Procedural Posture

Procedural Posture

Defendants, former employee and the new employer, sought review of a judgment of the Superior Court of Los Angeles County in plaintiff corporation’s suit against defendants for unfair solicitation of customers and unfair competition.

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Overview

Plaintiff corporation sued defendants, a former employee and the new employer, for unfair solicitation of customers and unfair competition. After the trial court found that defendants conspired to obtain plaintiff’s customer list and ruled for plaintiff, defendants sought review. On appeal, the court said that a very substantial part of the business produced by defendant former employee came from customers regularly served by plaintiff. The court affirmed judgment because the plaintiff showed that it had a fixed volume of business where defendant former employee worked and that plaintiff had enjoyed the business of its customers for years. It was reasonable to assume that plaintiff would have continued to enjoy that patronage but for the wrongful diversion of its customers to defendants. The court said that the record disclosed no abuse of discretion in award of exemplary damages. All of the information in the customer lists was secret and confidential.

Outcome

The court affirmed the judgment because plaintiff would have continued to enjoy the patronage of its customers but for the wrongful diversion of its customers to defendants.

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