California Employment Law Update

Tag Archives: misappropriation

November 2018 California Employment Law Notes

We invite you to review our newly-posted November 2018 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. The highlights include: Employee Non-Solicitation Provision Was An Unenforceable Restraint Employer Was Not Liable For Accident Involving Employee Who Was Talking On Her Cell Phone Injured Employee May Have Been … Continue Reading

Employee Non-Solicitation Provision Was An Unenforceable Restraint

AMN Healthcare, Inc. v. Aya Healthcare Servs., Inc., 2018 WL 5669154 (Cal. Ct. App. 2018) AMN and Aya are competitors in the business of providing travel nurses on a temporary basis to medical care facilities throughout the country. As a condition of employment with AMN, four of its “travel nurse recruiters” had signed a Confidentiality … Continue Reading

Employee Was Bound By Stipulated Injunction That Prohibited His Solicitation Of Customers

Wanke, Indus., Commercial, Residential, Inc. v. Superior Court, 209 Cal. App. 4th 1151 (2012) In an underlying lawsuit, Wanke sued its former employees Scott Keck and Jacob Bozarth for misappropriation of trade secrets, among other things. That lawsuit was settled, and the parties agreed to a stipulated injunction pursuant to which Keck, Bozarth and their … Continue Reading

Trade Secret Action Was Prosecuted In Bad Faith, $1.6 Million In Sanctions Upheld

FLIR Sys., Inc. v. Parrish, 174 Cal. App. 4th 1270 (2009) FLIR Systems purchased Indigo Systems, which manufactures and sells microbolometers (a device used in connection with infrared cameras, night vision and thermal imaging), for $185 million in 2004. William Parrish and Timothy Fitzgibbons were shareholders and officers of Indigo before the company was sold … Continue Reading

Trade Secret Action Was Prosecuted In Bad Faith, $1.6 Million In Sanctions Upheld

FLIR Sys., Inc. v. Parrish, 2009 WL 1653103 (Cal. Ct. App. 2009) FLIR Systems purchased Indigo Systems, which manufactures and sells microbolometers (a device used in connection with infrared cameras, night vision and thermal imaging), for $185 million in 2004. William Parrish and Timothy Fitzgibbons were shareholders and officers of Indigo before the company was … Continue Reading

Complaint Alleging Violation Of UTSA, Unfair Competition Was Not Subject To Dismissal Under Anti-SLAPP Law

World Fin. Group, Inc. v. HBW Ins. & Fin. Services, Inc., 172 Cal. App. 4th 1561 (2009) WFG filed a complaint against its direct competitor, HBW, and six of its agents for alleged breach of contract, misappropriation of trade secrets, conversion, unfair competition, interference with prospective economic advantage and unjust enrichment. In response, HBW filed … Continue Reading

Attorney And Her Clients Were Properly Sanctioned For Conduct Relating To Disclosure Of Trade Secrets

Wallis v. PHL Associates, Inc., 168 Cal. App. 4th 882 (2008) The trial court imposed approximately $43,000 in sanctions against Hygieia Biological Laboratories, its principals and their attorney in this case involving alleged misappropriation of trade secrets. During the course of the litigation, the parties agreed to a protective order, which the trial court issued, … Continue Reading

Non-Compete Agreements Were Unenforceable

Asset Marketing Systems, Inc. v. Gagnon, 542 F.3d 748 (9th Cir. 2008) Kevin Gagnon, doing business as “Mister Computer,” alleged that his former customer, Asset Marketing Systems (“AMS”), infringed his copyright in six computer programs that he wrote for AMS by continuing to use and modify them without his consent and that AMS misappropriated trade … Continue Reading

Statute Of Limitations For Trade Secrets Claim Dates From Time Of Owner’s Knowledge

Cypress Semiconductor Corp. v. Superior Court, 163 Cal. App. 4th 575 (2008) The trade secret owner in this case, Silvaco Data Systems, develops and licenses electronic design automation software. In late 1998, a former Silvaco employee, working for Circuit Systems, Inc. (“CSI”), incorporated Silvaco’s “SmartSpice” trade secrets into CSI’s product, “DynaSpice.” Silvaco sued the employee … Continue Reading

Employee Is Entitled To Recover Attorney’s Fees In Breach Of Contract Action Filed By His Former Employer

Profit Concepts Mgmt., Inc. v. Griffith, 162 Cal. App. 4th 950 (2008) Profit Concepts sued Greg Griffith, a former employee, for breach of contract and misappropriation of trade secrets in Orange County Superior Court. Griffith, who was an Oklahoma resident at the time, moved to quash service for lack of personal jurisdiction. (The contract contained … Continue Reading

New Employer May Have Misappropriated Trade Secrets And Interfered With Prior Employer’s Business

San Jose Constr., Inc. v. S.B.C.C., Inc., 155 Cal. App. 4th 1528 (2007) Richard Foust was a project manager for San Jose Construction (“SJC”) for 4½ years before he became dissatisfied with his job and accepted a position at a higher salary with South Bay Construction (“South Bay”), one of SJC’s competitors. Foust believed that … Continue Reading

Company Failed To Prove Trade Secret Misappropriation By Former Employee

Yield Dynamics, Inc. v. TEA Systems Corp., 154 Cal. App. 4th 547 (2007) Yield Dynamics, which develops and markets software products designed to facilitate the fabrication of microchips, sued its former employee, Terrence Zavecz, and two business entities of which he is a principal for breach of contract, violation of the Uniform Trade Secrets Act and related claims. … Continue Reading

Employee Who Stole Trade Secrets Is Required To Serve Jail Time

People v. Farell, 28 Cal. 4th 381 (2002) On his last day of employment as an electrical engineer at Digital Equipment Corporation, Alejandro Farell printed out confidential design specifications for certain computer chips, which could have been used in designing other technology. The evidence of Farell’s misappropriation was obtained during the execution of a search … Continue Reading
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