Tag Archives: United States

Northern District Denies Preliminary Injunction Where Plaintiff’s Declaration Failed to Show Customer List Was the Result of Substantial Time, Expense and Effort on Part of Plaintiff

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The Northern District of California denied defendants’ motion to dismiss based on UTSA preemption and denied plaintiff’s motion for preliminary injunction.  Kovesdy v. Kovesdy, C 10-02012 SBA, 2010 WL 3619826 (N.D. Cal. Sept. 13, 2010) (slip op.). Plaintiff Eric Kovesdy (“Eric” or “Plaintiff”) sued his stepmother, Defendant Hedy Kovesdy (“Hedy”) for, inter alia, for misappropriation of trade secrets under California’s Uniform Trade Secrets Act (“UTSA”), Cal. Civ. Code §§ 3426-3426.11, and trademark infringement under the Lanham Act, 15 U.S.C. § 1125(a). Id. (1) Defendants moved to dismiss; and (2) Plaintiff moved for preliminary injunction.

Background

Peter Kovesdy (“Peter”) opened a professional tax practice known as Humex Income Tax (“Humex”).   Continue reading

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Surprising Side Effect of the Minimum Wage: Finishing High School

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The National Bureau of Economic Research report suggests a surprising effect of the minimum wage: finishing high school.  As reported by Kevin Lewis of the Boston Globe:

By curtailing low-wage/low-skill jobs, the minimum wage motivates young people to stay in school and become skilled. This effect then generates what the author calls an “educational cascade” by setting an example for the upcoming class of students. He estimates that the average male born in 1951 gained 0.2 years — and the average male born in 1986 gained 0.7 years — of high school due to the cumulative effect of the minimum wage.

Sutch, R., “The Unexpected Long-Run Impact of the Minimum Wage: An Educational Cascade,” National Bureau of Economic Research (September 2010).

By CHARLES JUNG

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Third Circuit Affirms Award of Damages in Misappropriation of Trade Secrets Case and Denial of Recovery on Injunction Bond After Employee’s Partial Success on Appeal

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The United States Court of Appeals for the Third Circuit affirmed the district court’s award of damages against employees on a claim brought by their former employer for, inter alia, misappropriation of trade secrets.  Latuszewski v. Valic Financial Advisors, Inc., No. 08-1511, 2010 WL 3582434 (3rd Cir. Sept. 15, 2010).   Former employer, VALIC Financial Advisors, Inc., bought claims against former employees Gary Latuszewski and James Rogan alleging breach of contract, breach of fiduciary duty, misappropriation of trade secrets, and tortious interference with contract. Id. *1. Employees appealed arguing that this award was in error and also that the District Court erred in declining to award them damages under VALIC’s injunction bond after this court vacated part of the District Court’s temporary injunction against them. Id. Continue reading

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After Bench Trial on UCL Claim, Northern District Finds “On-Job Supervisor” Properly Classified as Exempt Under Administrative Exemption

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District Judge Susan Illston of the Northern District of California conducted a bench trial of plaintiff’s overtime claim under the Unfair Competition Law (“UCL”) and found that defendant UPS met its burden of proving that plaintiff was properly classified as falling within the administrative exemption in his role as “On-Job Supervisor”.  Lopez v. United Parcel Service, Inc., C 08-05396 SI, 2010 WL 3630619 (N.D. Cal. Sept. 14, 2010).

Background

Plaintiff Ben Lopez sued defendant United Parcel Service, Inc. (“UPS”) contending that UPS improperly classified him as an employee exempt from overtime compensation under California law. Id. *1. Continue reading

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Central District Rejects Opt-Out Procedure and Orders Disclosure of Name and Contact Information for Members of an Unpaid Commission Wages Class Action

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The Central District granted plaintiff’s motion to compel disclosure of the name and contact information (full name, last known addresses and telephone numbers) for class members of a putative class action for unpaid commission wages.  Celia Alvarez, et al. v. The Hyatt Regency Long Beach, et al., CV 09-04791-GAF (VBKx).  According to the court, the class was defined as all non-exempt employees for the period commencing May 7, 2005.  (Thank you to Radhika Sainath for alerting me to the decision.)

Defendants contended that the information was not relevant for class certification and invaded the privacy rights of the putative class.  Plaintiffs offered to enter into a protective order and offer that the information be given to a third party who would send the class members an opt-out letter.  Defendant rejected these proposal. Continue reading

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Northern District Rejects Motion to Dismiss Misappropriation of Trade Secrets Claim

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In Farhang v. Indian Institute Of Technology, Kharagpur, No. C-08-02658 RMW, WL 3504897 (N.D. Cal. Sept. 7, 2010), Defendant Indian Institute of Technology, Kharagpur (“IIT”) moved to dismiss a complaint for misappropriation of trade secrets on the grounds that it failed to allege sufficient facts showing that: (1) the alleged trade secrets were subject to reasonable efforts to maintain their secrecy; (2) IIT misappropriated trade secrets; and (3) plaintiffs suffered harm as a result.  Id. *1.  The court denied the motion. Continue reading

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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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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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