Superior Consulting Services, Inc. v. Steeves-Kiss
Filing
43
ORDER by Judge Edward M. Chen Granting 18 Defendant's Motion to Dismiss and 24 Motion for Sanctions. (emcsec, COURT STAFF) (Filed on 3/8/2018)
1
2
3
4
UNITED STATES DISTRICT COURT
5
NORTHERN DISTRICT OF CALIFORNIA
6
7
SUPERIOR CONSULTING SERVICES,
8
Case No. 17-cv-06059-EMC
INC.,
Plaintiff,
9
10
v.
ORDER GRANTING DEFENDANT’S
MOTION TO DISMISS AND MOTION
FOR SANCTIONS
Docket Nos. 18, 24
12
For the Northern District of California
United States District Court
11
JENNIFER L STEEVES-KISS,
Defendant.
13
14
The Court ruled from the bench on March 1, 2018, granting Ms. Steeves-Kiss’ motion to
15
dismiss and her motion for sanctions. See Docket Nos. 18, 24. This order summarizes the Court’s
16
reasoning, which was stated on the record.
17
The motion to dismiss is granted in light of the 2005 confidentiality agreement’s expiration
18
clause that freed Procter & Gamble from any obligations regarding the disclosure and use of the
19
purportedly confidential information. Superior Consulting identified no cognizable property right
20
that survives the expiration clause and no act in contravention of property law. See Silvaco Data
21
Sys. v. Intel Corp., 184 Cal. App. 4th 210, 236-40 (2010), as modified on denial of reh’g (May 27,
22
2010), disapproved of on other grounds, Kwikset Corp. v. Superior Court, 51 Cal. 4th 310 (2011).
23
The disputed information appears to have been plead as a trade secret, but any trade secret
24
protection was eviscerated by the expiration provision. Plaintiff failed to identify or establish any
25
other basis for a property right and none which survives the unlimited disclosure permitted under
26
the 2005 agreement.
27
The Court takes judicial notice of the confidentiality agreement in this motion to dismiss
28
because its authenticity is not contested and it is referenced in the First Amended Complaint and
1
lays the predicate for the other allegations, particularly that of the disputed information’s
2
confidentiality. See Lee v. City of Los Angeles, 240 F.3d 668, 688 (9th Cir. 2001). Even if the
3
Court did not take the confidentiality agreement into account, the California Uniform Trade
4
Secrets Act preempts Plaintiff’s claims. See K.C. Multimedia, Inc. v. Bank of Am. Tech. &
5
Operations, Inc., 171 Cal. App. 4th 939, 957-58 (2009); Mattel, Inc. v. MGA Entm’t, Inc. v.
6
Consol. Actions, 782 F. Supp. 2d 911, 987 (C.D. Cal. 2010).
7
The motion for sanctions is granted under Rule 11. Sanctions are warranted in part
8
because the First Amended Complaint misleadingly plead the disputed information was
9
confidential. The FAC and ¶ 32 in particular should have contained the critical fact of the
no colorable basis to support a property right and therefore nothing to support the legal claims.
12
For the Northern District of California
expiration provision’s existence and terms permitting disclosure. Furthermore, the FAC contained
11
United States District Court
10
Finally and secondarily, the timing of the complaint’s filing and service – on the eve of Ms.
13
Steeves-Kiss’ deposition in the Florida litigation – suggests that Superior Consulting filed suit at
14
least in part to intimidate Ms. Steeves-Kiss. This is particularly so given that Plaintiff indicated at
15
the motions hearing that it had discovered the factual basis for their complaint four (4) weeks prior
16
to filing; yet it took Plaintiff four (4) weeks to file a threadbare complaint. Attorney’s fees shall
17
be granted to Ms. Steeves-Kiss. The minute entry details the timeline regarding the fee request.
18
See Docket No. 40.
19
This order disposes of Docket Nos. 18 and 24.
20
21
IT IS SO ORDERED.
22
23
24
25
Dated: March 8, 2017
______________________________________
EDWARD M. CHEN
United States District Judge
26
27
28
2
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?