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Austin Jury Awards ES3 Minerals Over $49 Million in Trade Secrets Case
Unanimous verdict finds former executives misappropriated proprietary systems to launch competing mineral brokerage
Mar. 13, 2026 at 9:19pm
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A Texas jury has awarded ES3 Minerals, LLC more than $49 million in damages after finding that former senior executives misappropriated the company's trade secrets to launch a competing mineral brokerage firm. The jury unanimously found the defendants liable for breaching fiduciary duties, interfering with employee agreements, and willfully misappropriating ES3's proprietary systems and information.
Why it matters
This case highlights the importance of protecting trade secrets and proprietary business systems, especially in highly competitive industries like mineral acquisition. The verdict sends a strong message that Texas courts will hold employees accountable for misusing their employer's most valuable assets to launch rival companies.
The details
After a two-week trial, the 12-person jury found that former ES3 Minerals executives Nicholas Kreines, David Ryan, and Jettie Rangel (Jennings) misappropriated the company's trade secrets to establish Liberty Mineral Partners, a competing mineral rights brokerage. The jury valued ES3's integrated trade secret system at over $40 million and awarded an additional $9 million in punitive damages.
- The case, ES3 Minerals, LLC v. Kreines, Ryan, LMP, et al., was tried in the Texas Business Court from February 24 through March 9, 2026.
- The jury delivered a unanimous verdict on March 13, 2026.
The players
ES3 Minerals, LLC
An Austin-based mineral acquisition and advisory company that developed proprietary systems to compete in the mineral rights brokerage market.
Nicholas "Nick" Kreines
A former senior employee of ES3 Minerals who was found liable for breaching fiduciary duties and misappropriating trade secrets.
David Ryan
A former senior employee of ES3 Minerals who was found liable for interfering with employee agreements and misappropriating trade secrets.
Jettie Rangel (Jennings)
A former senior employee of ES3 Minerals who was found liable for misappropriating trade secrets.
Liberty Mineral Partners (LMP)
A competing mineral rights brokerage firm 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 proprietary business systems, especially in highly competitive industries. The substantial damages award serves as a warning to employees who may be tempted to misuse their employer's confidential information to launch rival companies.
