(PS) Universal Security and Fire, Inc. v. Yanez

Filing 17

ORDER signed by District Judge Troy L. Nunley on 6/29/2017 GRANTING #7 Plaintiff's Motion for Preliminary Injunction, as to Alpha Alarm & Audio, Inc. (Reader, L)

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Javed I. Ellahie (SBN 63340)
Omair M. Farooqui (SBN 207090)
Leila N. Sockolov (SBN 282946)
Ellahie & Farooqui LLP
12 South First Street, Suite 600
San Jose, California 95113
Telephone: [phone]
Facsimile: [phone]

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Attorneys for Plaintiff
UNIVERSAL SECURITY AND FIRE, INC.

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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF CALIFORNIA
SACRAMENTO DIVISION

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UNIVERSAL SECURITY AND FIRE, INC.,
a California Corporation,

Case No: 2:17-CV-00844-TLN-CKD
STIPULATION AND ORDER

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Plaintiff,
vs.
ALPHA ALARM & AUDIO, INC., a
California Corporation; FRANK CHARLES
YANEZ, an Individual; and DOES 1 through
30, Inclusive,

Date: July 13, 2017
Time: 2:00 p.m.
Courtroom: 2, 15th Floor
Hon. Troy L. Nunley

Defendants.

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WHEREBY, on April 21, 2017, Plaintiff UNIVERSAL SECURITY AND FIRE, INC.
(“USF”) filed a Complaint against Defendants ALPHA ALARM & AUDIO, INC. (“Alpha”),
and FRANK CHARLES YANEZ (“Yanez”), and Doe Defendants 1 through 30.

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USF has alleged that each Defendant, individually and in concert with the other Defendants,
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have engaged in (1) Misappropriation of Trade Secrets under Federal Defend Trade Secrets
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Act (“FDTSA”); (2) Misappropriation of Trade Secrets under California Uniform Trade
Secrets Act (“CUTSA”); (3) Unfair Business Practices; (4) Breach of Duty of Loyalty; (5)

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STIPULATION AND ORDER
Page 1 of 4

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Intentional Interference with Prospective Economic Advantage; (6) Negligent Interference

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with Prospective Economic Advantage; (7) Accounting of Monies Owed by Defendants to

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USF; and (8) Conversion.

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WHEREBY, on July 13, 2017, pursuant to Rule 65 of the Federal Rules of Civil
Procedure (“FRCP”), 18 U.S.C. §1836, California Civil Code §3426.2, and California
Business and Professions Code §17203, USF sought injunctive relief prohibiting Alpha and
Yanez from any further acquisition, use, or disclosure of USF’s trade secrets and confidential,

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proprietary information, including customer identification, bid opportunities, fire alarm
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designs, and USF’s bidding information that Defendant Yanez took with him when he left
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USF to join competitor Alpha, and from engaging in any further breaches of duty or acts of
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unfair competition in connection therewith. USF’s Motion was based upon its Notice of
Motion and Motion, the accompanying Memorandum of Points and Authorities; the

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supporting Declaration of Dale Haring and the exhibits thereto, USF’s Complaint, and such

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other evidence and argument as was presented to the Court at hearing.

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NOW THEREFORE, the undersigned parties and/or their attorneys of record hereby

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stipulate to entry of this Order to effectuate a more expeditious and efficient resolution of the

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above-captioned litigation. The Court finds that the balance of equity and interests of justice

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support granting relief. Accordingly, this Court enters the following order:

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1.

Directing Defendant Alpha to deliver immediately to USF all copies of

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documents, whether in paper form or stored in an electronic medium, containing USF

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confidential information Alpha possesses, if any, or has in its custody or control, including,

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without limitation, all such documents that contain USF’s customer identification, bid
opportunities, fire alarm and other life safety system designs, security system designs, bidding
information, drawing templates, policies, procedures, project reports, customer contracts, and
customer as-built information;

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STIPULATION AND ORDER
Page 2 of 4

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2.

Defendant Alpha, and all those acting in concert or participation with it, are

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hereby enjoined from utilizing in any way USF confidential and/or trade secret information

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that Yanez obtained while employed by USF, to directly or indirectly solicit, continue to

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solicit and/or initiate contact with any USF customers whose accounts were assigned to Yanez
or any USF personnel while Yanez was employed by USF.
3.

Restraining and enjoining Alpha from directly or indirectly using, accessing,

disclosing, making available to any person or entity, or using any USF confidential and/or
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trade secret information that Yanez obtained while employed by USF, including without
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limitation USF’s customer identification, bid opportunities, fire alarm and other life safety
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system designs, security system designs, bidding information, drawing templates, policies,
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procedures, project reports, customer contracts, and customer as-built information;
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4.

Defendant Alpha, and all those acting in concert or participation with it, are

hereby enjoined from directly or indirectly violating or interfering with the confidentiality
obligations of Yanez’s agreements with USF;
5.

Directing Defendants Alpha to take all necessary steps to preserve documents,

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data, tangible things, and other materials relating to this action, including without limitation

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emails and paper and electronic documents, including any current or archived electronic logs,

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metadata, and directories;

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6.

Defendants Alpha, and all those acting in concert or participation with it, are

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hereby enjoined from altering, destroying, or disposing of any evidence or other materials, in

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any form, relating to this action and the issues raised herein, including, without limitation, all

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devices, electronic media, metadata, directories, cloud storage, and all copies of any and all
documents, media and/or other materials, containing, identifying, describing, reflecting or
referencing USF's confidential, proprietary, or trade secret information, and any and all
documents, data and information which was obtained by Yanez from, or by virtue of his

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STIPULATION AND ORDER
Page 3 of 4

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employment with, USF, including all current or archived media, emails, chats, texts,

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documents, electronic logs, metadata, storage and directories;

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7.

The Court concludes that no bond need by posted by USF.

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Dated: June 28, 2017

Dated: June 28, 2017

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Signed
/s/
Jeremy J. Schroeder
2202 Plaza Drive
Rocklin, CA 95765
T: 916-672-6558
F: 916-672-6602
Counsel for Defendant
ALPHA ALARM & AUDIO, INC.

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Signed
/s/
Omair M. Farooqui
12 South First Street, Suite 600
San Jose, CA 95113
T: 408-294-0404
F: 408-886-9463
Counsel for Plaintiff
UNIVERSAL SECURITY AND FIRE,
INC.

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IT IS SO ORDERED.
Dated: June 29, 2017

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Troy L. Nunley
United States District Judge

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STIPULATION AND ORDER
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