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Burlington Northern Railroad Company v. General Projection Systems. Inc.5/2/2000
all items. At trial, a Burlington representative admitted that it unnecessarily confiscated some items, such as hand tools.
After GPS recovered its computers, it suspected that someone had made a "back-up tape" of its files. It had not given anyone permission to boot up its computers. The two computers GPS had on site contained software and programs related to the Burlington project. The computers also contained information related to other GPS projects, including customer spreadsheets regarding the cost of particular projects, communications with other customers, engineering files related to other projects, software programming, proposals, and customer lists and information about customers. Wayson, the president of GPS, testified that this information was proprietary to GPS. Most of the information on the computers was not protected by password.
While Burlington had possession of GPS's computers, two of GPS's competitors, XTG Inc. and Higginbotham Enterprises, hired by Burlington to complete the project, accessed the computers and copied GPS's files. James Faber of WJHW testified he instructed Robert Higginbotham, the president of Higginbotham Enterprises, to copy any files related to the Burlington project off GPS's computers. Faber did not ask GPS's permission. Guy Bustillos, an employee of XTG, testified Ralph Jones and Faber asked him to make copies of any files related to the Burlington project. Bustillos acknowledged that some of the files he copied were unrelated to the Burlington project.
GPS sued Burlington, alleging causes of action for breach of contract, conversion, and negligence. GPS asserted Burlington breached the contract by preventing GPS from performing and by not giving proper notice of termination. GPS also alleged Burlington converted and negligently handled its property after Burlington terminated the contract.
GPS asserted additional claims against Burlington for quantum meruit, unjust enrichment, tortious interference, theft of trade secrets, breach of confidence and conspiracy to breach confidence, unfair competition, violations of the Texas Theft Liability Act, "harmful access by computer," civil conspiracy, business disparagement, and fraud. The trial court later granted Burlington summary judgment on GPS's causes of action for quantum meruit, unjust enrichment, and breach of confidence and conspiracy to breach confidence. GPS nonsuited its claims for theft of trade secrets and violations of the theft liability act. GPS's claims for tortious interference, unfair competition, "harmful access by computer," civil conspiracy, business disparagement, and fraud were not submitted to the jury, and GPS does not complain on appeal about the disposition of any of these claims.
Burlington filed a breach of contract counterclaim. Burlington asserted GPS breached the contract by failing to timely install the equipment. Burlington also brought a third-party action against Amwest, the surety on GPS's performance bond. In the same lawsuit, GPS also sued WJHW, asserting most of the claims against WJHW that it asserted against Burlington. GPS did not assert any claims against WJHW that it did not assert against Burlington. Before the case was submitted to the jury, GPS and WJHW entered into a settlement agreement. WJHW agreed to pay GPS $300,000, and GPS agreed to release any claims against WJHW "connected with or resulting anywise out of a construction contract between Burlington Northern Railroad Company and GPS, the termination of that contract on March 23, 1995." As a result of the settlement, the trial court dismissed with prejudice GPS's causes of action against WJHW. Before the case was submitted to the jury, Burlington filed an election
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