Wooters v. Unitech International, Inc.

513 S.W.3d 754, 2017 WL 372165, 2017 Tex. App. LEXIS 709
CourtCourt of Appeals of Texas
DecidedJanuary 26, 2017
DocketNO. 01-15-00174-CV
StatusPublished
Cited by21 cases

This text of 513 S.W.3d 754 (Wooters v. Unitech International, 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.

Bluebook
Wooters v. Unitech International, Inc., 513 S.W.3d 754, 2017 WL 372165, 2017 Tex. App. LEXIS 709 (Tex. Ct. App. 2017).

Opinion

OPINION ON REHEARING

Jane Bland, Justice

In this appeal from a judgment for conspiracy to breach a fiduciary duty, we determine whether sufficient evidence supports a finding that a- non-employee conspired to aid an employee’s breach of fiduciary duty to his employer. Unitech International, Inc. sued two former employees when it discovered that those employees had stolen Unitech’s trade secrets in preparation for launching a competing company. Unitech fired the employees, Chris Kutach and Jason Pennington. During its investigation, Unitech learned that Kutach had asked Tim Wooters, who was not a Unitech employee, to join Kutach and Pennington in forming the new company, Unitech sued Wooters too, alleging that Wooters had conspired with Kutach and Pennington to breach their fiduciary duties to Unitech, to steal Unitech’s trade secrets, and to unlawfully convert Uni-tech’s property.

A jury found in favor of Wootérs on the latter two claims, determining that Uni-tech failed to prove that Wooters conspired to steal or to convert Unitech’s property. But it found that Wooters had conspired with Kutach and Pennington to breach their fiduciary duties to Unitech. The jury also found Kutach and Pennington liable under all three theories and awarded damages.

Wooters contends on appeal that no evidence supports the jury’s finding that he conspired to breach fiduciary duties owed by Kutach and Pennington to Unitech and no evidence supports the jury’s damages award. Because no evidence supports the [757]*757finding that Wooters conspired to breach fiduciary duties owed to Unitech, we reverse the finding of liability against Woot-ers and render judgment that Unitech take nothing against him.

Since our original opinion issued, Uni-tech moved for en banc reconsideration, challenging the propriety of the application of the legal sufficiency standard of review. Treating the en banc motion as request for panel rehearing, we vacate the original opinion and judgment and issue the following in their stead. We dismiss the motion for en banc reconsideration as moot. The disposition of the appeal remains unchanged.

BACKGROUND

Unitech is a company that sells products and services to customers in the offshore and subsea oil and gas production business. It was founded in 1984 in Norway by Bemt Hellespe. Unitech opened a Houston office in 1995. Bemt Hellespe and his son, John Hellesqe, lead the Houston operation.

Unitech manufactures “flying” and “umbilical” leads, which are lines that carry hydraulic signals between the sea bottom and the ocean surface, and “stab plates,” which connect with the leads and attach to the wellhead on the ocean floor. Unitech continually develops new designs to improve its products’ performance and durability. Its designs are valuable, proprietary, and confidential property. Unitech typically holds its designs under lock and key in Bernt Hellespe’s office.

Kutach’s and Pennington’s employment

In October 2011, Chris Kutach joined Unitech Umbilical Services, Inc., an affiliated company, as a service manager. Ku-tach signed a noncompetition agreement with Unitech. Kutach’s agreement contained the following clause:

If [Kutach] leaves or is dismissed by UNITECH GROUP, [he] is under obligation to the best of his ability not to be employed or obtain livelihood from activities in competition with UNITECH GROUP.

Among other duties, Kutach served as a project manager for a transaction known as the “Saipem Project,” a subsea oil and gas development project near China. As part of the project, Unitech planned to provide 11 flying leads.

Jason Pennington began working for Unitech as a sales manager in 2010. As sales manager, Pennington was responsible for closing Unitech’s side of the Saipem transaction. Pennington also signed a non-competition agreement as part of his employment at Unitech.

Kutach had longtime thoughts of developing a subsea services company. During the 1990’s, while Kutach was employed with Parker Cabett Subsea, he shared these ideas with Tim Wooters, who was Kutach’s supervisor and part owner of that company. Wooters was an engineering manager with technical expertise in the industry. Kutach also shared his idea with another Parker Cabett co-worker, Jason Collins. Collins also eventually went to work for Unitech.

After leaving Parker Cabett, Kutach maintained contact with Wooters and periodically sent him industry materials. Woot-ers eventually retired from Parker Cabett.

Kutach and Pennington plan to form a competing company .

While working at Unitech, Kutach discussed the possibility of forming a subsea services company with Pennington. In October 2011, Kutach met with Pennington and Collins .at a Tex-Mex restaurant, where they discussed Kutach’s plan to form a company called Infinity Subsea. They discussed a possible client relation[758]*758ship with Fjell, a competitor of Unitech that, like Unitech, is also based in Norway. Fjell had recently entered the subsea market.

A former Unitech employee, Sonia van Uden, had left Unitech for Fjell. Van Uden was in charge of Fjell’s new subsea products division. Pennington had maintained contact with van Uden since her departure from Unitech earlier in 2011.

Following the October meeting, Pennington registered an Internet domain name for a company to be called Infinity Subsea. With input from Kutach and Collins, Pennington began to draft a business plan for the company.

In November 2011, Bernt Hellespe discovered that someone had tampered with his Houston office door while he was out of town. Hellesoe hired a private investigator, John Moritz, to look into the matter. Mor-itz installed audio and video surveillance equipment throughout the office. He captured recordings of Kutach discussing Uni-tech’s trade secrets and Kutach’s plan to form a competing company.

On November 29, 2011, Kutach texted Pennington, “Get the company started, I’m ready to quit.” Pennington responded, “Let’s meet your guys and keep formulating the plan. I have a business plan outline for us to review.”

During the first full week of December, Kutach and Pennington traveled to Paris to attend a meeting on Unitech’s Saipem Project. Unitech had approved Kutach’s travel to Paris for the meeting. Pennington told Unitech that he was taking a vacation day and accompanied Kutach to Paris. Pennington then accompanied Kutach to the Saipem Project meeting and, without Unitech’s authorization, signed a contract on behalf of Unitech to provide products for an amount that was 40 percent less than the market price.

While Kutach and Pennington were in Paris, they also met with van Uden. At the meeting, van Uden showed Kutach and Pennington a Fjell presentation that included Fjell’s new subsea product line. Ku-tach recognized that some of the product designs appeared to be “strikingly similar” to Unitech’s products. Kutach thought that Fjell “would have to have taken information to be able to replicate the plates as closely as they did.”

When Kutach and Pennington returned from Paris, they did not disclose the meeting with van Uden to Unitech. Unitech later discovered that, before the meeting with van Uden, Pennington already was in possession of documents containing Uni-tech’s product designs. Pennington had no legitimate business reason for having those confidential documents.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ornelas v. Herrera
2025 Tex. Bus. 51 (Texas Business Court, 2025)
Dulcich, Inc. v. DaPron
S.D. Texas, 2025
Richard Goldberg v. EMR (USA Holdings) Inc.
Court of Appeals of Texas, 2019
Orbison v. Ma-Tex Rope Co.
553 S.W.3d 17 (Court of Appeals of Texas, 2018)
Artho v. Happy State Bank (In re Artho)
587 B.R. 866 (N.D. Texas, 2018)
GB Tubulars, Inc. v. Union Gas Operating Co.
527 S.W.3d 563 (Court of Appeals of Texas, 2017)

Cite This Page — Counsel Stack

Bluebook (online)
513 S.W.3d 754, 2017 WL 372165, 2017 Tex. App. LEXIS 709, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wooters-v-unitech-international-inc-texapp-2017.