Assignment Does Not Expand Assignor's Rights in Trade Secret Settlement Proceeds

In Mesquite Energy v. Sanchez Oil, the Business Court of Texas addressed the allocation of settlement proceeds from a prior trade secret misappropriation lawsuit involving Sanchez Oil & Gas Corporation, Sanchez Energy Corporation (now Mesquite Energy), and Sanchez Production Partners LP against Terra Energy Partners and former employees. The dispute centered on whether Mesquite, as assignee of Sanchez Production Partners' claims, could recover a separate share of the settlement funds beyond its own rights as successor to Sanchez Energy Corporation.