. Voss, Martin, and Maingot were hired

by SCA as engineers, and Starling was hired as a drafter. SCA later appointed Voss

and Martin to be executives of SCA. Martin resigned from SCA in March 2020, and

Voss, Starling, Maingot resigned in March 2022.

SCA alleged that it discovered that Voss, Starling, Maingot, and Martin had

formed VSMsq—an engineering services company—in January 2022, before Voss,

Starling, and Maingot resigned. SCA described VSMsq as “a market competitor.”

SCA asserted that Voss, Starling, and Maingot took “highly valuable

confidential and proprietary information” from SCA to use for VSMsq’s benefit.

SCA alleged that Voss, Starling, and Maingot had met with SCA’s clients while

employed by SCA to secure business for VSMsq. SCA claimed that Voss, Starling,

and Maingot had “approached dozens of SCA employees to lure them away from

[SCA] by making outlandish and fraudulent misrepresentations that SCA was going

[out of business].” SCA further alleged that, shortly after Voss, Starling, and

Maingot resigned, SCA learned that its “most consistent client, Hanover Company,

had entered into agreements with Voss and VSMsq whereby Hanover Company

hired VSMsq to perform engineering consulting services.” SCA alleged that the

3 “timing of these agreements show[ed] that negotiations between [Appellants] and

Hanover had occurred prior to” the resignations of Voss, Starling, and Maingot.

According to SCA, its discovery of the Hanover agreements led it to VSMsq’s

website. There, SCA saw that Appellants were posting images of buildings that had

been engineered by SCA. SCA claimed that Appellants were using the images of the

buildings “to promote [VSMsq’s] engineering services on its website: VSMsq.com.”

SCA included a screenshot from VSMsq’s website in its petition. The screenshot

showed an image of a building engineered by SCA with the label “Project Types

Engineered by VSM[sq].” SCA asserted that Appellants were representing that the

buildings depicted in the image had been engineered by VSMsq. SCA alleged that

“VSMsq’s use of the above referenced building projects was done with the intention

of deceiving the public and potential clients into falsely believing that Defendant

VSMsq was the entity who developed and created the building projects.” SCA

claimed that “VSMsq ha[d] gained special advantage in its competition with [SCA]

through the use of these building projects and engineering design[s], because

Defendant VSMsq [was] burdened with little or none of the expense incurred by

Plaintiff SCA in creating the respective building plans.” SCA asserted that “VSMsq

knew that these building projects were created by Plaintiff SCA at the time the

images were placed on [VSMsq’s] website [because] Defendants Voss, Starling,

4 Maingot, and Martin, the owners and agents of Defendant VSMsq, worked on the

above referenced building projects for SCA during their employment with [SCA].”

SCA asserted 11 causes of action against Appellants. Of those, the only cause

of action relevant here is SCA’s common-law misappropriation claim.3 The

misappropriation claim arose from Appellants’ posting of the images of buildings

engineered by SCA on VSMsq’s website for the purpose of promoting Appellants’

engineering services. SCA asserted that Appellants had “used [SCA’s] building

projects knowingly and willfully, with the intent to mislead the public and cause

confusion and mistake and have actively deceived customers in doing so.” SCA

alleged that Appellants “specifically attempted to pass off [SCA’s] services as its

own” and that those “actions are known as ‘reverse-passing off’ and constitute[]

unfair competition.” SCA claimed that, as a result of those actions, it had “incurred

and will continue to incur substantial monetary damages in the form of lost business,

profit, and revenue.” SCA also sought injunctive relief.

On May 6, 2022, Appellants filed their “Original Answer and Counterclaims.”

They generally denied SCA’s claims, raised several affirmative defenses, and

counterclaimed for back-wages and unpaid vacation.

3 SCA also asserted a cause of action for “statutory misappropriation of trade secret and confidential information,” but any reference to SCA’s misappropriation cause of action or claim refers to its common-law misappropriation cause of action. 5 On May 11, 2022, SCA filed an application for a temporary restraining order

(TRO) based on its common-law misappropriation claim. SCA asked the trial court

“to issue a temporary restraining order ordering Defendant VSMsq to remove

references of SCA projects, products, and services from VSMsq.com.” The next day,

the parties entered into a Rule 11 agreement in which SCA agreed to forgo the TRO

hearing, and Appellants agreed “to remove any and all depictions of, or references

to, the SCA Building Projects from VSMsq.com within forty-eight (48) hours of the

execution of this Rule 11 Agreement.”

On May 27, 2022, Appellants filed a TCPA motion to dismiss SCA’s

common-law misappropriation cause of action. Appellants asserted that SCA’s

“claim for common law misappropriation should be dismissed because it is based on

or is in response to defendants’ exercise of their right of free speech.” They argued

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VSMSQ Structural Engineers, LLC Stephan P. Voss, Rory a Starling, Martin R. Maingot and Jay Martin v. Structural Consultants Associates. Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/vsmsq-structural-engineers-llc-stephan-p-voss-rory-a-starling-martin-r-texapp-2023.