A decision by the 113th Judicial District Court in Harris County last month set a precedent that could deter future trade-secret litigation.
The court threw out Houston-based National Oilwell Varco LP's multimillion-dollar lawsuit against A&B Valve and Piping Systems LP in which NOV claimed A&B had violated nondisclosure agreements when it hired away four employees, and that those employees had taken trade secrets with them.
With oil and gas company profits soaring and talented labor at a premium, lateral hires in almost all fields have risen, not just in technical and engineering positions but also in inside and outside sales positions.
"We're seeing this more and more," says John Zavitsanos, partner at Ahmad Zavitsanos & Anaipakos PC and co-lead counsel for A&B. "Many of these employment firms are busting at the seams with trade-secret litigation."
