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Ultra Premium Services, LLC v. OFS International, LLC

United States District Court, S.D. Texas, Houston Division

November 7, 2019

Ultra Premium Services, LLC, Plaintiff,
v.
OFS International, LLC, et al., Defendants.

          MEMORANDUM AND ORDER

          Christina A. Bryan United States Magistrate Judge

         This matter is before the Court on Defendants' Motion for Injunction to Enjoin State Proceedings in Conflict With Court's Rulings Under 28 U.S.C. § 2283 (Dkt. 95). Having considered the parties' submissions and the law, the motion is DENIED.

         Plaintiff filed its Original Complaint in this action on June 25, 2019 asserting causes of action against Defendants for violation of the Defend Trade Secrets Act, violation of the Texas Uniform Trade Secrets Act, and breach of contract, and seeking a temporary restraining order, a preliminary injunction, a permanent injunction and damages. Plaintiff's Original Complaint sought preliminary and permanent injunctive relief:

• prohibiting Defendants OFS International LLC, Oilfield Services and Technologies LLC, and each of their members, officers, agents, employees, and those persons in active concert or participation with them, whether acting directly or through any entity, corporation, subsidiary, division, affiliate or other device from:
i. Using or disclosing Confidential Information obtained from IPSCO pursuant to the Agreements. IPSCO's Confidential Information is defined as all information regarding or reflecting the design, manufacture, or specifications of IPSCO's Licensed Products pursuant to the Agreements;
ii. Using, sharing, summarizing, discussing or communicating in any manner concerning or otherwise making use of any of IPSCO's Confidential Information in any form and manufacturing products that are substantially similar to IPSCO's Licensed Products, including, but not limited to, the BHT, Python-SF, and Reaper-SF. OFSi is further enjoined from directly or indirectly marketing, selling, or providing field services for these same products; and
iii. OFSi shall return all of IPSCO's Confidential Information to counsel for IPSCO and shall not further possess, use, access or disclose IPSCO's Confidential Information;

Dkt. 1 at 15-16. The District Court denied the TRO and Preliminary Injunction motions but set an expedited trial on merits for January 2020. On September 3, 2019, Plaintiff filed a First Amended Complaint, seeking essentially the same permanent injunctive relief, but adding Threading and Precision Manufacturing, LLC as a Defendant and adding BHT-S, Python DC, and Warthog DC as allegedly infringing products.

         Meanwhile, on August 15, 2019, Plaintiff[1] filed a state court action against Ryan Broussard and Doug Dunford, former employees of Plaintiff who now work for Defendant OFSi. The state court lawsuit asserts causes of action against Broussard and Dunford for violation of the Texas Uniform Trade Secrets Act, breach of Confidentiality Agreements, and (as to Broussard) breach of the duty of loyalty. The state court lawsuit seeks temporary and permanent injunctions preventing Broussard and Dunford:

• from directly or indirectly using or disclosing, or threatening to use or disclose, IPSCO's confidential information and trade secrets for any reason;
• from concealing, moving, or sharing any of IPSCO's equipment, property, documents, reports, books, records, products, confidential information, or trade secrets;
• from deleting or destroying any information relating to IPSCO contained on any computer, phone, disc, data storage device, email account, or cloud storage; and
• from directly or indirectly working for or assisting (whether as an owner, employee, consultant, contractor, or otherwise) any business where they will be put in a position to use IPSCO's confidential information and trade secrets, including OFSi.

Dkt. 110-1 at 20-21. As of October 9, 2019, the state court had not set a hearing on the request for temporary or preliminary ...


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