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  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
  • TALLEY DUNN GALLERY, L.L.C., et al  vs.  BRADLEY MILLEROTHER (CIVIL) document preview
						
                                

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DALLAS-DC-15-01598-CLR-VOL001 pdf: VOLUME 10F 1 Trial Court Cause No. DC-15-01598-J A Case No. 05-15-00444-CV Inthe 191° District Court of Dallas County, Texas Honorable GENA SLAUGHTER J udge Presiding BRADLEY B MILLER, Appellant(s) Vs. TALLEY DUNN GALLERY LLC, etal, Appellee(s) Appealed To The Court Of Appeals For The 5" District Of Texas, At Dallas, Texas Attorney for Appellant(s): Eric C Wood NAME: Scheef & Stone LLP ADDRESS: 2600 Network Blvd. Suite 400 Frisco TX 75034 TELEPHONE NO.: 214-472-2100 FAX NO.: 214-472-2150 E-MAIL ADDRESS: eric.wood@solidcounsel.com SBOT NO.: 24037737 ATTORNEY FOR: Bradley B Miller Delivered To The Court Of Appeals For The 5" District Of Texas, At Dallas, Texas On the 16™ day of April, 2015 FELICIA PITRE DISTRICT CLERK DALLAS COUNTY, TEXAS By Bridgette Vation, Deputy District Clerk DC-15-01598 BRADLEY B MILLER INTHE DISTRICT COURT Vs. DALLAS COUNTY, TEXAS TALLEY DUNN GALLERY 1915" JUDICIAL DISTRICT LLC, eal Feo Appeal #1 1 Cover Index Caption Judge’s Docket-Not Located. Plaintiffs’ Verified Original Petition For Injunctive Relief, February 11, 2015 Temporary Restraining Order, 36 February 11, 2015 Civil Case Information Sheet, 41 February 11, 2015 Order Of Preservation, 42 February 11, 2015 Order Granting Plaintiffs’ Motion For Expedited Discovery, 45 February 11, 2015 10 Defendant’s Original Answer, 47 February 20, 2015 11 Defendant’s Response In Opposition To Plaintiffs’ Application For 51 Temporary Injunction, February 24, 2015 12. Defendant’s First Amended Answer, 98 February 24, 2015 13. Agreed Order Extending Temporary Restraining Order, 102 February 25, 2015 Page 2 14. Plaintiffs’ Verified Amended Petition, 104 March 5, 2015 15. Trial Brief In Support Of Temporary Injunctive Relief On 142 Toritious Interference Claims, March 6, 2015 16. Order, 177 March 10, 2015 17. Defendant’s Objection To Plaintiffs’ Proposed Order Purporting To 178 Extend Temporary Restraining Order, March 10, 2015 18. Non-Signed Order, 185 March 10, 2015 19. Defendant’s Response To Plaintiff's Trial Brief In Support Of 186 Temporary Injunctive Relief On Tortious Interference Claims, March 11, 2015 20. Correspondence From Judge, 209 March 13, 2015 21. Defendant’s Objection To Plaintiffs’ Proposed Form Of Temporary 212 Injunction Order, March 17, 2015 22. Non-Signed Temporary Injunction, 234 March 18, 2015 23. Order Denying Defendant’s Motion To Dismiss, 248 March 19, 2015 24. Temporary Injunction, 250 March 19, 2015 25. Jury Demand, 264 March 19, 2015 26. Scheduling Order (Level 1 Of 2), 265 April 1, 2015 27. Notice Of Accelerated A ppeal By Defendant Bradley B Miller, 268 April 7, 2015 Page 3 28. Notice Of Accelerated Appeal By Defendant Bradley B Miller, 271 April 7, 2015 29. 5" COA Correspondence, 274 April 8, 2015 30. Clerk’s Record Request, 282 April 10, 2015 31 Request For Reporter’s Record, 284 April 10, 2015 32 Cost Bill 286 33, Clerk’s Certificate 292 THE STATE OF TEXAS COUNTY OF DALLAS In the 191°" District Court of Dallas County, Texas, the Honorable GENA SLAUGHTER Judge Presiding, the following proceedings were held and the following instruments and other papers were filed in this cause, to wit: Trial Court Cause No.: DC-15-01598 IN THE 191°" DISTRICT COURT BRADLEY B MILLER Vs. OF TALLEY DUNN GALLERY LLC, etal DALLAS COUNTY, TEXAS l DALLAS COUNTY 2/11/2015 10:37:38 AM 1CIT/ESERVE FELICIA PITRE DISTRICT CLERK DC-15-01598 Gay Smith NO TALLEY DUNN GALLERY, L.L.C. and TALLEY DUNN, IN THE DISTRICT COURT OF Plaintiffs, DALLAS COUNTY, TEXAS BRADLEY B. MILLER, ______ JUDICIAL DISTRICT Defendant. PLAINTIFFS’ VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF The TALLEY DUNN GALLERY, L.L.C. and TALLEY DUNN, Plaintiffs, complain of the tortious conduct of BRADLEY B. MILLER, Defendant, and for cause of action show the following: I. DISCOVERY CONTROL PLAN 1.01 Discovery will be conducted under Level 2 of Texas Rule of Civil Procedure 190. See Tex.R.Civ.P. 190.3. II. PARTIES 2.01 Plaintiff TALLEY DUNN GALLERY L.L.C. (“TD Gallery”) is a domestic limited liability company with its principal place of business located at 5020 Tracy Street, Dallas, Texas 75205. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 1 2.02 Plaintiff TALLEY DUNN (“Dunn”) is an individual residing in Dallas County, Texas and owns and operates the TD Gallery. 2.03 Defendant BRADLEY B. MILLER (“Miller”) is an individual residing in Dallas County, Texas. Miller may be served with process at 3355 Whitehall, Dallas, Dallas County, Texas 75229, (214) 923-9165. Il. JURISDICTION AND VENUE 3.01 Jurisdiction exists pursuant to, inter alia, Section 24.007(b) of the Government Code and Section 65.021(a) of the Civil Practices and Remedies Code. This suit is brought under the common law and statutes of the State of Texas to obtain injunctive relief against Defendant to stop the irreparable harm that Plaintiffs have sustained and will continue to sustain as a result of his unlawful and tortious conduct. This seeks only injunctive relief (plus attorney’s fees) against Defendant pursuant to Tex. R. Civ. P. 680 - 693 and Sections 65.001 — 65.045 of the Civil Practices and Remedies Code. 3.02 Venue is proper in Dallas, Dallas County, Texas pursuant to Section 15.002 (a)(1) and (a)(2) of the Civil Practice and Remedies Code. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 2 IV. BACKGROUND TO DISPUTE 4.01 The TD Gallery is located in Dallas, Texas. It exhibits contemporary art in a variety of media by established and emerging artists. The TD Gallery one of the most prominent art galleries of its kind in the region. 4.02 Dunn is a native of Dallas, the owner and operator of the TD Gallery, and an active community volunteer. Dunn has been a practicing art dealer in Dallas, Texas since 1990, and her business has been located at 5020 Tracy Street since 1999. Over her twenty-four year career in the art world, Dunn has built long-term relationships with artists, collectors, curators, critics, educators, and arts patrons from around the United States and abroad. 4.03 Dunn has earned an exemplary reputation in terms of professional integrity and business ethics. Over years of dedication to her community, her colleagues, and her profession, Dunn has distinguished herself and her business for her honesty, transparency, and good will. 4.04 The TD Gallery promotes and represents artists through exhibitions, acquisitions, publications, projects and ambitious programming. In addition to organizing year-round, rotating exhibitions and events at the TD Gallery, Dunn actively participates in off-site exhibitions and projects with museums, institutions, and galleries nationally and internationally. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 3 4.05 For over two decades, Dunn has cultivated key business relationships with artists, collectors, colleagues and professionals throughout Texas and around the world. Dunn works closely with artists, curators, arts professionals and those individuals interested in collecting contemporary art, having participated in art fairs in London, Basel, Madrid, Miami, New York, Dallas, Houston and Chicago. Dunn has developed strong business connections to the Texas collecting community, and she is a trusted adviser to private collectors and public collections of varying sizes around the country. 4.06 In connection with the sale and marketing of art to collectors, museums, corporations and institutions, the TD Gallery has expended substantial time, labor and money to develop key relationships, with both artists, collectors, art professionals, clients and patrons. The client lists of the TD Gallery, including their purchase history and pricing information, are confidential. Such information constitutes the TD Gallery's “trade secrets” within the meaning of the Texas Uniform Trade Secrets Act, TEX. CIv. P. & REM. CODE § 134A.002(6). 4.07 This confidential information is neither available to nor known by the general public or competing art galleries. The TD Gallery has taken substantial measures to prevent its trade secrets and confidential information from becoming VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 4 available to persons other than those selected by TD Gallery to have access to this information. 4.08 Defendant Miller is the former spouse of Dunn. During the course of their marriage and divorce proceeding, Miller gained access to the trade secrets and confidential information of the TD Gallery. This confidential information included the TD Gallery’s financial information, including the general ledger, operating and payroll accounts, and detailed financial information regarding transactions between the TD Gallery and artists, collectors, vendors and employees. This confidential information was produced in confidence to the Defendant and for the sole purpose of valuing the TD Gallery during the parties’ settlement negotiations. 4.09 One such confidential financial report of the TD Gallery obtained by the Defendant covers a time period from January 2, 2013 through October 24, 2013 (the “General Ledger”). The General Ledger is a 102 page confidential business report that includes current operating bank account numbers, payroll account numbers, private banking matters, and confidential financial transactions between the TD Gallery and artists, clients, employees and vendors. 4.10 Since 2013, Defendant Miller has waged a public campaign to disparage Dunn and the TD Gallery and interfere with the gallery’s business affairs. As part of his campaign, Defendant Miller, without Dunn’s knowledge, authorization or consent, VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 5 10 distributed and disclosed the confidential General Ledger to a variety of individuals. For example, on December 5, 2014, Defendant Miller emailed the General Ledger to various clients of the gallery and community leaders. 411 The General Ledger that Miller distributed includes all business activity involving the gallery’s vendors, clients, employees and artists that worked with the TD Gallery during that time period. It details both the monies collected from clients and distributed to artists. It details every source of income and expense for the TD Gallery, and the publication of this confidential document substantially interferes with Dunn’s business. 4.12 Defendant Miller is also using the General Ledger to contact clients and interfere with the business relationship that exists with the gallery. For example, in one email dated December 5, 2014, Miller unilaterally contacted a gallery client and blamed the client’s artwork purchases for Miller’s ninety-one (91) year old father being hospitalized. Miller accompanied the email harangue with a photograph of his ill father in the hospital, stating: Please take a look at the attached Talley Dunn Gallery Ledger, which Talley produced in discovery. Your name is prominently featured (on 6/21/13, 7/2/13, 8/5/13, 9/4/13, 10/2/13). Then take a look at the attached photo of my father in the Presbyterian ICU. That's what you —personally —were funding. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 6 11 Defendant Miller, in attempting to persuade the client to cease doing business with the TD Gallery, used the confidential General Ledger to interfere with the existing and prospective business relationship with this client. 4.13 Defendant Miller is also disrupting the business relationships that exist between Dunn, the TD Gallery and artists. For instance, Miller contacted an artist that Dunn represents, Joseph Havel, on June 20, 2014, and made false accusations about her business practices. Havel is the Director of the Glassell School of Art in Houston, Texas, and an artist who Dunn has represented for nearly fifteen (15) years. Similarly, Miller repeatedly contacted Matthew Sontheimer, an artist represented by the TD Gallery since 1999 and an Assistant Professor of Art at the University of Nebraska. Miller’s email onslaught prompted Sontheimer to request the University of Nebraska’s IT Department to block the Defendant's incoming emails. 4.14 Defendant Miller is also interfering with the employment relationships between the TD Gallery and its employees. For example, Defendant Miller sent a letter, documents, and unauthorized recordings of Dunn to Beth Taylor, the Director of TD Gallery. Miller sent the barrage of materials to Taylor in an effort to disrupt the critical professional relationship that Dunn has had with Taylor for nearly twenty (20) years. 4.15 In addition to community and business leaders, Defendant Miller has also contacted members of the Hockaday School community to denigrate Dunn and malign VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 7 12 her reputation. Dunn’s daughter attends first grade at the Hockaday School, and Dunn is serving her twelfth year on Hockaday’s Board of Trustees. During that time, Dunn has served as Chair of the Board of Trustees and chaired numerous committees, most recently of the Head of School Search Committee. She is also the immediate Past Chair of the Board. Defendant Miller has repeatedly phoned, emailed, and written board members to rage against Dunn, disparage her business, and accuse her of unethical business practices. 4.16 Defendant Miller even pursues the press to spread his malice and lies. For example, Miller contacted Patricia Mora, a freelance writer who has written for the Dallas Morning News and other publications, to smear Dunn’s business reputation. 4.17 There appears to be no limit to Miller’s vice and ill will. Miller has even contacted Dunn’s personal physicians to disparage her. Dunn suffers from multiple scleroses, and has been treated for the disease for over twenty (20) years. In December 2014, Defendant Miller emailed one of her physicians, attaching the gallery's General Ledger and attacking her character and integrity. 4.18 Miller engages in this pervasive campaign of unrelenting harassment knowing its effect of Dunn’s health and physical ability to operate her art gallery. Her physical presence at the gallery and gallery related events is essential, and Defendant Miller knows that any MS flare-up or setback brought upon her through the stress of his VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 8 13, pervasive harassment is detrimental to her ability to work and interferes with her business activities. 4.19 Miller’s vile and outrageous conduct and dishonesty are damaging Dunn’s reputation and harming her business, health, and family. His malicious behavior is also threatening others associated with the gallery. Miller has disclosed private information including the salaries of the gallery employees, the purchases made by clients, and the income received by artists to an unknown number of people. He is on an unending campaign to disparage Dunn and her business and interfere with its operations. COUNTI MISAPPROPRIATION AND/OR DISCLOSURE OF TRADE SECRETS - UNIFORM TRADE SECRETS ACT VIOLATION 5.01 Plaintiffs incorporate the allegations set forth in paragraph 1.01 through 4.19 of this Verified Original Petition. 5.02 Defendant Miller’s conduct violates the Texas Uniform Trade Secrets Act, TEX. CIV. P. & REM. CODE §§ 134A.001-134A.008 (“TUTSA”), and/or the common law of Texas. 5.03 During their marriage and/or divorce proceeding, Defendant obtained the TD Gallery’s confidential information, including the General Ledger, strictly for use in connection with the settlement of their marital estate and resolution of their divorce proceedings. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 9 14 5.04 The TD Gallery undertook reasonable steps to protect its confidential information from disclosure and misuse. In addition and during the divorce proceedings, the TD Gallery’s confidential information, including the General Ledger, was subject to a Confidentiality Order entered by the 330th District Court of Dallas County, Texas. The Confidentiality Order defined “confidential information” to include “all financial information and personal information of the parties,” including the General Ledger. 5.05 The Confidentiality Order prohibited and enjoined Defendant Miller from “broadcasting Confidential Information about Talley Dunn Gallery, LLC . . . to anyone, including but not limited to business associates, clients, customers, vendors, artists and the press.” In addition, the Confidentiality Order prohibited Defendant Miller from providing the General Ledger or other confidential information to any person or entity not a party to the divorce proceedings, excepting only experts and mediators who previously signed a non-disclosure agreement. 5.06 The Confidentiality Order also prohibited Defendant Miller from utilizing the General Ledger “for any purpose other than the mediation, settlement, preparation and trial, and/or appeal” of the divorce proceeding. Defendant Miller was also required to return or destroy the confidential information, including the General Ledger, within 120 days of the final judgment. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 10 15 5.07 The Confidentiality Order was subsequently vacated and replaced with another Order - signed on February 4, 2014 - that enjoined Defendant Miller from “making disparaging remarks, whether oral or written., regarding” Dunn and/or TD Gallery. This injunction remained in force until the final decree of divorce was entered in April 2014. 5.07 After the second injunction expired, Defendant Miller “misappropriated” and improperly disclosed the confidential information of the TD Gallery, including the General Ledger, without the express or implied consent of the Plaintiffs within the meaning of Section 134A.002(3)(B) of TUTSA. He also renewed his efforts to disparage Dunn and/or the TD Gallery in an effort to disrupt her business and impair its value. 5.08 At the time of the disclosure or use, Defendant Miller knew or had reason to know that his possession and knowledge of the trade secrets and confidential information of Dunn and/or the TD Gallery had been acquired under circumstances giving rise to a duty to maintain its secrecy or limit its use. See TEX. CIV. P. & REM. CODE §§ 134A.002(B)(ii)(b). 5.09 Actual or threatened disclosure of the TD Gallery’s General Ledger (and other confidential information) may be enjoined under TUTSA. See TEX. Clv. P. & REM. CODE §§ 134A.003. As a direct and proximate result of Defendant’s wrongful acts, Defendant has caused Plaintiffs to suffer, and will continue to suffer, irreparable harm. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 11 16 Plaintiffs, therefore, request that Defendant Miller be required to return all “confidential information” to Dunn that was obtained during the course of discovery during the divorce proceeding and be enjoined from utilizing, broadcasting or otherwise disclosing the confidential information of the TD Gallery, including the General Ledger, to anyone, including Plaintiffs’ business associates, clients, customers, vendors, artists and the press. COUNT II TORTIOUS INTERFERENCE WITH BUSINESS RELATIONS 6.01 Plaintiffs incorporate the allegations set forth in paragraph 1.01 through 5.09 of this Verified Original Petition. 6.02 The TD Gallery has existing contractual relationships and prospective advantageous contractual and business relationships with its artists, customers, clients, employees and vendors. Such contractual and prospective contractual relationships were and are known by the Defendant by virtue of his possession of Plaintiffs’ confidential business information. Such existing and prospective contractual and business relationships represent existing and a reasonable probability of future economic benefits to Plaintiffs. 6.03 Defendant has willfully and intentionally interfered, without privilege or justification, with one or more of those contractual relationships. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 12 17 6.04 Defendant has published, disclosed, used and continues to use Plaintiffs’ confidential information to induce artists, customers and clients to terminate or reduce their business with TD Gallery and to interfere with Plaintiffs’ business and employment relationships. 6.05 Defendant's interference was malicious and performed with the intent to prevent or disrupt contractual relationships from continuing or occurring and with the purpose of harming Plaintiffs. 6.06 Defendant committed these acts of willful and intentional interference without privilege or justification. Furthermore, Defendant's intentional interference with the TD Gallery’s existing and prospective business and employment relationships was committed with malice, with the intent to harm Plaintiffs and/or with reckless disregard and conscious indifference to the rights of Plaintiffs. 6.07 Defendant's tortious interference has directly and proximately caused, and will continue to cause, irreparable harm and injury to Plaintiffs. Unless enjoined, it will continue to cause such harm. COUNT III HARMFUL ACCESS BY COMPUTER VIOLATION 7.01 Plaintiffs incorporate the allegations set forth in paragraph 1.01 through 6.07 of this Original Petition. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 13 18 7.02 This cause of action is brought against Defendant pursuant to the Harmful Access by Computer Act, TEX. CIv. P. & REM. CODE §§ 143.001 et seq. Dunn and her property have been injured as a direct and proximate result of Defendant's violations of Chapter 33 of the Penal Code. 7.03 This claim is timely. It is brought before the earlier of the fifth anniversary of the date of the last act in the course of conduct constituting the statutory violation or the second anniversary of the date when Dunn first discovered or had reasonable opportunity to discover Defendant’s misconduct. 7.04 Defendant intentionally and/or knowingly, and without authorization from Dunn, accessed Plaintiff's smartphone and computerized data as defined in Section 33.01(11) of the Penal Code in violation of Section 33.02 of the Penal Code. Defendant has subsequently disseminated and published the data wrongfully obtained. 7.05 Pursuant to Section 143.002, Dunn is entitled to relief as a result of Defendant's violation of Chapter 33 of the Penal Code, including attorney’s fees. 7.06 Dunn seeks injunctive relief, including an order requiring Defendant to return all data, including copies thereof in whatever format it may exist, to Plaintiff and prohibiting Defendant from publishing or distributing any information obtained in violation of Chapter 33 of the Penal Code. COUNT IV TEXAS WIRETAPPING VIOLATION VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 14 19 8.01 Plaintiffs incorporate the allegations set forth in paragraph 1.01 through 7.06 of this Verified Original Petition. 8.02 Defendant Miller’s conduct violates the Interception of Communications Act, TEX. CIV. P. & REM. CODE §§ 123.001-123.004 (“ICA”). 8.03 Defendant attempted to intercept and intercepted communications of Dunn within the meaning of Section 123.001(1) of the ICA. Defendant Miller attempted to intercept and intercepted Dunn’s communications by concealing a digital recorder in Dunn’s car. 8.04 Dunn had a reasonable expectation of privacy for those communications intercepted by Defendant Miller. Dunn did not consent to her communications being intercepted by Defendant Miller. 8.05 In using the hidden digital recorder, Miller intercepted and acquired the contents of Dunn’s communications through the use of an electronic, mechanical or other device without the consent of any party to the communication(s) within the meaning of Section 123.001(2) of the ICA. 8.06 In violation of Section 123.002(a)(1) of the ICA, Defendant Miller intercepted and recorded, and attempted to intercept and record, Dunn’s business and personal communications and conversations while in her private car and without her VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 15 20 consent or knowledge. Defendant Miller also surreptitiously recorded face-to-face conversations with Dunn without her knowledge and consent. 8.07 Defendant Miller transcribed the secretly recorded conversations and distributed the conversations to third parties. In using or divulging information that Defendant knew was obtained by interception of the communication(s), Defendant Miller violated Section 123.002(a)(2) of the ICA. 8.08 As a result of Defendant's violations of the ICA, Dunn seeks an injunction against Defendant prohibiting any further interception, attempted interception or divulgence or use of information obtained by an interception as provided in Section 123.004(1) of the ICA. COUNT V TEXAS THEFT LIABILITY ACT VIOLATION 9.01 Plaintiffs incorporate the allegations set forth in paragraph 1.01 through 8.08 of this Verified Original Petition. 9.02 Defendant Miller’s conduct constitutes a violation of the Theft Liability Act, TEX. CIv. P. & REM. CODE §§ 134.001-134.005, as his conduct constituted theft of trade secrets under Section 31.05 of the Penal Code. 9.03 Plaintiffs are the owners and holders of certain trade secrets and other confidential and proprietary financial information, including the General Ledger of the VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 16 21 TD Gallery. The General Ledger constitutes a trade secret within the meaning of Section 31.05(a)(4) of the Penal Code. 9.04 Defendant knowingly, and without Plaintiffs’ effective consent, (a) appropriated property and confidential financial documents, including the General Ledger of the TD Gallery; (b) made a copy of the General Ledger in violation of Section 31.05(b)(2) of the Penal Code; and (c) communicated or transmitted the General Ledger in violation of Section 31.05(b)(3) of the Penal Code. 9.05 Defendant Miller’s unlawful taking was accomplished with the intent to deprive Plaintiff of their rights in and to the property, and caused Plaintiffs to suffer damages as a result of the theft. 9.06 As a result of such unlawful appropriation of Plaintiffs’ property and pursuant to Section 134.005 of the Civil Practices and Remedies Code, Plaintiffs seek to enjoin any further unlawful appropriation of Plaintiffs’ trade secrets and confidential information, including an order enjoining the Defendant from appropriating any property and/or confidential financial documents, including the General Ledger of the TD Gallery, making a copy of the General Ledger in violation of Section 31.05(b)(2) of the Penal Code and communicating or transmitting the General Ledger in violation of Section 31.05(b)(3) of the Penal Code. COUNT VI APPLICATION FOR INJUNCTIVE RELIEF VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 17 22 10.01 Plaintiffs incorporate the allegations set forth in paragraph 1.01 through 9.06 of this Original Petition. 10.02 Defendant has willfully and intentionally interfered with the rights of Plaintiffs and breached common law and statutory obligations owed to Plaintiffs 10.03 Plaintiffs will suffer irreparable harm for which no adequate remedy at law exists if Defendant is not enjoined from continuing his current course of action and from exploiting TD Gallery’s confidential information and disrupting its relationships with customers, artists, employees and others. 10.04 Even if Plaintiffs’ damages could be calculated and quantified, Plaintiffs have no assurances that Defendant will be sufficiently solvent to provide adequate relief. 10.05 A temporary restraining order, temporary injunction and permenant injunction is necessary to preserve Plaintiffs’ rights. 10.06 There is a substantial likelihood that Plaintiffs will prevail on the merits because Defendant has used and disclosed confidential information and improperly interfered with Plaintiffs’ business, employees, customers and artists. Plaintiffs are entitled to an injunction to require Defendant to cease his misappropriation, disclosure, tortious interference and other tortious conduct. Wrongful, damaging conduct has occurred and will continue to occur if not enjoined. VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 18 23 10.07 The threatened injury to Plaintiffs outweighs any possible damage to Defendant. Defendant would lose nothing by such an injunction except that which he cannot perform lawfully—disclosure of Plaintiffs’ confidential information and interference with business relations. 10.08 The public interest is served by an injunction as it protects the substantial investment made by Plaintiffs in developing a successful business in Dallas County, Texas. CLAIM FOR ATTORNEY'S FEES 11.01 By reason of the above and foregoing, Plaintiffs are entitled to recover attorney’s fees in a sum that is reasonable in relation to the amount of work expended. In this regard, Plaintiffs will show that counsel was engaged to assist in the prosecution of this action and seek reasonable attorney’s fees. PRAYER FOR RELIEF Plaintiffs request the following equitable and legal relief: 1 That the Court, upon hearing, enter a temporary and then a permanent injunction restraining and enjoining Defendant, his agents, servants, employees, and all persons acting in concert with him from: + Broadcasting confidential information (including the General Ledger) of Dunn and/or the TD Gallery to anyone, including but not limited to Plaintiffs’ business associates, clients, customers, vendors, artists and other persons; VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 19 24 * Disclosing, using, publishing or distributing any confidential business information of Dunn and/or TD Gallery (including the General Ledger) derived from or identified in any customer list, printed or electronic material, or other information secured from Dunn and/or the TD Gallery or its present or past employees, or using such information in order to encourage, persuade, induce or invite artists or customers to refrain, cease or reduce doing business with the TD Gallery and/or Dunn; In any other manner using or disclosing any Confidential Information, including any customer list or other Dunn and/or TD Gallery financial data; Contacting artists, collectors, curators, clients, customers, vendors or other business associates of Dunn and/or the TD Gallery with the intent to interfere, disrupt or damage the existing or prospective business relationships that exist between those artists, collectors, curators, clients, customers, vendors or other business associates and Dunn and/or the TD Gallery; Making, copying or reproducing in any way any confidential information, including any customer or price list or general ledger, in whole or in part, or other, whether in printed or electronic form, relating to Dunn and/or the TD Gallery and secured from Dunn and/or the TD Gallery; Failing to immediately return to Plaintiffs the originals and all copies of any of Dunn’s and/or the TD Gallery’s Confidential Information, including, but not limited to, all general ledgers, client lists, product and pricing information, business plans, marketing materials, supplier lists and other trade secrets, confidential information or financial data; Prohibiting Defendant from publishing or distributing any information obtained in violation of the Harmful Access by Computer Act and/or Chapter 33 of the Penal Code; Intercepting or attempting to intercept the communications of Dunn through the use of an electronic, mechanical or other device without the consent of a party to the communication; VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF PAGE 20 25 ¢Using or divulging information that Defendant knows or reasonably should know was obtained by interception of the communication(s) in violation of Section 123.002(a)(2) of the Interception of Communications Act; Failing to immediately return to Dunn the originals and all copies of any intercepted communications of Dunn that were obtained without her consent; and ¢Making a copy of the General Ledger in violation of Section 31.05(b)(2) of the Penal Code and/or communicating or transmitting the General Ledger in violation of Section 31.05(b)(3) of the Penal Code. 2 That Plaintiffs recover their attorneys’ fees, as well as all costs of court, pre-judgment interest, and such other and further relief, at law or in equity, to which it may be justly entitled. JACKSON LEWIS P.C. 500 N. Akard Street, Suite 2500 Dallas, Texas 75201 PH: (214) 520-2400 FX: (214) 520-2008 whaler Dan Hartsfield State Bar No. 09170800 dan.hartsfield@jacksonlewis.com Talley Parker State Bar No. 24065872 talley.parker@jacksonlewis.com VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF AND DAMAGES PAGE 21 26 STATE OF TEXAS § § VERIFICATION COUNTY OF DALLAS § BEFORE ME, the undersigned Notary Public, on this day personally appeared Talley Dunn, who, after being duly sworn, stated under oath that she is a Plaintiff in the above-styled action and a duly authorized agent and representative of the Talley Dunn Gallery, L.L.C., that she has read the Verified Original Petition and Application for Injunctive Relief and that the facts contained in the Petition, including the facts stated in paragraphs 4.01 through 4.19, are true and correct and within her personal knowledge. Tam also providing an affidavit in support of the request for injunctive relief. In accord with Local Rule 2.02(b), I certify that I sincerely believe that notice to Defendant would impair or annul the Court’s power to grant relief because the subject matter of this petition (i.e., to stop improper distribution of confidential information, business disparagement and tortious interference) could be accomplished. If Defendant Miller is given advance notice of the application for injunctive relief, I believe he will accelerate his publication of the confidential information prior to the entry of relief and/ or may destroy relevant evidence if notice was required. Sod Liags ficenn) — SUBSCRIBED AND SWORN TO BEFORE ME, the undersigned authority, on this S day of February, 2015, to certify which witness my hand and official seal. a DELANEY WATERS MY COMMISSION EXPIRES January9, 2017 eS My Commission Expires: Wali VERIFIED ORIGINAL PETITION FOR INJUNCTIVE RELIEF AND DAMAGES PAGE 22 27 NO. TALLEY DUNN GALLERY, L.L.C. and TALLEY DUNN, IN THE DISTRICT COURT OF Plaintiffs, DALLAS COUNTY, TEXAS BRADLEY B. MILLER, _____ JUDICIAL DISTRICT Defendant. AFFIDAVIT OF TALLEY DUNN IN SUPPORT OF INJUNCTIVE RELIEF On this day personally appeared, Talley Dunn, who, being by me duly sworn, upon her oath, deposed and stated as follows: 1 My name is Virginia Talley Dunn. I am the sole owner of Talley Dunn Gallery, L.L.C. located at 5020 Tracy Street (“TD Gallery”). I am also the sole owner of WAG Partners, L.P. which owns the gallery property on Tracy Street. I have been a practicing art dealer in Dallas, Texas since 1990, and my business has been located at 5020 Tracy Street since 1999, I have three full-time employees at the TD Gallery, and it is open six days a week. I have built the TD Gallery into one of the most prominent businesses of its kind in the region. AFFIDAVIT OF TALLEY DUNN Page 1 EXHIBIT A 2. Iam recently divorced from Bradley B. Miller as of April 3, 2014, and I am the mother of Virginia Miller who is seven years old. I am the primary financial support for my daughter, as I provide all of her needs from housing to private school education and all activities to her health insurance. My only source of income for myself and my daughter is my business, the TD Gallery. 3 Since 2013, Bradley Miller has been on a public campaign to disparage me and disrupt my business. On December 5, 2014, he emailed the entire 2013 General Ledger for TD Gallery to clients of the gallery and community leaders. This 102 page document is a private and confidential record of my business that was produced to him during my divorce for the exclusive purposes of determining the business’s worth during our settlement negotiations. During the divorce proceedings, it was subject to a Confidentiality Order entered on December 9, 2013 by the 330th District Court of Dallas County, Texas, which order was vacated and replaced by a Temporary Injunction entered on February 4, 2014 that enjoined Defendant Miller from “making disparaging remarks, whether oral or written, regarding” me or the TD Gallery. 4 The General Ledger that Mr. Miller has sent via email includes all activity from my business for 2013. It included every vendor, client, and artist that worked with the gallery that year. It details the amount of monies collected from clients and the amount of monies distributed to artists that I represent. The document also details AFFIDAVIT OF TALLEY DUNN Page 2 29 every source of income and expense for the gallery. All in all, it is a detailed report of all business activity for 2013. This is an internal document that contains private and confidential information. Sharing this document, as Mr. Miller has done, threatens my business, particularly for those artists and clients who do not wish for this private information to be made public. 5 In an email dated December 5, 2014, Mr. Miller emailed a gallery client citing that her purchasing artwork from the TD Gallery had led directly to putting his ninety-one year old father in the hospital. He wrote the following to the gallery client, “please tak