17-CIV-04883 ONE ORGANIC LLC vs. LULU LAU, et al.

ONE ORGANIC LLC MICHAEL INDRAJANA

LULU LAU MARK J. BLUER

DEMURRER

TENTATIVE RULING:

Cross-Defendants ONE ORGANIC, LLC; JERRY CHIU; and MICHAEL NGIN’s Demurrer to First Amended Cross-Complaint is SUSTAINED IN PART and OVERRULED IN PART, as follows:

· The demurrers to the First through Tenth causes of action are OVERRULED. The Court finds these causes of action sufficiently pled.

· The demurrer to the Eleventh cause of action for misappropriation of trade secrets is SUSTAINED WITH LEAVE TO AMEND. Civil Code § 3426.1(d) defines a “trade secret” as “information, including a formula, pattern, compilation, program, device, method, technique, or process, that: (1) derives independent economic value, actual or potential, from not being generally known to the public or to other persons who can obtain economic value from its disclosure or use; and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.” Here, the “trade secrets” at issue are the advertising designs allegedly paid for by Cross-Complainant WUHE HEALTH and retained by Cross-Defendants. As advertising designs, by their very nature, are not meant to be kept secret and derive no independent economic value from being kept from the public, this cause of action is flawed.

Cross-Complainant shall file an amended Cross-Complaint within 10 days of notice of entry of this Order.

Cross-Defendants’ Request for Judicial Notice is GRANTED as to Exhibits 1-4, but only insofar as the documents were filed with the Court or with the California Secretary of State, and not as to the truth of any matters asserted therein. Evid. Code § 452.