Texas Business Court Splits Eagle Ford Trade Secret Settlement Proceeds Based on Joint Development, Orders Expense Reimbursement Despite Post-Bankruptcy Settlement

Following the second-ever Texas Business Court trial, Judge Barnard split trade secret misappropriation settlement proceeds 50/50 between post-bankruptcy Mesquite Energy (f/k/a Sanchez Energy Corporation) and Sanchez Oil & Gas Corporation, holding that joint development of Eagle Ford cost-saving initiatives created co-ownership rights despite Sanchez Energy providing all funding for the underlying proprietary methods. The court further ordered Sanchez Oil & Gas to reimburse half of pre-bankruptcy litigation expenses under unjust enrichment theory, finding the parties' 2022 post-bankruptcy settlement agreement did not bar the reimbursement claim.