Monthly Archives: January 2011

Fifth Circuit Declines to Apply Restatement’s Burden Shifting Scheme in Proving Trade Secret Damages

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The Fifth Circuit reversed a denial of summary judgment on a misappropriation of trade secrets claim In MGE UPS Systems, Inc. v. GE Consumer and Industrial, Inc., et al., 612 F.3d 760 (5th Cir. 2010).  In that case, an owner of copyrighted software sued unauthorized user of the software for copyright infringement, misappropriation of trade secrets, unfair competition, and violation of Digital Millennium Copyright Act (DMCA). Continue reading

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Northern District Applies Cal. Code Civ. Proc. § 2019.210 Pre-Discovery Disclosure Requirements

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The Northern District applied California’s trade secret disclosure procedure, and found Plaintiff’s disclosure partially sufficient.  M.A. Mobile Ltd. v. Indian Institute of Technology Kharagpur, No. C08-02658 RMW (HRL), 2010 WL 3490209 (N.D. Cal. Sept. 3, 2010) (slip op.). Continue reading

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Unclean Hands Bars Suit Between Construction Contractors Where Subcontractor Failed to Pay Labor Code Prevailing Wages

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Plaintiff construction subcontractor appealed from a trial court ruling that its suit against the construction contractor was barred by the doctrine of unclean hands.  B & K Custom Cabinets, Inc. v. B.K. Ball, Inc., No. C060766, 2010 WL 3508321 (Cal. Ct. App. 3d Dist. Sept. 9, 2010).  The subcontractor B & K sued contractor Ball seeking to enforce a stop notice and asserting causes of action for breach of contract and violation of the prompt payment laws, all designed to recover $155,534 allegedly due under the subcontract. Id. *6.  Ball claimed it owed no more than $87,987, but because it had knowledge of B & K’s prevailing wage violation, Ball could not pay even that amount without exposing itself to liability under Labor Code section 1775 unless B & K provided “an affidavit signed under penalty of perjury” attesting that B & K employees had been paid the prevailing wages.” Id. (citing Lab. Code § 1775(b)). Continue reading

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Northern District Compels Pre-Certification Production of Class-wide Timecards and Payroll Records

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The Northern District granted a putative class representative’s motion to compel timecard and payroll records for all employees in Valenzuela v. MC2 Pool & Spa, et al., No. C09-01698 RS (HRL), 2010 WL 3489596 (N.D. Cal. Sept. 3, 2010). Continue reading

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Chief Judge Easterbrook Pointedly Denies Motion to Seal AT&T Mobility’s and Google’s Documents for Lack of Trade Secret Contention

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Chief Judge Easterbrook of the U.S. Court of Appeals for the Seventh Circuit pointedly denied a motion to seal documents in In re Specht, 2010 WL 3494676, No. 10-2823, — F.3d —-, 2010 WL 3494676 (7th Cir. Sept. 8, 2010).  As part of its opposition to plaintiff’s petition for writ of mandamus in which plaintiff sought recusal of the district court judge.  Id. *1.  Google and AT & T Mobility were asked to respond to the petition, and asked the Third Circuit to seal their indemnity agreement and other documents.  The court refused: “If Google and AT & T wanted to keep the documents’ terms secret, they should not have proffered them in response to Specht’s motion.” Id. *4. Continue reading

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Northern District Dismisses UTSA Cause of Action for Source Code Partially Filed With Copyright Office

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The Northern District dismissed a California Uniform Trade Secrets Act (UTSA or CUTSA) cause of action in a software code distribution case for failure to adequately allege secrecy. Kema, Inc. v. Koperwhats, No. C-09-1587 MMC, 2010 WL 3464708 (N.D. Cal. Sept. 1, 2010) (slip op.). Continue reading

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Northern District Notes That Trade Secret Law Allows Recovery of Saved Development Costs

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In a non-trade secrets intellectual property case, The Northern District of California noted, in dictum, that “trade secret law allows recovery of saved development costs.”  Oracle Corp. v. SAP AG, No. C 07-1658 PJH, — F.Supp.2d —-, 2010 WL 3258603, *14 (N.D. Cal. Aug. 17, 2010). Continue reading

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Los Angeles Jury Awards $157,000 After Trial in Trade Secrets Case

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A Los Angeles Superior Court jury awarded plaintiff an aggregate $157,000 verdict in Hong vs. Life University, an employment and trade secrets case.  37 Trials Digest 13th 12,  2010 WL 3454121 (Verdict Date June 28, 2010).

Plaintiff allegedly entered into an employment contract with defendant university for a five-year term to begin October 1, 2006.  Plaintiff alleged that defendants breached the agreement by firing him on June 15, 2007. Continue reading

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Second District Holds That Hotel Service Charge Reform Ordinance Is Not Preempted by Labor Code’s Tip Provisions

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Yesterday, the Second District issued an opinion addressing the validity of the Hotel Service Charge Reform Ordinance (Ordinance) enacted by the City of Los Angeles, which requires non-unionized hotels in the Century Corridor near Los Angeles International Airport (LAX) to pass along mandatory service charges to workers who render the services for which the charges have been collected.  Garcia v. Four Points Sheraton LAX, et al., Nos. B210720, B210716, B210719, B210726, B210730, — Cal. Rptr. 3d —-, 2010 WL 3491954 (Cal. Ct. App. 2d Dist. Sept. 8, 2010). Continue reading

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Central District Remands Minimum Wage and Overtime Class Action for Failure to Satisfy CAFA Amount in Controversy

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The Central District remanded a putative minimum wage and overtime class action suit in Munoz v. Central Parking Sys., Inc., No. CV 10-6172 PA (RCx), 2010 WL 3432239 (C.D. Cal. Aug. 30, 2010) (unpublished).

Plaintiff’s complaint attempted to avoid removal, stating “[i]t is believed that the total sum owed to the Class alleged herein is less than $5 million, based upon the anticipated size of the Class and the amount in controversy for each member of the Class.”  Id. *1. Continue reading

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