Garner Environmental Services, Inc. v. First in Rescue, Safety, and Training, LLC, Adolph Roy Creager, Logan Reininger, Shelley Matthews, Tom Henderson and Bo Atkinson
01-16-00388-CV
| Tex. App. | Dec 22, 2016Background
- Garner Environmental (founded 1981) alleged that former employees who left in 2008 to form FIRST misappropriated Garner’s customer lists, contacts, class schedules, and pricing to divert business.
- In January 2009 Garner’s general counsel, Risner, sent a cease‑and‑desist letter to FIRST alleging unlawful use of Garner’s confidential information and threatened suit; Risner later admitted the letter was based on suspicion from lost clients, not concrete proof.
- FIRST’s counsel replied in January 2009 denying wrongdoing and noting the former employees had no non‑compete restrictions and customer lists might be public/ascertainable.
- Correspondence about possible litigation ceased by February 2009 and Garner did not file suit.
- In late 2013/2014 Garner reviewed documents filed in separate litigation by FIRST that Garner concluded originated from Garner; Garner sued FIRST in July 2015 for misappropriation of trade secrets, fraud, wrongful computer access, and civil conspiracy.
- FIRST moved for summary judgment arguing all claims were barred by the statute of limitations; the trial court granted summary judgment and dismissed Garner’s claims with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Garner’s claims are time‑barred or tolled by the discovery rule | The discovery rule delays accrual until Garner actually discovered in 2014 that FIRST had taken and used Garner’s confidential information | Limitations accrued no later than 2009 because Garner suspected misconduct and sent a cease‑and‑desist; thus claims are time‑barred | Reversed: suspicions and accusations in 2009 were insufficient; defendant failed to prove as a matter of law when Garner discovered or should have discovered the injury, so discovery rule prevents summary judgment on limitations |
Key Cases Cited
- Southwestern Energy Prod. Co. v. Berry‑Helfand, 491 S.W.3d 699 (Tex. 2016) (mere suspicion does not establish discovery of wrongful use of trade secrets)
- KPMG Peat Marwick v. Harrison Cnty. Hous. Fin. Corp., 988 S.W.2d 746 (Tex. 1999) (defendant asserting limitations must prove accrual date and negate discovery rule)
- Computer Assocs. Int’l, Inc. v. Altai, Inc., 918 S.W.2d 453 (Tex. 1996) (discovery rule applies where injury is inherently undiscoverable and evidence objectively verifiable)
- Am. Star Energy & Minerals Corp. v. Stowers, 457 S.W.3d 427 (Tex. 2015) (definition of accrual and when wrongful act causes legal injury)
- Cosgrove v. Cade, 468 S.W.3d 32 (Tex. 2015) (discovery rule defers accrual until injured party knows or should know of wrongful act)
