Wright's Well Control Servs., LLC v. Oceaneering Int'l, Inc.

292 F. Supp. 3d 735
Procedural entryThis page is a short order in Wright's Well Control Servs., LLC v. Oceaneering Int'l, Inc.. Read the opinion of the Court — 305 F. Supp. 3d 711
District Court, E.D. Louisiana·Decided February 5, 2018·No. CIVIL ACTION NO. 15–1720·Published

Opinion

SARAH S. VANCE, UNITED STATES DISTRICT JUDGE

*737Defendant Oceaneering International, Inc. moves for summary judgment on several of plaintiff's state law claims.1 For the following reasons, the motion is granted in part and denied in part.

I. BACKGROUND

Plaintiff Wright's Well Control Services, LLC (WWCS) and defendant Oceaneering International, Inc. (Oceaneering) both provide hydrate remediation services for the oil and gas industry. A hydrate is an ice-like solid that forms when water becomes mixed with oil and/or gas at high pressure and low temperature.2 Hydrates can cause a pipeline to become blocked by "hydrate plugs," resulting in a loss of production.3

A. The Parties' Initial Hydrate Remediation Efforts

In 2008, ATP Oil and Gas Corporation contracted with Oceaneering to remove hydrates from a pipeline (Canyon Express project).4 At the time, Oceaneering had a hydrate remediation skid designed to clear hydrate plugs in smaller tubing; Oceaneering had not yet used it on a pipeline.5 This hydrate remediation skid featured a low-volume pump, and was fitted onto and powered by a remotely operated vehicle (ROV).6 Oceaneering successfully cleared some, but not all, of the hydrate plugs from ATP's pipeline in early 2009.7 Oceaneering's hydrate remediation skid also suffered various problems because of the presence of gas in the system, such as reduction in pumping capability and formation of hydrates in tubing connected to the skid.8 Oceaneering employees began discussing potential improvements to the hydrate remediation skid as early as February 2009.9

ATP then contracted with WWCS to conduct further hydrate remediation in ATP's pipeline (Kings Peak project), even though WWCS did not yet have a complete hydrate remediation system.10 WWCS developed its hydrate remediation system specifically for high-volume, deepwater applications, like ATP's pipeline.11 WWCS's system, later patented, used a pump with a much higher displacement rate than the pump used in Oceaneering's skid.12 This pump included a drill motor powered by pressurized seawater. See generally U.S. Patent No. 9,435,185 ('185 Patent). WWCS also designed a separator to remove gas from the system and discharge it to the surface.13

WWCS worked with various entities in developing its hydrate remediation system.

*738First, Gulf Coast Manufacturing (GCM) participated in the design of the system and built most of its components.14 Indeed, Jeffrey Dufrene, a GCM employee, is listed as a co-inventor along with WWCS's David Wright on WWCS's two patents. See U.S. Patent No. 8,413,725 (describing a subsea fluid separator); '185 Patent (describing a subsea technique for promoting fluid flow). Second, Bayou Land engineered and built the sealing units, and performed machine work.15 Third, Keystone Engineering, SRC Engineers, Inc., and ATP itself provided engineering assistance.16 Finally, Oceaneering built a methanol injection panel, various connectors, and emergency quick disconnects for the Kings Peak project.17 WWCS also worked with Oceaneering.18

B. The Nondisclosure Agreement

On December 11, 2009, WWCS and Oceaneering allegedly executed a Reciprocal Nondisclosure of Confidential and Proprietary Information Agreement (NDA).

The NDA's introductory section states: "It is the intention of the parties to this Agreement to exchange proprietary information. The disclosure and use of any proprietary data shall be governed in accordance with the following...." Section One defines the "information" that is covered by the NDA:

For the purpose of this Agreement, confidential and proprietary information "Information" shall be defined as but not limited to, performance, sales, financial, contractual, and special marketing information, ideas, technical data, all intellectual property including inventions, patents, pending patents and all other business, technical and financial information that the Disclosing Party develops, learns or obtains during the period over which it is (or is supposed to be) providing services as contracted for between the parties that relate to Recipient Party or the business or demonstrably anticipated business of the Recipient Party, or that are received by or for Recipient Party in confidence and concepts originated by the Disclosing Party. Proprietary information is further defined as data not previously available to the Receiving Party or others without restriction, nor normally furnished to others without compensation, and which the Disclosing Party desires to protect against unrestricted disclosure or competitive use, and which is furnished pursuant to this Agreement and appropriately identified as being proprietary when furnished.

Two provisions restrict a recipient's use of disclosed information. Section Two states: "With respect to all proprietary information disclosed hereunder, the Recipient Party agrees that for a period of three (3) years following the date of this Agreement, unless terminated sooner by either party, such party shall not...[u]se such information except for purposes of its business relationship with the Disclosing party." Section Four provides: "Neither party shall divulge or use any proprietary information disclosed to it hereunder by the other party for any purpose not connected with the effort contemplated by the Agreement."

Section Six places limits on a recipient's duty to protect and handle information. It provides, in relevant part:

*739The obligation with respect to the protection and handling of proprietary information, as set forth in this Agreement, is not applicable to the following:
a) Information which is or becomes lawfully known or available to the receiving party without restriction from a source other than the Disclosing Party.

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Wright's Well Control Servs., LLC v. Oceaneering Int'l, Inc., 292 F. Supp. 3d 735 (E.D. La. 2018).

292 F. Supp. 3d 735 (Wright's Well Control Servs., LLC v. Oceaneering Int'l, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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