Kellmann v. Workstation Integrations, Inc.
332 S.W.3d 679
Tex. App.2010Background
- Kellmann, former senior consultant for Workstation Integrations, resigned in July 2004 and started Kellmann Consulting, Inc.
- Workstation Integrations alleged Kellmann misappropriated trade secrets and breached fiduciary duties, among other claims, after her resignation.
- The company alleged loss of clients and profits due to Kellmann's actions and the subsequent formation of Kellmann Consulting.
- The case proceeded to jury; the jury found theft of trade secrets, misappropriation, and breach of fiduciary duty; damages included lost profits and attorney's fees.
- Trial court awarded damages including $148,486 in actual damages and $35,000 in attorney's fees; and a take-nothing judgment on counterclaims.
- On appeal, Kellmann challenged the damages theory and sufficiency of evidence, particularly for lost profits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Lost profits sufficiency for damages | Kellmann argues damages were supported by net profits | Workstation contends gross revenue proves lost profits | Lawful-sufficiency of lost-profits evidence was lacking; reversed and take-nothing for Kellmann |
| Prevailing party status for attorney's fees under the Theft Liability Act | Kellmann sought fees as prevailing party | Workstation contends there was no prevailing-party status | No prevailing-party status; attorney's fees not recoverable |
Key Cases Cited
- Merrell Dow Pharms., Inc. v. Havner, 953 S.W.2d 706 (Tex. 1997) (evidence sufficiency standards; scintilla rule; causation of damages)
- Swinnea v. ERI Consulting Eng'rs, Inc., 318 S.W.3d 867 (Tex. 2010) (lost profits must be based on net profits and one complete calculation)
- Heine v. Holt Atherton Indus., Inc., 835 S.W.2d 80 (Tex. 1992) (net profits vs gross revenue for lost-profits damages)
- Formosa Plastics Corp. v. Presidio Eng'rs and Contractors, 960 S.W.2d 41 (Tex. 1998) (lost-profits framework; profits certainty)
- Texaco, Inc. v. Phan, 137 S.W.3d 763 (Tex. App.—Houston [1st Dist.] 2004) (no evidence of net profits when only gross figures)
- Atlas Copco Tools, Inc. v. Air Power Tool & Hoist, Inc., 131 S.W.3d 203 (Tex. App.—Fort Worth 2004) (no lost-profits evidence when only gross profits)