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No Level Playing Field for California Employers
By Steven M. Chanley
A very recent California Court of appeal case hammered home the point that the state’s wage and hour laws, and how they are applied, are intentionally skewed in favor of employees—so much so that even provisions of the California Code of Civil Procedure are bent to achieve that end.
In Chavez v. Cal. Collision, LLC, No. A167658 (Cal. Ct. App. Dec. 10, 2024), California’s First Appellate District overturned the trial court’s award of $54,000 in court costs to an employer defendant. The Court did so even though the award of costs would generally have been appropriate under section 998 of the Code of Civil Procedure. Court costs do not include attorneys’ fees, but do include such expenses as filing fees, transcript costs, service of process costs, and expert witness fess.
Section 998 provides that a “plaintiff shall not recover his or her post-offer costs and shall pay the defendant's costs from the time of the offer" if two requirements are met. First, the defendant must make an offer of compromise that the plaintiff does not accept. Second, the plaintiff also does not...
moreEmployees and Trade Secrets
By Steven M. Chanley
While many trade secret disputes can often be nipped in the bud with a stern and timely cease-and-desist letter coupled with diligent monitoring, a very recent federal district court case in Massachusetts illustrates the reality that companies can and will, nonetheless, misappropriate a competitor's trade secrets when they believe the information may be leveraged to generate enough revenue to warrant the legal risk.
Insulet Corp. v. EOFlow Co. Ltd. et al., Case No. 1:23-cv-11780 (D. Mass.) arose out of the departure of several employees from biotech company Insulet Corporation to joint South Korean-owned competitor, EOFlow Company. Several years later, Insulet was forced to protect its trade secret rights by suing EOFlow in federal court for misappropriating IP relating to Insulet's wearable insulin patch technology of which the former employees were aware.
The jury awarded Insulet $452 million in damages against EOFlow and its CEO, $282 million of which were punitive damages. It is believed to be the largest award in a trade secrets case in...
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