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Unimachts Global v. Ayr Energy
Analysis
Outside Counsel Not of Record Denied Access to AEO Materials in Trade Secrets Case
In Unimachts Global v. Ayr Energy, the Business Court of Texas denied India-based BTG Advaya attorneys—not counsel of record—access to Confidential Information and Attorney's Eyes Only discovery materials in a trade secrets dispute between rival transformer manufacturers. The court rejected plaintiffs' plain-language interpretation of the protective order and applied the traditional balancing test used in trade secret cases to deny access to the non-appearing foreign counsel.
TUTSA Preemption Does Not Bar Fiduciary Duty Claims Based on Independent Conduct Beyond Trade Secret Misappropriation
The Business Court of Texas denied Ayr Energy's Rule 91a motion to dismiss claims for knowing participation in breach of fiduciary duty, holding that TUTSA preempts only claims premised on the same facts as trade secret misappropriation—not claims based on independent conduct such as employees using company resources to develop competing businesses while still employed. The court further held that a corporate defendant may be charged with knowledge its agents acquired while acting within the scope of their authority in furtherance of the defendant's business.