In a recent decision, the federal Ninth Circuit Court of Appeals joined a growing number of federal courts that have limited the use of the Computer Fraud and Abuse Act ("CFAA") in suits brought against former employees accused of taking data from a company’s computer system before leaving the company.
Carolyn Sieve
Claims of Intentional Interference, Breach of Duty of Loyalty, and Unfair Competition Survive Preemption by California Uniform Trade Secrets Act
By Carolyn Sieve on
Posted in Trade Secrets
By Carolyn Sieve and summer associate Rina Wang
A California federal court has added to the body of decisional law on preemption under the California Uniform Trade Secrets Act, Cal. Civ. Code §§ 3426, et seq. (“CUTSA”). In Aversan v. Jones, No. 2:09-cv-00132-MCE-KJM, 2009 WL 1810010 (E.D. Cal. June 24, 2009), the Court denied defendants’ motion to dismiss plaintiff’s claims…
FLIR Systems, Inc. v. Parrish: A Cautionary Tale for Trade Secrets Misappropriation Plaintiffs
By Carolyn Sieve on
Posted in Trade Secrets
The California Court of Appeal’s recent decision in FLIR Systems, Inc. v. Parrish, 2d Civil No. B209964, 2009 WL 1653103 (Cal. App. 2d Dist. June 15, 2009), affirming a $1.6 million attorney fee award to defendants upon a finding that the action was brought in bad faith, provides a useful and interesting discussion of various factors that may lead…
California Court of Appeal Slaps Down Use of Anti-SLAPP Motion In Trade Secrets Case
By Carolyn Sieve on
Posted in Trade Secrets
Under California Civil Procedure Code section 425.16, a defendant sued for exercising its constitutional rights may assert that the action is Strategic Litigation Against Public Participation (“SLAPP”) and move to strike the complaint on that basis. Section 425.16, also known as the “anti-SLAPP statute,” when properly invoked, can be a powerful defense tool because it imposes an automatic stay on discovery…
Former Employer’s Suggestion To Customers To Refrain From Doing Business With Alleged Misappropriator Not Actionable As Defamation
By Carolyn Sieve on
Posted in Restrictive Covenants, Trade Secrets
In almost every trade secret/restrictive covenant dispute, a company whose trade secret information has been stolen must confront the possibility that its customers will be dragged into the dispute. One company decided to take the bull by the horns pre-litigation and sent a letter to all of its customers notifying them of a misappropriation by one of its former employees…
California Appeals Court Upholds 5-Year, Statewide Non-Competition Covenant Contained In Agreement To Purchase Business
By Carolyn Sieve on
Posted in Restrictive Covenants
Alliant Insurance Services, Inc. v. Gaddy, No. C055192, 2008 WL 331065 (Cal. App. 3 Dist., Feb. 07, 2008)
On February 7, 2008, the California Court of Appeals affirmed a preliminary injunction, enjoining defendant G. Scott Gaddy from competing against his former employer, Alliant Insurance Services, Inc., within the entire state of California. The appellate court also upheld a non-solicitation provision…