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Austin Jury Awards ES3 Minerals Over $49 Million in Trade Secrets Case
Former executives found liable for misappropriating proprietary systems to launch competing mineral brokerage
Mar. 13, 2026 at 9:08pm
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A Texas jury unanimously found that three former senior executives of ES3 Minerals, an Austin-based mineral acquisition company, misappropriated the company's trade secrets to launch a competing mineral rights brokerage. The jury awarded ES3 Minerals over $40 million in damages for the value of its proprietary systems, plus an additional $9 million in punitive damages.
Why it matters
This case highlights the importance of protecting trade secrets and intellectual property, especially in highly competitive industries like the mineral acquisition market. The verdict sends a strong message that Texas courts will hold former employees accountable for misusing confidential business information to launch rival ventures.
The details
The jury found that Nicholas "Nick" Kreines, David Ryan, and Jettie Rangel (Jennings), all former senior employees of ES3 Minerals, were liable for misappropriating the company's trade secrets to establish Liberty Mineral Partners (LMP), a competing mineral rights brokerage. The jury determined that the defendants acted together in a coordinated effort to take and use ES3's confidential systems and information to set up the competing firm.
- The case, ES3 Minerals, LLC v. Kreines, Ryan, LMP, et al., was tried in the Texas Business Court, Third Division (Austin), from February 24 through March 9, 2026.
- The jury returned a unanimous verdict on March 13, 2026.
The players
ES3 Minerals, LLC
An Austin-based mineral acquisition and advisory company that developed proprietary systems and methods to compete in the mineral rights brokerage market.
Nicholas "Nick" Kreines
A former senior employee of ES3 Minerals who was found liable for breach of fiduciary duty.
David Ryan
A former senior employee of ES3 Minerals who was found liable for intentional interference with ES3 employee agreements.
Jettie Rangel (Jennings)
A former senior employee of ES3 Minerals who was found liable for misappropriating ES3's trade secrets.
Liberty Mineral Partners (LMP)
A competing mineral rights brokerage launched by the former ES3 Minerals executives.
What they’re saying
“At its core, this case was about protecting the systems, technology and business we've built at ES3.”
— Trey Stanton, Founder of ES3 Minerals
“This verdict sends a clear message that Texas courts and Texas juries will hold employees accountable when they misappropriate their employer's most valuable assets.”
— Michael Marin, Lead trial counsel for ES3 Minerals
What’s next
The case now moves into the post-trial phase, during which the court will enter a final judgment and consider additional remedies, including potential injunctive relief.
The takeaway
This case underscores the importance of protecting trade secrets and intellectual property, especially in highly competitive industries. The unanimous jury verdict demonstrates that Texas courts will hold former employees accountable for misusing confidential business information to launch rival ventures.
