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Leadfactors, LLC v. Cisco Sys., Inc.

COURT OF APPEAL OF THE STATE OF CALIFORNIA SIXTH APPELLATE DISTRICT
Dec 14, 2018
H043904 (Cal. Ct. App. Dec. 14, 2018)

Opinion

H043904

12-14-2018

LEADFACTORS, LLC, Plaintiff and Respondent, v. CISCO SYSTEMS, INC., Defendant and Appellant.


NOT TO BE PUBLISHED IN OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115. (Santa Clara County Super. Ct. No. 1-13-CV-247926)

Cisco Systems, Inc. (Cisco) seeks review of a postjudgment order denying its request for attorney fees after it successfully moved for summary judgment on a cause of action for misappropriation of trade secrets brought by plaintiff Leadfactors, LLC. (Leadfactors). This appeal has been considered with Leadfactors, LLC v. Cisco Systems, Inc. (H043081), the appeal brought by Leadfactors from the underlying judgment in Cisco's favor.

In the court below Cisco demurred to the second cause of action for breach of contract asserted by Leadfactors in its third amended complaint. The trial court sustained the demurrer without leave to amend. Cisco then moved for summary judgment, contending that the misappropriation claim was barred by the statute of limitations prescribed in Civil Code section 3426.6. The trial court agreed and granted the motion.

All further statutory references are to the Civil Code.

While the appeal in H043081 was pending, Cisco moved for attorney fees under section 3426.4, based on its assertion that Leadfactors had pursued its misappropriation claim in bad faith, knowing that it was time-barred. The court denied that motion, and Cisco appeals, asserting abuse of discretion.

In the underlying case, H043081, this court has determined that summary judgment was improperly granted. In light of that conclusion, Cisco is not the prevailing party on the misappropriation cause of action; hence, attorney fees are not available under the cited statute, section 3426.4. Because there is no basis for the recovery of attorney fees for Cisco's defense of the misappropriation claim, we need not address its contention that the lower court abused its discretion by denying the motion for attorney fees. The appeal is moot. (Cf. Venturi & Co. LLC v. Pacific Malibu Development Corp. (2009) 172 Cal.App.4th 1417, 1424 [cross-appeal from denial of attorney fees moot because summary judgment improperly granted]; Irwin v. City of Hemet (1994) 22 Cal.App.4th 507, 527 [order denying motion for attorney fees moot where summary judgment in favor of defendants erroneously granted].)

In an action for misappropriation of trade secrets, if the claim is made in bad faith, section 3426.4 provides for "reasonable attorney's fees and costs to the prevailing party." --------

Disposition

The appeal from the postjudgment order of June 9, 2016 is dismissed as moot.

/s/_________

ELIA, ACTING P. J. WE CONCUR: /s/_________
MIHARA, J. /s/_________
DANNER, J.


Summaries of

Leadfactors, LLC v. Cisco Sys., Inc.

COURT OF APPEAL OF THE STATE OF CALIFORNIA SIXTH APPELLATE DISTRICT
Dec 14, 2018
H043904 (Cal. Ct. App. Dec. 14, 2018)
Case details for

Leadfactors, LLC v. Cisco Sys., Inc.

Case Details

Full title:LEADFACTORS, LLC, Plaintiff and Respondent, v. CISCO SYSTEMS, INC.…

Court:COURT OF APPEAL OF THE STATE OF CALIFORNIA SIXTH APPELLATE DISTRICT

Date published: Dec 14, 2018

Citations

H043904 (Cal. Ct. App. Dec. 14, 2018)