Southern California Institute of Law v. TCS Education System et al

Filing 71

MINUTES OF Motion to Dismiss Portions of Plaintiff's First Amended Complaint 48 . Defendant TCS Education Motion to Dismiss Plaintiff's First Amended Complaint 49 Hearing held before Judge John A Kronstadt: The Court grants the motion to dismiss without leave to amend as to the second cause of action for negligent misrepresentation against TCS. The Court denies the motion to dismiss the third cause of action for misappropriation of trade secrets as to Defendant TCS, but grants the motion to dismiss the third cause of action as to Defendants Figuli and HEG, with leave to amend, so the Plaintiff can determine whether the agency claims regarding the Defendants can, in good faith, be pleaded in the alternative. (See attached Minute Order for further information). The Court denies the motion to dismiss the fifth cause of action for a violation of the unfair competition law. Plaintiff shall file its second amended complaint no later than 10/17/2011. The Court sets a Status Conference re Settlement for 11/28/2011 at 1:30 PM. Counsel shall file a joint report regarding their respective views on a settlement procedure by 11/21/2011. The Court will determine whether the 11/28/2011 hearing is necessary upon review of the report. Court Reporter: Alex Joko. (jp)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

LA CV10-08026 JAK (AJWx)

Title

Southern California Institute of Law v. TCS Education System, et al.

Present: The Honorable

Date

October 3, 2011

JOHN A. KRONSTADT, UNITED STATES DISTRICT JUDGE

Andrea Keifer

Alex Joko

Deputy Clerk

Court Reporter / Recorder

Attorneys Present for Plaintiffs:

Attorneys Present for Defendants:

George A. Shohet

Jeffrey S. Whittington
Cody Jaffe

Proceedings:

DEFENDANTS DAVID J. FIGULI AND GLOBAL EQUITIES LLC’S MOTION
TO DISMISS PORTIONS OF PLAINTIFF’S FIRST AMENDED COMPLAINT
(Dkt. 48)
DEFENDANT TCS EDUCATION SYSTEM’S MOTION TO DISMISS
PLAINTIFF’S FIRST AMENDED COMPLAINT (Dkt. 49)

The motion hearing is held. The Court expresses its tentative views on the record. Counsel for Plaintiff
and Defendants address the Court. The Court grants the motion to dismiss without leave to amend as
to the second cause of action for negligent misrepresentation against TCS. No facts are alleged as to
any misrepresentation, only a claim as to a breach of implied promise. This is the same defect noted by
Judge Gutierrez as to the prior version of the complaint. Accordingly, there is no basis for a further
effort to amend. The Court denies the motion to dismiss the third cause of action for misappropriation of
trade secrets as to Defendant TCS, but grants the motion to dismiss the third cause of action as to
Defendants Figuli and HEG, with leave to amend, so the Plaintiff can determine whether the agency
claims regarding the Defendants can, in good faith, be pleaded in the alternative. The motion to
dismiss the fourth cause of action for tortious interference with contract is granted with leave to amend.
Plaintiff’s counsel is directed to be mindful of the obligations to plead in good faith given the
aforementioned agency issue. Thus, if Figuli and HEG are agents of TCS, in general neither could
interfere with a TCS contract because they could be deemed to be the equivalent of a party to the
contract. The Court denies the motion to dismiss the fifth cause of action for a violation of the unfair
competition law. Plaintiff shall file its second amended complaint no later than October 17, 2011.
Counsel confer with the Court regarding a settlement procedure. Counsel shall confer regarding
discovery and whether the parties believe a settlement conference with a Magistrate Judge or a thirdparty neutral would be productive. The Court sets a status conference re settlement for November 28,
2011 at 1:30 p.m. Counsel shall file a joint report regarding their respective views on a settlement
procedure by November 21, 2011. The Court will determine whether the November 28, 2011 hearing is
necessary upon review of the report.
IT IS SO ORDERED.
:
Initials of Preparer

CV-90 (10/08)

CIVIL MINUTES - GENERAL

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