Contact us with your California corporate & securities law questions (949) 353-6347 or Contact us here

Court Concludes CUTSA Does Not Preempt Breach Of Fiduciary Duty Claim

The California Uniform Trade Secrets Act (CUTSA) provides various remedies for misappropriation of a trade secret (as defined).  The legislature, however, was "vexingly oblique" in prescribing the effect of CUTSA on common law claims, such as conversion, based on trade secret misappropriation.  Silvaco Data Systems v. Intel Corp., 184 Cal. App. 4th 210, 232 (2010) disapproved of on other grounds, Kwikset Corp. v. Superior Court, 51 Cal. 4th 310 (2011). Nonetheless, the Sixth District Court of Appeal in Silvaco divined a legislative intent to supersede other grounds of civil liability based on "statutory implication, context, legislative history, and general principles of statutory supersession".  

Recently, U.S. District Court Judge Cormac J. Carney ruled that CUTSA did not preempt a corporation's claims against a former officer and a competitor for breach of fiduciary duty and aiding and abetting a breach of fiduciary duty when those claims are not premised on the taking or use of confidential information.  Chromadex, Inc. v. Elysium Health, 2019 U.S. Dist. LEXIS 60732.  In refusing to dismiss the corporation's breach of fiduciary claims, Judge Carney found that the corporation had premised its claims that were broader and different than taking confidential information. 

 
Share on:

fiduciary duty

ANY QUESTIONS REGARDING CALIFORNIA CORPORATE AND SECURITIES LAW? CONTACT US DIRECTLY

We offer expert advice with the intricacies of California law.

Our years of experience and expertise allow us to help clients navigate the business laws in California.

CONTACT US

Get the latest news and analysis about California Corporate & Securities law. Subscribe to our newsletter today!

We respect your email privacy

ABOUT OUR AUTHOR

30172DBAB0084D3A8F39D7AF0A8E79BC.ashx Keith Paul Bishop
Partner at Allen Matkins
(949) 353-6328
 Contact me
Learn More About Keith

RECOGNITION

NationalLawReview

badge-author-large

nominee-badge

Get the latest news and analysis about California Corporate & Securities law. Subscribe to our newsletter today!

We respect your email privacy

CATEGORIES

see all

YOUTUBE

FACEBOOK