Texas Law Allows Legal Fee Award to Manager in Trade Secrets Row

A Texas company that offers cleanup and construction services in the wake of disasters must pay the legal expenses of a former managing member after it sued him alleging theft of trade secrets, an appeals court in the state ruled.

Restoration Specialists LLC alleged that Mark DeMattia breached his fiduciary duties and stole trade secrets shortly before the company’s 2018 sale to WyoTexGa LLC.

DeMattia argues that corporate regulations and the Texas Business Organizations Code require the company to pay his legal fees, independent of his right to indemnification or allegations of wrongdoing.

The Texas Court of Appeals, Fifth District, ...