Austin jury finds former executives misappropriated ES3 Minerals trade secrets, awards more than $49 million in damages

Unanimous verdict in Texas Business Court case concludes two-week trial over allegations that former senior executives used stolen proprietary systems to launch a competing mineral brokerage

AUSTIN, Texas, March 13, 2026 /PRNewswire/ -- ES3 Minerals, LLC, an Austin-based mineral acquisition and advisory company, won a trade secret verdict in Texas Business Court after a 12-person jury unanimously found that former executives misappropriated the company's proprietary systems to launch a competing mineral brokerage. The jury valued ES3's integrated trade secret system at more than $40 million and awarded $9 million in exemplary damages.

The case, ES3 Minerals, LLC v. Kreines, Ryan, LMP, et al., Cause No. 24-BC03B-0005, was tried in the Texas Business Court, Third Division (Austin), before Judge Sweeten from February 24 through March 9, 2026.

Jurors found Nicholas "Nick" Kreines, David Ryan, and Jettie Rangel (Jennings), all former senior employees of ES3 Minerals, liable for misappropriating ES3's trade secrets in connection with the launch of Liberty Mineral Partners (LMP), a competing mineral rights brokerage. The jury unanimously found that the defendants acted together in a coordinated effort to secretly take and use ES3's confidential systems and information to establish the competing venture.

Additional findings included:

• Breach of fiduciary duty against Nick Kreines
• Intentional interference with ES3 employee agreements against David Ryan and Liberty Mineral Partners
• Fraudulent transfers intended to conceal and move funds associated with the competing business
• Willful and malicious misappropriation of ES3's trade secrets by all defendants

The jury valued ES3's integrated trade secret system at more than $40 million and awarded an additional $9 million in exemplary (punitive) damages. The verdict followed a two-week trial featuring testimony from industry experts and economists on the value of ES3's proprietary mineral-acquisition systems and business operations.

"At its core, this case was about protecting the systems, technology and business we've built at ES3," said Trey Stanton, founder of ES3 Minerals. "From the beginning, my goal has been to build a generational company grounded in integrity and accountability. When the work and values behind that are challenged, we believe it's important to stand up and defend them."

Stanton said pursuing the case was ultimately about standing up for the principles that have guided the company since its founding.

"Pursuing the case wasn't a decision we took lightly," Stanton added. "But we believed it was important to stand up for the principles that matter to us – honesty, integrity and ethical business practices."

The defendants were senior members of ES3's leadership team before forming Liberty Mineral Partners, a competing firm that rapidly entered the mineral acquisition market.

"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," said Michael Marin, lead trial counsel for ES3 Minerals. "Trey Stanton built something genuinely innovative at ES3 by developing a proprietary system that allowed a bootstrapped company with no outside funding to compete with private-equity-backed rivals in one of the most competitive markets in the energy sector. When his most trusted people took that system and used it against him, the jury saw through it and returned a verdict that held every defendant accountable."

Testimony at trial focused on ES3's proprietary systems and business methods, which the company developed over years of operations and protected as trade secrets. According to evidence presented in court, these systems were shared with a limited group of senior executives and formed a key part of the company's competitive advantage in the mineral acquisition market. The jury's findings underscore the legal protections afforded to companies when former employees misuse confidential business systems to launch competing ventures.

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.

"Our focus now is exactly where it should be, which is continuing to grow the business and deliver for the mineral owners we work with every day," Stanton said.

The trial moved from filing to verdict in less than 15 months, underscoring the Texas Business Court's goal of providing an efficient forum for complex commercial disputes.

About ES3 Minerals
ES3 Minerals is an Austin, Texas-based mineral acquisition and advisory company focused on helping mineral owners understand and maximize the value of their mineral rights. The company partners directly with landowners to evaluate, lease and acquire mineral and royalty interests across key U.S. energy basins. Founded by Trey Stanton, ES3 combines traditional land expertise with modern technology to deliver transparent, relationship-driven solutions for mineral owners. For more information, visit www.es3minerals.com.

SOURCE ES3