Campos Obtains Terminating Sanctions, Case Dismissed
Victor Campos (Of Counsel-Los Angeles, CA) prevailed on behalf of our client, a national operator of bowling centers, in a case in which we have been involved since November 2021. While Mr. Campos handled the case for the past two years, Carole Buckner (Partner-San Diego, CA) and Andrew Sewell (Of Counsel-Los Angeles, CA) previously worked up the case, enabling this huge team win for the Client. Plaintiff fell in a client-owned bowling alley, breaking her right shoulder and left leg. She underwent surgery to repair both fractures. Years of discovery ensued, including expert discovery. In 2024, the team filed an MSJ, which the Court denied. Subsequently, they continued to aggressively defend the case, pushing for essential discovery from Plaintiff. They filed and won two motions to compel and were awarded sanctions. Plaintiff did not conform to the Court's orders, so they filed a Motion for Contempt and for Terminating Sanctions. The Court granted the Motion for Terminating Sanctions and dismissed the case with prejudice.
Victor M. Campos, Carole J. Buckner and Andrew Sewell
Cole Secures Jury Defense Verdict in High-Stakes Malpractice Trial
Kammann S. Cole (Partner-San Diego) secured a jury defense verdict in favor of an insured dentist in the Los Angeles Superior Court following a two-week trial. The dental malpractice case proceeded to trial after a codefendant settled shortly beforehand for a significant sum. The matter came down to a quintessential battle of the experts, with the plaintiff’s counsel seeking high six-figures as compensation. Despite the challenging posture of the case, Kammann successfully persuaded the jury to return a defense verdict, delivering an excellent result for the firm’s institutional client.
Kammann S. Cole
Yvars, Viergever & McCloskey Prevail for National Health Care Provider in Commercial Arbitration
Christopher Yvars (Partner, Denver, CO) Kimberly Viergever (Of Counsel-Denver, CO), and Michael McCloskey (Senior Counsel-San Diego, CA) secured a complete defense victory for a national health care client in a commercial arbitration where the claimant sought more than $50 million in damages. The dispute centered on long-term services and nondisclosure agreements involving an alleged proprietary software platform, which claimant developed to streamline and enhance health care outcomes management for large-scale providers. The claimant alleged breach of contract and theft of trade secrets, asserting that the firm’s client had improperly used and disclosed confidential processes, data integration methods, and reporting functionalities unique to the claimant’s product. After a multi-day evidentiary hearing featuring testimony from technical experts and company executives, as well as extensive written submissions, the AAA Arbitration, Denver, Colorado, issued a final award denying all claims and dismissing the case in its entirety.
Christopher D. Yvars, Kimberly Viergever and Michael P. McCloskey
Cole & Burlington Secure Summary Judgment for Big-Rig Client
Kammann Cole (Partner-San Diego, CA) and Katharine Burlington (Associate-San Diego, CA) secured summary judgment on behalf of a commercial trucking company resulting in full dismissal. Three minor successors in interest had asserted negligence claims and issued a policy-limits settlement demand following a motor vehicle accident involving the decedent and the client’s big rig. At the time of the collision, the decedent was under the influence, unlicensed, and had a prior felony conviction for unsafe vehicle operation. Kammann and Katharine successfully negotiated voluntary dismissals from two of the plaintiffs, while the third refused. They then moved for summary judgment in Riverside County Superior Court, which was granted in full, eliminating all claims against the client.
Kammann S. Cole and Katharine J. Burlington
Cole Secures Summary Judgment on Behalf of Construction Company in Negligence Case
Kammann S. Cole (Partner-San Diego, CA) secured summary judgment on behalf of a construction company in the San Diego Superior Court. The plaintiff sought damages for injuries resulting from a playground swing that was installed by the insured, alleging negligence for violating a statutory requirement forbidding the installation of the at-issue multiple occupancy swing. Kammann was able to get the case summarily dismissed by arguing the completed and accepted doctrine applied to the insured’s work on the playground.
Kammann S. Cole
Ready & McCloskey Prevail in Enforcement Action by California Attorney General’s Office
After securing a defense verdict in 2024 in a 16-day bench trial in San Mateo Superior Court's Complex Division, Marty Ready (Partner-San Diego, CA) and Michael McCloskey (Senior Counsel-San Diego, CA) convinced the presiding Judge to limit a statutory attorney fee award to $35,800 of the over $2 million requested by the California Attorney General (AG). The underlying case was an enforcement action by the California AG's office against our clients a nonprofit and one of its five directors alleging various breaches of fiduciary duties primarily arising from an alleged series of self-dealing transactions and diversion of charitable assets. The case was initiated as an investigative audit of the nonprofit, which ultimately led to the litigation. The case was contentious and heavily litigated by the parties for five years. At the conclusion of trial, the court only assessed $14,000 in fines and penalties against the nonprofit and two of its directors related to minor deficiencies in the its tax returns. Although this was an exceptional result, the real risk to our clients was a statutory attorney fee award that was mandatory in an enforcement action brought by the California AG's Charitable Trust Section. As expected, the California AG moved for an award of more than $2 million in attorney's fees and expert costs spanning the investigation and litigation. After extensive briefing and two days of oral arguments on the California AG's fee motion, the court awarded the AG $35,800 based on its lack of success at trial and representative of the amount of time related to obtaining a nominal amount at trial for errors on a nonprofit's tax returns. The California AG has appealed the judgment and is expected to appeal the fee award.
Marty B. Ready and Michael P. McCloskey
Crossing the “v.” Still Spells Victory!
Sean Monks (Partner-San Diego, CA), Richard Bortnick (Of Counsel-Philadelphia, PA), and Natalie Lakosil (Associate-San Diego, CA) represented a corporation diluted in violation of a Stock Purchase and Subscription Agreement in Arbitration. Though not usually on the plaintiff’s side of the “v.” the team got an outstanding result. Through its former CEO, our client enjoyed a long business relationship with the company in which he was a shareholder (the Respondent). Throughout the relationship, our client contributed to the Respondent’s ongoing business in the form of various short-term loans as needed, each of which were promptly repaid. This relationship stemmed from the original share ownership of our client in the Respondent. However, when the former CEO left, the Respondent embarked on a campaign to dilute our client’s percentage of ownership, which was protected in the Stock Purchase and Subscription Agreement. Unfortunately, under the leadership of the new CEO, the stock was reduced in value to fractions of a penny. Getting the shares “trued up” was going to provide no relief for our client. Through creative argument, Sean, Rick, and Natalie persuaded the arbitrator to rescind the contract to our client, leaving the contract intact for the other signatories. Including costs of the arbitration, our client was received nearly $700,000 in the form of an award.
Sean M. Monks, Richard J. Bortnick and Natalie F. Lakosil
Monks, McCloskey & Potiker Score Massive Win for 3D Printing Client
Sean Monks (Partner-San Diego, CA), Michael McCloskey (Senior Counsel-San Diego, CA), and Anne Potiker (Associate-San Diego, CA) prevailed in a recent Order on a Motion for Summary Judgment in a sticky and highly personal trade secret case in the 3D printing industry – a publicly traded $3 billion cap company against five individuals and their small startup. Also participating in the defense were outside co-counsel. Initially, there were seven causes of action. Four were jettisoned by virtue of 12(b)(6) litigation. What remained was a breach of contract claim and claims under DTSA and CUTSA. The plaintiff sought about $30 million in damages and attorneys’ fees.
In discerning their remaining claims, our team focused hard on pushing for proper identification of the trade secret and pigeon-holed the plaintiff into a definition of their 12 trade secrets supposedly misappropriated, which they refused to amend. Almost three years ago we got the magistrate judge to hold them to these disclosures and ROG responses, and he indicated their refusal to provide further detail would preclude them from amending and could be used against them in summary judgment. Fast forward to the present, and we have an Order finding it was more than past time for the plaintiff to “put up or shut up” at summary judgment. Having been stuck with their meagre disclosures, the judge latched onto the deficiencies and summarily dismissed all trade secret claims.
The breach of contract claim required a bit of creative analysis. Our clients were supposedly precluded from using their skills in future work that could overlap in the 3D printing industry. We assessed the provision at issue and determined it violated section 16600 of the CCP. In California, “every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” Cal. Bus. & Prof. Code § 16600(a). In fact, we filed an amended counterclaim alleging this issue, among other violations by the plaintiff related to our clients’ trade secrets. The U.S. District Court for the Southern District of California specifically found, “The defense has the better argument.” Heading into summary judgment, the plaintiffs were expecting to recoup up to $40 million in a windfall through damages and fees, or at the very least, grind their competition into the dust. Instead, their entire case is gone and they are facing the pointy end of the spear of our own counterclaims and potential motion for fees related to bad faith.
Sean M. Monks, Michael P. McCloskey and Anne Potiker
Ready and Kustic Secure Defense Verdict in Case of Alleged Fraudulent Inducement
Marty Ready (Partner-San Diego | San Francisco, CA) and Sarena Kustic (Partner-San Diego, CA) secured a defense verdict in a two-week jury trial in San Diego Superior Court. The case involved a disgruntled shareholder seeking recovery of his $1 million investment lost due to a failed startup. The plaintiff alleged fraud, breach of fiduciary duty, and rescission against our clients, the former chairman of the board and the failed startup. Although the claims in this trial were based on fraud in the inducement, the plaintiff sought to insert derivative issues (currently the subject of a derivative lawsuit pending in Delaware Chancery Court) in an effort to confuse the jury in the hopes of obtaining a favorable verdict. Fortunately, Marty and Sarena and their team were able to keep the record clean, and the jury focused on only the issues in this case. The jury deliberated for less than three hours and returned a verdict in favor of our clients, never getting past the first question for each cause of action. After the verdict was rendered, the jurors advised counsel that our cross-examination of plaintiff’s witnesses was very effective in demonstrating their lack of credibility and our trial presentation was highly persuasive and professional.
Marty B. Ready and Sarena Kustic