“If this court grants certiorari review and finds that the district court should determine the preclusive effect of a judgment, it would belie the Fifth Circuit’s rationale,” Ascension stated in its filing.
The dispute arose from a contract under which Pairprep was to deliver data extraction services to Ascension. Ascension terminated the agreement after alleging Pairprep’s servers suffered a data breach and failed to provide reliable data.
Litigation and Arbitration Battles
Ascension initially pursued arbitration against Pairprep for damages tied to the breach. Pairprep countered by suing Ascension in Texas federal court, citing breach of contract and violations of the Defend Trade Secrets Act. However, these claims were referred to arbitration, where Pairprep asserted them as counterclaims.
Complicating matters, Pairprep accused Altada Technology Solutions, allegedly a joint enterprise with Ascension, of involvement in the arbitration claims. While Pairprep filed a related federal suit against Altada, the case was dismissed with prejudice following a settlement.
