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Glattly v. Air Starter Components, Inc.

In this appeal, which primarily concerns a claim that a newly formed company misappropriated the trade secrets of an established company, there is no evidence to support the jury's award for lost-profits damages to the established company. Accordingly, that portion of the trial court's judgment is reversed. Furthermore, the trial court abused its discretion in limiting the injunction prohibiting the new company from using the established company's trade secrets to a term of 30 years. That portion of the trial court's judgment is modified to exclude the time limit. Houston's 1st Court of Appeals, No. 01-09-00098-CV, 10-08-2010

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OPINION

This appeal primarily concerns a claim that a newly formed company misappropriated the trade secrets of an established company. Air Starter Components, Inc. (“Air Starter”), the established company, obtained a judgment for misappropriation of trade secrets against the newly formed company, Specialized Components, Inc. (“Specialized”), its shareholders James E. Glattly, David Molina, Andrew Boyd, and its salesman, Filiberto Fuentes Jr., jointly and severally for $168,036. Air Starter also obtained a judgment for tortious interference with contract for $600,000 against the same parties, as well as another company, ABCO Products, Inc., jointly and severally. In addition to damages, Air Starter received an injunction prohibiting Specialized, Glattly, and Molina from using Air Starter’s trade secrets.

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