Insights
Before the Supreme Court of the United States
June 7, 2021
Sean Monks is a veteran trial lawyer recognized for success in all stages of litigation. He handles complex commercial matters such as state and federal derivative actions, misappropriation of trade secrets, unfair competition, breach of contract, breach of fiduciary duty, and related business torts. Sean also defends corporations and their officers and directors before the SEC and Department of Justice, and in shareholder litigation. He represents clients in trade secret and non-compete litigation, consumer class actions, and other disputes among business partners.
To avoid or mitigate litigation risks, Sean advises clients on best business practices and corporate compliance matters. Among his clients are government contractors, biotech and pharmaceutical companies, and manufacturing companies.
Although he has extensive trial experience, Sean has not limited his work solely to trial-level litigation. An adept appellate attorney with numerous published opinions under his belt, Sean has filed more than 25 appellate briefs and engages in oral argument.
Sean continues to serve in the Marine Corps Reserves. In law school, Sean was National Champion in the William Daniel Mock Trial Competition, the ABA Ethics Mock Trial Competition, and Regional Champion in the ABA Arbitration Competition.
Commercial Litigation
Equipped with superior courtroom results, Sean demonstrates equal success in meeting client objectives through arbitration and other types of alternative dispute resolution. Sean strives to accelerate resolution through procedural dismissals, substantive dismissals, successful tenders and negotiated settlements. He does not hesitate to try high-exposure cases in court, and handles smaller matters with rigor and discipline.
Defending businesses and corporations in contract, warranty and liability actions, Sean also provides clients with innovative and timely strategic counsel to facilitate better-informed decisions, resolve complex legal challenges and achieve specific business goals.
Securities Litigation
Sean regularly defends corporations and their officers and directors in disputes involving the alleged violation of state and federal securities laws. He represents his clients in SEC investigations and enforcement actions as well as in shareholder class-action litigation, derivative actions, mergers and acquisition litigation, and proxy contests. Sean also represents investment advisers and broker-dealers in industry and customer arbitrations before the Financial Industry Regulatory Authority.
Trade Secret and Non-compete Litigation
Preeminent among the business cases Sean has litigated are those involving trade secrets and non-compete claims. He contests cases alleging violations of the Uniform Trade Secrets Act and breach of fiduciary duty, business interference torts, and breach of non-competition agreements.
Sean Monks is a veteran trial lawyer recognized for success in all stages of litigation. He handles complex commercial matters such as state and federal derivative actions, misappropriation of trade secrets, unfair competition, breach of contract, breach of fiduciary duty, and related business torts. Sean also defends corporations and their officers and directors before the SEC and Department of Justice, and in shareholder litigation. He represents clients in trade secret and non-compete litigation, consumer class actions, and other disputes among business partners.
To avoid or mitigate litigation risks, Sean advises clients on best business practices and corporate compliance matters. Among his clients are government contractors, biotech and pharmaceutical companies, and manufacturing companies.
Although he has extensive trial experience, Sean has not limited his work solely to trial-level litigation. An adept appellate attorney with numerous published opinions under his belt, Sean has filed more than 25 appellate briefs and engages in oral argument.
Sean continues to serve in the Marine Corps Reserves. In law school, Sean was National Champion in the William Daniel Mock Trial Competition, the ABA Ethics Mock Trial Competition, and Regional Champion in the ABA Arbitration Competition.
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
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
Sean Monks (Of Counsel-San Diego), Drew Bruff (Associate-San Diego) and Michael McCloskey (Partner-San Diego) have represented three brothers (brothers) for several years in a contentious dispute against their sister. The brothers originally were represented by counsel who filed an arbitration against the sister arising out of a dispute involving commercial real estate. The sister filed a counter demand arising out of her perceived interest in a series of biotech entities spearheaded by one brother. In the first phase of that arbitration, the brothers’ claims against their sister were ruled time-barred by way of statute of limitations, and they dismissed their original counsel and hired Sean and Drew to defend them against the sister’s counter demand. The sister’s counsel engaged in substantial overreach by way of 14 causes of action alleging a variety of contract and tort claims, including defamation and RICO, seeking more than $45 million and attorneys’ fees for the sister’s claimed equity in one of the brother’s businesses and other damages. Those claims were the subject of the next arbitration phase resulting in five weeks of testimony with 23 witnesses. Sean, Drew and Mike were fortunate to have exceptional paralegal support provided daily by San Diego paralegal Kirstie Castillo, and the product of their collective effort was a complete defense victory: the 14 claims resulted in a complete defense verdict and zero dollars in recovery. The victory was the result of years of preparation handicapped by the poor presentation and worse outcome due to the performance of the brothers’ first counsel.
Sean M. Monks and Michael P. McCloskey