Gatan, Inc. v. Nion Company

Filing 33

ORDER granting motion to dismiss. Signed by Judge Hamilton on 11/18/2015. (pjhlc2, COURT STAFF) (Filed on 11/18/2015)

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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GATAN, INC.,

v.

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ORDER GRANTING MOTION TO
DISMISS

NION COMPANY,
Defendant.

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United States District Court
Northern District of California

Case No. 15-cv-1862-PJH

Plaintiff,

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Defendant’s motion to dismiss came on for hearing before this court on November

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18, 2015. Plaintiff Gatan, Inc. (“plaintiff”) appeared through its counsel, William Goines.

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Defendant Nion Company (“defendant”) appeared through its counsel, Alfred Pfeiffer.

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Having read the papers filed in conjunction with the motion and carefully considered the

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arguments and the relevant legal authority, and good cause appearing, the court hereby

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GRANTS defendant’s motion, with leave to amend, as stated at the hearing and as

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follows.

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As to the first cause of action, plaintiff concedes that the non-competition provision

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of paragraph 16 is unenforceable unless one of the exceptions to California Business &

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Professions Code section 16600 applies. Plaintiff further asserts that the only applicable

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exception is for “trade secrets.” The second amended complaint (“SAC”) must plead

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facts supporting the application of a “trade secrets” exception.

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As to the second cause of action, the SAC must clearly identify all alleged conduct
giving rise to the alleged breach of the implied duty.
And as to the third cause of action, the SAC must clearly identify the nature of the

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dis
scovery (or discoveries made by defendant , and must allege that a license w both
s)
t
was

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req
quested and refused.
d

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Plaintif shall have until Dece
ff
e
ember 16, 2015 to file a second amended c
e
complaint in
n

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acc
cordance with this ord and def
w
der,
fendant sha have 21 days there
all
eafter to ans
swer or

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oth
herwise res
spond to the complaint No new c
e
t.
claims or pa
arties may be added w
without

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lea of court or the consent of all parties. If d
ave
t
p
defendant f
files anothe motion to dismiss in
er
o

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res
sponse to th SAC, it should be noticed for h
he
s
n
hearing as required by the Local Rules, but
y

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the court is un
e
nlikely to ho a further hearing.
old

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IT IS SO ORDER
S
RED.

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Da
ated: November 18, 20
015

United States District Court
Northern District of California

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__
__________
__________
__________
_______
PH
HYLLIS J. H
HAMILTON
Un
nited States District Ju
s
udge

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