What What ’ ’ s Your Story? s Your Story? Jeff Parsons Jeff Parsons Beirne, Maynard & Parsons LLP Beirne, Maynard & Parsons LLP Houston, Dallas & Austin, Texas Houston, Dallas & Austin, Texas
Jan 11, 2016
WhatWhat’’s Your Story?s Your Story?WhatWhat’’s Your Story?s Your Story?Jeff ParsonsJeff Parsons
Beirne, Maynard & Parsons LLPBeirne, Maynard & Parsons LLPHouston, Dallas & Austin, TexasHouston, Dallas & Austin, Texas
““El Pequeño ProblemEl Pequeño Problemaa ””
““El Pequeño ProblemEl Pequeño Problemaa ””
Or - Deep In the Heart of TexasOr - Deep In the Heart of Texas
El Pequeño Problema
The Prospect Generation
Agreements • Clients - - Family Partnerships • Rco - - E&P Co. owned by Mr. L and Mr. H
– Clients pay Rco big $$$ fees– Rco to bring Clients oil & gas prospects
• Clients can accept or reject any prospect – If accept a prospect, Clients get
• 35% Working Interest• And, “proprietary interest” in Rco’s seismic maps
and data on prospect
The Lopeno prospect• Rco discovers huge gas prospect
– 10-12 BCF – $70-90 MM in reserves
• Rco develops seismic map of Lopeno prospect
• Clients accept 35% W.I. in Lopeno prospect
• Rco leases Worley property to drill prospect– prepares to drill in January 2007
El Pequeño Problema• Rco - - Shows Seismic Map to various
people, but no “Confid. Agmts” – With its own Ds, Os or employees– With Clients or other investors
• Clients - - No “Confid. Agmts” – With Rco– With Mr. L or Mr. H– With individual family partners
The Treasure Map
El Milagro
Worley
The Lopeno Seismic Map
El Pequeño Problema
• Mr L is Chief Operating Officer of Rco– 50% owner of RCo– But, no confidentiality agreement
• Mr. L , Mr. H and RCo – sign Separation Agreement (eff. 12/31/06)– Mr. L sells all interest in RCo. to Mr. H– Mr. L gets right to “compete” with RCo– Mr. R keeps 25% W.I. in Lopeno wells
El Pequeño Problema
• 2007, Mr. L joins with Mr. “Cortez”• “Cortez” leases El Milagro property
– Next to Worley property– Worley wells visible from El Milagro
• L and C drill 4 wells on their lease• They extract 3.6 BCF from reservoir
El Pequeño Problema
•What’s Your Story?
Legal Claims vs. “Defenses”
• Complex Legal Claims
– Misappropriation of Trade Secrets
– Intentional Interference with Contract
– Civil Conspiracy
• “Ds will claim” - - -• “No trade secret”
– Seismic Map shown to investors
– No confidentiality agreements– Worley wells public
knowledge
• “No Interference”– Claim they did not use
seismic map– Claim they had right to drill
and compete
• “Big Anglo Ranchers” vs. 2 locals – 1 Hispanic
• Jury 100% Hispanic
The Solution
• A Simple Story– Ethos– Pathos– Logos
• Confirmed by Jury Research• Powered by Demonstrative
Exhibits
Jury Research• Important to keep promises – 100%• Business secrets are important – 95%• Important for businessmen to act fairly,
ethically – 90%• When leave employer, not OK to take
business secrets – 90%• Don’t need writing to warn “don’t take
other’s property” - 85%• Family is very important - 90%
Plaintiffs’ Opening“This Is A Simple Case”
• About “Right” vs. “Wrong”– Don’t Take What Doesn’t Belong to You– Don’t Break Your Promises– Don’t Interfere with Other’s Promises– Compete Hard but Honestly
• Defendants Broke All Four Rules
“This Is A Simple Case”
• “My Clients Did The Right Thing”– Kept their promises– Many family members invested small $– So Family could invest Big $$$$$– Family kept Lopeno secrets
• Only defendants who stole secrets
• Defendants’ Did the Wrong Thing– Took Family’s treasure map and secrets– Interfered with Family’s PGAs– Caused the Family $$ Millions in Damages
The Prospect Generation ContractsPX 4 & 6
Plaintiffs RCo.
Where is the Lopeno Prospect ?
The Treasure Map
Before Defendants’ Wrongful Conduct
1 mile
El Milagro Worley
After Defendants’ Wrongful Conduct
1 mile
El Milagro Worley