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Erdos Miller Earns Strong Initial Victory in Oil and Gas Trade Secret Lawsuit

Proven Engineering Firm Continues Work in Down-Hole Device Development

Houston, Texas – August 22, 2016 – Erdos Miller Inc., a successful Houston-based engineering firm specializing in rugged turnkey solutions made to last in the harshest environments, resumed its normal business operations in July after defeating a temporary restraining order that prevented the company from working in the field of down-hole measurement while drilling (MWD) tools for clients in the oil and gas industry.

After a court ruling denied that plaintiff Leam Drilling Systems, LLC produced sufficient evidence to show a breach of confidential information or negative financial effects caused by its work with Erdos Miller, a Houston judge denied the plaintiff’s request for a preliminary injunction. The court observed that the evidence in this case instead established that the plaintiff’s oil and gas drilling projects were, at least in part, currently on pause due to the industry downturn. This denial allowed Erdos Miller to return to business as usual, serving clients in oil and gas with products and solutions that improve quality, reliability, cost, and production in the industry.

“We are, of course, pleased with this interim ruling,” said Ken Miller, Partner at Erdos Miller. “We’ve had years of great success helping clients create down-hole devices that improve operations for oil and gas companies and we’re eager to serve clients again in this capacity.”


 Erdos Miller Lawsuit Update: Texas Court Lifts Temporary Restraining Order, Denies Plaintiff’s Request for Preliminary Injunction

In June, Erdos Miller was hit with a temporary restraining order sought by client Leam Drilling Systems, LLC, who was seeking to prohibit Erdos Miller from working with other clients in the industry after alleging that Erdos Miller violated a contract between the two companies and stole confidential information and trade secrets belonging to Leam.

Following a two-day evidentiary hearing, Judge John Wooldridge of Texas’ 295th Judicial District Court on July 7 denied a temporary injunction requested by the plaintiff, Leam Drilling Systems, LLC, and lifted a temporary restraining order which hindered Erdos Miller’s ability to work in their industry. 

In denying, the court declared that the plaintiff failed to produce evidence sufficient to meet its burden of establishing a probable right of recovery and a probable interim injury. Further, the court found little if any evidence indicating that the defendant breached a fiduciary duty or misappropriated any confidential information or trade secrets belonging to the plaintiff, as demonstrated by the fact that the technology involved in this case was known throughout the industry or easily acquired by others.


Polsinelli Successfully Represents Oil and Gas Company

Polsinelli, a national Am Law 100 firm ranked in the top five percent of law firms for client service and known for its experience in intellectual property and business represented Erdos Miller.

“This outcome is a solid, bet-the-company win for our client and firm,” said Gregory Novak, who led the Polsinelli litigation team in mobilizing quickly to retain experts, take and defend 12 depositions, conduct massive discovery, and navigate a two-day evidentiary hearing. “As a lawyer, it is always satisfying to achieve a result that protects your client’s company, reputation, and employees, letting them get back to the normal course of business.”

A court date has been set for a full trial in December on the merits of allegations brought by Leam Drilling Systems, LLC against Erdos Miller: Leam Drilling Systems, LLC v. Erdos Miller, Inc., Case Number 2016-35945, in the 295th District Court in Harris County, Texas.


About Erdos Miller

Erdos Miller specializes in turnkey electronic device development and process control and automation. The firm solves quality, reliability, production, and cost issues in existing devices and creates new, market-leading products and processes for industry challenges. Based in Houston, Texas, Erdos Miller teams have proven experience in electronic design, expert programming, tailored COTS hardware, and commercialization to help clients carefully craft and bring to market products that are fundamentally different yet incredibly effective. Erdos Miller can be found online at www.erdosmiller.com.

About Polsinelli – real challenges. real answers.SM

Polsinelli is an Am Law 100 firm with more than 800 attorneys in 19 offices, serving corporations, institutions, and entrepreneurs nationally. Ranked in the top five percent of law firms for client service*, the firm has risen more than 50 spots over the past five years in the Am Law 100 annual law firm ranking. Polsinelli attorneys provide practical legal counsel infused with business insight, and focus on health care, financial services, real estate, intellectual property, mid-market corporate, and business litigation. Polsinelli attorneys have depth of experience in 100 service areas and 70 industries. The firm can be found online at www.polsinelli.com. Polsinelli PC. In California, Polsinelli LLP.