A unanimous decision in a Texas Business Court case wraps up a two-week trial regarding claims that former senior executives utilized stolen proprietary systems to start a rival mineral brokerage

AUSTIN, Texas, March 13, 2026 — ES3 Minerals, LLC, an Austin-headquartered mineral acquisition and advisory firm, secured a trade secret victory in Texas Business Court after a 12-member jury unanimously determined that former executives had misappropriated the company’s proprietary systems to establish a competing mineral brokerage. The jury assessed ES3’s integrated trade secret system at over $40 million and granted $9 million in punitive damages.

The lawsuit, titled ES3 Minerals, LLC v. Kreines, Ryan, LMP, et al., Case Number 24-BC03B-0005, was heard in the Texas Business Court, Third Division (Austin), presided over by Judge Sweeten from February 24 to March 9, 2026.

The jury held Nicholas “Nick” Kreines, David Ryan, and Jettie Rangel (Jennings), all previously senior staff at ES3 Minerals, responsible for misappropriating ES3’s trade secrets related to the formation of Liberty Mineral Partners (LMP), a rival mineral rights brokerage. The panel unanimously concluded that the defendants collaborated in a coordinated scheme to covertly acquire and employ ES3’s confidential systems and data to create the competing enterprise.

Additional findings included:

• Finding of breach of fiduciary duty for Nick Kreines
• Finding of intentional interference with ES3 employment contracts for David Ryan and Liberty Mineral Partners
• Finding of fraudulent transfers designed to hide and transfer money linked to the rival business
• Finding of willful and malicious misappropriation of ES3’s trade secrets by all defendants

The jury placed a value of over $40 million on ES3’s integrated trade secret system and granted an extra $9 million in exemplary (punitive) damages. The decision came after a two-week trial that included testimony from sector specialists and economists regarding the worth of ES3’s proprietary mineral acquisition systems and business activities.

Trey Stanton, founder of ES3 Minerals, stated, “Fundamentally, this case centered on safeguarding the systems, technology, and enterprise we’ve developed at ES3. From day one, my objective has been to create a lasting company founded on integrity and responsibility. When the efforts and principles underlying that are contested, we feel it’s crucial to rise up and protect them.”

Stanton noted that pursuing legal action was fundamentally about defending the values that have steered the firm since its establishment.

“Taking legal action wasn’t a choice we made casually,” Stanton added. “But we felt it was essential to uphold the principles that are important to us—truthfulness, integrity, and ethical business conduct.”

The defendants had been senior figures on ES3’s leadership team prior to establishing Liberty Mineral Partners, a rival firm that quickly penetrated the mineral acquisition sector.

Michael Marin, chief trial attorney for ES3 Minerals, remarked, “This decision delivers an unmistakable signal that Texas courts and juries will make employees answerable when they misappropriate their employer’s most precious assets. Trey Stanton created something truly groundbreaking at ES3 by engineering a proprietary system that enabled a self-funded company without external capital to vie with private-equity-supported competitors in one of the energy sector’s most cutthroat markets. When his most trusted colleagues seized that system and turned it against him, the jury recognized the truth and issued a verdict that made each defendant responsible.”

Trial testimony centered on ES3’s proprietary systems and operational methodologies, which the firm had refined over years of operation and safeguarded as trade secrets. Court evidence indicated these systems were disclosed only to a restricted circle of senior executives and constituted a critical component of the company’s competitive edge in the mineral acquisition marketplace. The jury’s conclusions highlight the legal safeguards available to businesses when ex-employees abuse confidential commercial systems to start rival enterprises.

The lawsuit now proceeds to the post-trial stage, where the court will issue a final ruling and evaluate further remedies, which may include possible injunctive relief.

“Our attention now is precisely where it ought to be—on continuing to expand the business and serve the mineral owners we partner with daily,” Stanton said.

The case progressed from filing to verdict in under 15 months, demonstrating the Texas Business Court’s objective of offering an efficient venue for complicated commercial litigation.

About ES3 Minerals
ES3 Minerals is a mineral acquisition and advisory firm based in Austin, Texas, dedicated to assisting mineral owners in comprehending and optimizing the value of their mineral rights. The company collaborates directly with property owners to assess, lease, and purchase mineral and royalty interests throughout major U.S. energy basins. Established by Trey Stanton, ES3 merges conventional land knowledge with contemporary technology to provide clear, relationship-focused solutions for mineral owners. Additional information is available at www.es3minerals.com.

SOURCE ES3