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Plaintiff accuses former employee Carlos Guzman of breaching contract and misappropriating trade secrets

SOUTHEAST TEXAS RECORD

Saturday, November 23, 2024

Plaintiff accuses former employee Carlos Guzman of breaching contract and misappropriating trade secrets

State Court
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Edge Energy Services, LLC has filed a lawsuit against Carlos Guzman, alleging breach of contract and misappropriation of trade secrets. The complaint was lodged in the District Court of Harris County, Texas on September 26, 2024. Edge Energy Services accuses Guzman of unlawfully taking confidential information and violating contractual obligations during and after his tenure with the company.

According to the petition, Edge Energy Services is a Texas-based company providing services to industries such as refinery, petrochemical, power plant, and oil and gas. They claim that Guzman, who served as President from December 11, 2020, had access to sensitive customer information and trade secrets due to his position. The company alleges that Guzman breached fiduciary duties by competing with Edge using their proprietary information for a direct competitor's benefit after leaving the company. Notably, he allegedly billed unauthorized hours amounting to $65,246.77 in wages for 2022 and retained company laptops post-employment.

The plaintiff claims that Guzman's actions violated several agreements including the Owners Agreement and Company Agreement dated December 11, 2020. These agreements required him not to compete with Edge or solicit its clients within a specific period post-employment. Furthermore, they accuse him of sharing confidential information with competitors through emails sent between January and February 2023. Edge also asserts that Guzman failed to comply with a proposed Redemption Agreement sent on October 6, 2023, which would have facilitated the sale of his Membership Interest back to Edge.

Edge Energy Services seeks monetary relief exceeding $250,000 but not more than $1 million as per Texas Rule of Civil Procedure 47(c)(3). They demand actual damages for lost profits and out-of-pocket expenses caused by Guzman's alleged misconduct. Additionally, they seek exemplary damages for willful conduct under the Texas Uniform Trade Secrets Act along with attorney fees incurred during litigation.

Representing Edge Energy Services are attorneys J. Michael Rose and Cesar Escalante from Locke Lord LLP based in Houston. The case is filed under Case ID: 2024-66252 in the District Court of Harris County before Judge Wanda Chambers.

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