Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_05-cv-02273/USCOURTS-cand-3_05-cv-02273-2/pdf.json

Nature of Suit Code: 423
Nature of Suit: Bankruptcy Withdrawal 28 USC 157
Cause of Action: 28:0157 Motion for Withdrawal of Reference

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States District C

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For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

In re:

BETTA PRODUCTS, INC., a California

Corporation,

Debtor.

___________________________________/

BETTA PRODUCTS, INC., et al.,

Plaintiffs,

 v.

TRANSGLOBAL COMMUNICATIONS, et

al.,

Defendants.

 /

No. C 05-02273 CRB

Bankruptcy Case No. 03-10925 AJ

ORDER

This adversary proceeding was withdrawn from bankruptcy court. The debtor, Betta

Products, Inc. (“Betta”), alleges that defendants misappropriated Betta’s trade secrets. Now

pending before the Court are defendants’ motions to dismiss and to strike. After carefully

reviewing the papers filed by the parties, the Court concludes that oral argument is

unnecessary, see Local Rule 7-1(b), and rules as is set forth below.

1. Defendants’ motion to dismiss the misappropriation of trade secrets claims on

the grounds that plaintiff has not and cannot allege ownership of trade secrets is DENIED. 

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Paragraphs 15 and 16 of the complaint sufficiently allege ownership. Moreover, defendants

have not established that Betta is barred by judicial estoppel from asserting ownership of

trade secrets.

2. Defendants’ motion to dismiss Betta’s common law misappropriation of trade

secrets claim is GRANTED with prejudice. While Accuimage Diagnostics Corp. v.

Terarecon, Inc., 260 F.Supp.2d 941, 952-54 (N.D. Cal. 2003) is not binding precedent, as

erroneously asserted by defendants, the Court finds the reasoning of Accuimage and Digital

Envoy, Inc. v. Google, Inc., 370 F.Supp.2d 1025 (N.D. Cal. 2005) persuasive.

3. Defendants’ motion to dismiss Betta’s claim for intentional interference with

prospective economic advantage is GRANTED with leave to amend.

4. Defendants’ motion to dismiss Betta’s Seventh Cause of Action for conspiracy

is GRANTED with leave to amend. Betta concedes that conspiracy is not a separate cause of

action; rather, it asserts that it is an alternative basis for liability under the previously-pled

causes of action. Accordingly, Betta shall amend its causes of action to include the

alternative conspiracy allegation where appropriate.

5. Defendants’ motion to dismiss plaintiff McCurnin for lack of standing is

GRANTED as unopposed.

6. Defendants’ motion to strike is GRANTED as all parties agree that Betta may

only recover restitution. However, the Court is not now deciding how restitution is to be

measured.

7. Betta shall file its amended complaint, if it chooses to amend, within 20 days of

the filing of this Order.

IT IS SO ORDERED.

Dated: September 7, 2005

 

CHARLES R. BREYER

UNITED STATES DISTRICT JUDGE

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