Updated

Updated · Bloomberg Law · Jun 1

Texas Court Lets 3 EagleBurgmann Claims Proceed Over Trade Secrets, Contract Breach

Updated

Updated · Bloomberg Law · Jun 1

Texas Court Lets 3 EagleBurgmann Claims Proceed Over Trade Secrets, Contract Breach

Q: After a recent ruling, must companies now price every single secret to win a lawsuit?

No. The recent Texas ruling in the EagleBurgmann case did not require a company to put a dollar figure on every alleged secret just to keep its lawsuit alive. That decision was only about whether the complaint was pleaded well enough to proceed, and the court said the trade secret, contract, and interference claims were sufficiently supported. The harder pricing issue arises later, at the damages stage. Recent appellate decisions, especially the Fifth Circuit’s ruling in *Trinseo v. KBR*, warn that if a company alleges multiple trade secrets, it cannot rely on a single bundled damages number if the jury ends up finding that only some of those secrets were actually misappropriated. In that situation, the plaintiff needs evidence that lets the jury tie damages to the specific secrets proven at trial. That does not always mean a rigid price tag for every secret in advance. But it does mean companies should be ready with an apportionment method, such as valuing secrets individually, grouping them in a defensible way, or offering a damages model that still works if only part of the case is proven. Other remedies, including unjust enrichment or a reasonable royalty, may also be available depending on the facts. So the practical answer is this: companies do not need to “price every single secret” to file or survive dismissal, but they increasingly do need a reliable way to connect damages to the particular secrets they actually prove were stolen.

1 articles · Updated · Bloomberg Law · Jun 1

A Texas federal judge refused to dismiss EagleBurgmann Industries' suit against a former territory manager and his new employer, allowing breach of contract, trade secret, and tortious interference claims to move forward.
The court said the complaint sufficiently alleged misappropriation under the Texas Uniform Trade Secrets Act and Defend Trade Secrets Act, along with customer solicitation and interference tied to the employee's move.
The ruling also found the restrictive covenants were backed by adequate consideration, preserving EagleBurgmann's contract-based claims as the case proceeds.

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Bloomberg Law8d ago

Texas Federal Court Denies Motion to Dismiss EagleBurgmann's Trade Secret, Contract Claims

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1 total

Bloomberg Law8d ago

Texas Federal Court Denies Motion to Dismiss EagleBurgmann's Trade Secret, Contract Claims

Texas Court Lets 3 EagleBurgmann Claims Proceed Over Trade Secrets, Contract Breach

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