Preview
ELECTRONICALLY FILED
Superior Court of California
County of Santa Barbara
Shayna Balch Santiago (SBN 304802)
E-Mail: ssantiago@fisherphillips.com
Darrel E. Parker, Executive Officer
FISHER & PHILLIPS LLP 9/22/2021 1:28 PM
3200 N. Central Avenue, Suite 1550 By: Narzralli Baksh, Deputy
Phoenix, Arizona 85012-2487
Telephone: (602) 281-3400
Facsimile: (602) 281-3401
Kathryn M. Evans (SBN 323190)
E-Mail: kmevans@fisherphillips.com
FISHER & PHILLIPS LLP
4747 Executive Drive, Suite 1000
San Diego, California 92121
Telephone: (858) 597-9600
Facsimile: (858) 597-9601
Attorneys for Defendants
UCOMMG, LLC; Unified Communications Group, Inc.;
10 Kenneth W. Newbatt; Bianca Newbatt; Mitchell C.
Lipkin; Michael J. Bellas; Jimmie Garrett Baker, Jr.;
11 WesTele Utility Solutions, LLC; and Cynthia Baker
12 SUPERIOR COURT OF THE STATE OF CALIFORNIA
13 FOR THE COUNTY OF SANTA BARBARA - ANACAPA DIVISION
14
15 BUTLER AMERICA, LLC, a Delaware CASE NO.: 20CV03877
limited liability company, [Unlimited Jurisdiction]
16
Plaintiff, Assigned for all purposes to the
17 Honorable Donna D. Geck, Dept. 4
Vv.
18 DECLARATION OF KATHRYN M. EVANS
UCOMMG, LLC, a Nevada limited RE MATERIAL PLEADINGS PURSUANT
19 liability company; UNIFIED TO LR 1308
COMMUNICATIONS GROUP, INC., a
20 dissolved Washington corporation;
KENNETH W. NEWBATT, an
21 individual; BIANCA NEWBATT, an Complaint Filed: November 20, 2020
individual; MITCHELL C. LIPKIN, an Removal Filed: January 4, 2021
22 individual; MICHAEL J. BELLAS, an FAC Filed: April 16, 2021
individual; JIMMIE GARRETT BAKER. Remanded to State Court: August 3, 2021
23 JR., an individual; WESTELE UTILITY Trial Date: Not Set
SOLUTIONS, LLC, a California limited
24 liability company; and DOES | through
50, inclusive,
25
Defendants.
26
27
28
DEC OF KATHRYN M. EVANS RE MATERIAL PLEADINGS PURSUANT TO LR 1308
FP 41488033.1
DECLARATION OF KATHYRN M. EVANS
I, Kathryn M. Evans, hereby declare and state as follows:
1 I am an attorney at law duly licensed to practice before all courts in the State of
California. I am an associate with Fisher & Phillips LLP, counsel of record for Defendants
UCOMMG, LLC, Unified Communications Group, Inc., Kenneth W. Newbatt, Bianca Newbatt,
Mitchell C. Lipkin, Michael J. Bellas, Jimmie Garrett Baker, Jr., WesTele Utility Solutions, LLC,
and Cynthia Baker (“Defendants”). Based on my personal knowledge, I assert the facts set forth
herein and, if called as a witness, I could and would competently testify thereto.
2 Defendants removed this action to the United States District Court - Central
10 District of California on January 4, 2021. Pursuant to Local Rule 1308, this declaration describes
11 the material pleadings that Defendants filed in the federal action and the pertinent orders or
12 rulings entered in the federal action.
13 3 On March 26, 2021, Defendants UCOMMG, LLC, Unified Communications
14 Group, Inc., Kenneth Newbatt, Bianca Newbatt, Mitchell Lipkin, Michael Bellas, and WesTele
15 Utlity Solutions, LLC filed a Motion to Dismiss Pursuant to Federal Rules of Civil procedure
16 12(b)(2) and 12(b)(6). Attached hereto as Exhibit A are conformed copies of the notice,
17 memorandum of points and authorities, proposed order, and supporting declarations in support
18 of the Motion to Dismiss.
19 4. On March 26, 2021, Defendant Jimmie Garrett Baker, Jr. filed a Motion to
20 Compel Arbitration. Attached hereto as Exhibit B are conformed copies of the notice,
21 memorandum of points and authorities, proposed order, and supporting declaration in support of
22 the Motion to Compel Arbitration.
23 5 On April 12, 2021, Defendant Baker filed a reply brief in support of his Motion
24 to Compel Arbitration. Attached hereto as Exhibit C is a conformed copy of the reply brief in
25 support of the Motion to Compel Arbitration.
26 6. On April 16, 2021, Plaintiff filed a First Amended Complaint. On April 19, 2021,
27 the district court denied Defendants’ Motion to Dismiss as moot. A true and correct copy of the
28 district court’s order is attached hereto as Exhibit D.
2
DEC OF KATHRYN M. EVANS RE MATERIAL PLEADINGS PURSUANT TO LR 1308
FP 41488033.1
7
On April 30, 2021, Defendants filed a Motion to Dismiss Plaintiff's First
Amended Complaint Pursuant to Federal Rules of Civil Procedure 12(b)(2) and 12(b)(6).
Attached hereto as Exhibit E are conformed copies of the notice, memorandum of points and
authorities, proposed order, and supporting declarations in support of the Motion to Dismiss
Plaintiff's First Amended Complaint.
8 On May 24, 2021, Defendants filed a reply brief in support of their Motion to
Dismiss Plaintiff’s First Amended Complaint. Attached hereto as Exhibit F is a conformed copy
of the reply brief in support of the Motion to Dismiss Plaintiffs First Amended Complaint.
9 On August 3, 2021, the district court remanded the action to state court and denied
10 the Motion to Compel Arbitration and Motion to Dismiss Plaintiffs First Amended Complaint
11 at moot. A true and correct copy of the district court’s order is attached hereto as Exhibit G.
12 10. I declare under penalty of perjury, under the laws of the State of California, that
13 the foregoing is true and correct. Executed on September 20, 2021, at San Diego, California.
14
15
DATE: September 20, 2021 FISHER & PHILLIPS LLP
(
16
17
18 By:
Wy
ayna Balclf Saftiago
19 thryn M. Hvayis
4 orneys for efendants
20 UCOMMG, LLC; Unified Communications Group,
Inc.; Kenneth W. Newbatt; Bianca Newbatt; Mitchell
21 C. Lipkin; Michael J. Bellas; Jimmie Garrett Baker,
Jr.; WesTele Utility Solutions, LLC; and Cynthia
22 Baker
23
24
25
26
27
28
3
DEC OF KATHRYN M. EVANS RE MATERIAL PLEADINGS PURSUANT TO LR 1308
FP 41488033.1
EXHIBIT A
Case 2121-cv-00041-ODW-AFM Document 11 Filed 03/26/21 Page 1 of 3 Page ID #:323
Shayna H. Balch (SBN 304802
-Mail: sbalch@fishe rphillips.com
FISHER & PHILLIPS L
3200 N. Central Avenue, Suite 1550
Phoenix, Arizona 85012-2487
Facsimile: (
Telephone: 602) 281-3400
602 281-3401
Kathryn M. Evans (SBN 323190
E-Mail kmevans fishe’ phil ips.com
FISHER & PHILLIPS LL
4747 Executive Drive, Suite 1000
San Diego, California 92121
Facsimile: (
Telephone: 858 597-9600
858 597-9601
Attorneys for Defendants
UCOMMG, LLC; Unified Communications
10 Group, Inc.; Kenneth W. Newbatt; Bianca
Newbatt; Mitchell C. Lipkin; Michael J. Bellas;
11 Jimmie arrett Baker, Jr.; and WesTele Utility
Solutions, LLC
12
13 UNITED STATES DISTRICT COURT
14 CENTRAL DISTRICT OF CALIFORNIA — WESTERN DIVISION
15
16 BUTLER AMERICA, LLC, a Case No: 2:21-cv-00041-ODW (AFMx)
Delaware limited liability company,
17 [Removed from Santa Barbara Superior
Plaintiff, Court, Case No. 20CV03877]
18
Vv. DEFENDANTS’ NOTICE OF MOTION
19 AND MOTION TO DISMISS
UCOMMG, LLC, a Nevada limited PURSUANT TO FRCP 12(B)(2) AND
20 liability company; UNIFIED 12(B)(6)
COMMUNICATIONS GROUP,
21
22
INC., a dissolved Washington
oration, KENNETH
NEWBATT, an individual;
W. P Fi iled concurrently with Memorandum of
oints and Authorities; Declarations of
Michael Bellas, Mitchell Lipkin, Bianca
BIANCA NEWBATT, an Newbatt, Kenneth Newbatt, and Shayna H.
ns
23 individual; MITCHELL C. LIPKIN, Balch; and [Proposed] Order Thereof]
an individual; MICHAEL J.
24 BELLAS, an individual; JIMMIE Date: ril 26, 2021
GARRETT BAKER, JR., an Time: 0 p.m.
25 individual; WESTELE UTILITY Courtroom:
SOLUTIONS, LLC, a California Judge: Hon. Otis D. Wright, II
26 limited liability compan
DOES | through 50, inclusive, State Complaint Filed: November 20, 2020
27 Removal Filed: January 4, 2021
Defendants. Trial Date: Not Set
28
Case No.: 2:21-cv-00041-ODW (AFMx)
DEFS' NTC OF MTN AND MTD
FP 40155447.1
Case 2121-cv-00041-ODW-AFM Document 11 Filed 03/26/21 Page 2o0f3 Page ID #:324
TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD
HEREIN:
NOTICE IS HEREBY GIVEN that on April 26, 2021 at 1:30 p.m., or as
soon thereafter as the matter may be heard, before Hon. Otis D. Wright, II, in
Courtroom 5D, of the above-entitled Court, located at First Street Courthouse, 350
West 1“ Street, Los Angeles, California 90012, Defendants UCOMMG, LLC,
Unified Communications Group, Inc., Kenneth W. Newbatt, Bianca Newbatt,
Mitchell C. Lipkin, Michael J. Bellas, and WesTele Utility Solutions, LLC
(hereinafter “Defendants”) will move this Court for: 1) an order dismissing
10 Defendants UCOMMG, LLC, Unified Communications Group, Inc., Kenneth
11 Newbatt, Bianca Newbatt, Mitchell Lipkin, and Michael Bellas from this action in
12 its entirety pursuant to Fed. Rule of Civ. Proc. 12(b)(2) for lack of personal
13 jurisdiction; 2) to dismiss all claims asserted against Defendants in the Complaint
14 filed by Plaintiff Butler America, LLC for failure to state a claim pursuant to Fed.
15 Rule of Civ. Proc. 12(b)(6); and 3) to dismiss Defendant WesTele Utility Solutions,
16 LLC from this action as a fraudulently joined “sham” defendant.
17 This motion is based on this notice, the Memorandum of Points and
18 Authorities attached hereto, the Declarations of Shayna H. Balch, Kenneth
19 Newbatt, Bianca Newbatt, Mitchell Lipkin, and Michael Bellas, all papers
20 previously filed in this matter, and on such other and further evidence which may
21 be presented at the time of the hearing.
22 This motion is made following the conference of counsel pursuant to L.R. 7-
23 3 which took place on January 13, 2021.
24 Dated: March 26, 2021 Respectfully submitted,
25 FISHER & PHILLIPS LLP
26 By /s/ Kathryn M. Evans
Shayna H. Balch
27 Kathryn M. Evans
28 Attorneys for Defendants
1 Case No.: 2:21-cv-00041-ODW (AFMx)
DEFS' NTC OF MTN AND MTD
FP 40155447.1
Case 2121-cv-00041-ODW-AFM Document 11 Filed 03/26/21 Page 30f3 Page ID #:325
CERTIFICATE OF SERVICE
I, the undersigne d. am em)
California. I am over the age 0 Page
d in the County of Sacramento, State of
and not a party to the within action; am
7 e
emplo; ed with the law offices of Fisher & Philli s LEP and mM Wy, business address
is 474 Executive Drive, Suite 1000, San Diego, alifornia 92
On March 26, 2021 I served the foregoin document entitled
DEFENDANTS’ NOTICE OF MOTION AND OTION TO DISMISS
PURSUANT TO FRCP 12(B)(2) AND 12(B)(6) on all the appearing and/or
interested parties in this action as follows:
{ 25)
Paul P. Young Tel: (6: 2 744-1838
Joseph Chora Fax: 6 744-3167
Armen Manasserian Email: paul@chorayoungllp.com;
‘
Cameron H. Totten joseph@chorayoungllp.com;
CHORA YOUNG LLP armen@chorayoungllp.com;
10 650 Sierra Madre Villa Ave, Suite 304 ctotten@ctottenlaw.com;
Pasadena, CA 91107
Attorneys for Plain
Hf
11
Butler America, LL
12
[by ELECTRONIC SUBMISSION] - I served the above listed
13 document(s) described via the United States District Court’s Electronic
Filing Program on the designated recipients via electronic transmission
14 through the CM/ECF system on the Court’s website. The Court’s CM/ECF
15
stem will enerate a otice of Electronic Filing (NEF) to the fili nN
the assigned judge, and an
constitute service of the
registered users in the case. The N
locument(s). Registration as a CM/ECF user
arty,
will EF
16 constitutes consent to electronic service through the court’s transmission
facilities.
17
18 I declare that | am employed in the office of a member of the bar of this
Court at whose direction the service was made.
19
Executed March 26, 2021 at San Diego, California.
20
Gwen Nuttall By:
21 Print Name ignature
22
23
24
25
26
27
28
1
CERTIFICATE OF SERVICE
FP 40155447.1
Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 1 of 34 Page ID #:326
Shayna H. Balch (SBN 304802
-Mail: sbalch@fishe rphillips.com
FISHER & PHILLIPS L
3200 N. Central Avenue, Suite 1550
Phoenix, Arizona 85012-2487
Facsimile: (
Telephone: 602) 281-3400
602 281-3401
Kathryn M. Evans (SBN 323190
E-Mail kmevans fishe’ phil ips.com
FISHER & PHILLIPS LL
4747 Executive Drive, Suite 1000
San Diego, California 92121
Facsimile: (
Telephone: 858 597-9600
858 597-9601
Attorneys for Defendants
UCOMMG, LLC; Unified Communications
10 Group, Inc.; Kenneth W. Newbatt; Bianca
Newbatt; Mitchell C. Lipkin; Michael J. Bellas;
11 Jimmie arrett Baker, Jr.; and WesTele Utility
Solutions, LLC
12
13 UNITED STATES DISTRICT COURT
14 CENTRAL DISTRICT OF CALIFORNIA — WESTERN DIVISION
15
16 BUTLER AMERICA, LLC, a Case No: 2:21-cv-00041-ODW (AFMx)
Delaware limited liability company,
17 [Removed from Santa Barbara Superior
Plaintiff, Court, Case No. 20CV03877]
18
Vv. MEMORANDUM OF POINTS AND
19 AUTHORITIES IN SUPPORT OF
UCOMMG, LLC, a Nevada limited DEFENDANTS’ MOTION TO
20 liability company; UNIFIED DISMISS PURSUANT TO FRCP
COMMUNICATIONS GROUP, 12(B)(2) AND 12(B)(6)
21 INC., a dissolved Washington
oration, KENNETH W. Filed concurrently with Notice of Motion;
22 NEWBATT, an individual; eclarations of. ichael Bellas, itchell
BIANCA NEWBATT, an Lipkin, Bianca Newbatt, Kenneth Newbatt,
23 individual; MITCHELL C. LIPKIN, and Shayna H. Balch; and [Proposed]
an individual; MICHAEL J. Order Thereof]
24 BELLAS, an individual; JIMMIE
GARRETT BAKER, JR., an Date: April 26, 2021
25 individual; WESTELE UTILITY Time: :30 p.m.
SOLUTIONS, LLC, a California Courtroom: 5D
26 limited liability compan Judge: Hon. Otis D. Wright, II
DOES | through 50, inclusive,
27 State Complaint Filed: November 20, 2020
Defendants. Removal Filed: January 4, 2021
28 Trial Date: Not Set
Case No.: 2:21-cv-00041-ODW (AFMx)
MPA ISO DEFS' MTD
FP 40155792.2
Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 2 of 34 Page ID #:327
TABLE OF CONTENTS
INTRODUCTION
II STATEMENT OF RELEVANT ALLEGED FACTS..
A The Parties
B The Nonresident Defendants’ Contacts with California
1 UCOMMG Has Insufficient Contacts with the State of
California
2 Unified Has Insufficient Contacts with the State of
California
3 Kenneth Newbatt Has Insufficient Contacts with the
State of California.
4 Bianca Newbatt Has Insufficient Contacts with the State
of California
5 Mitchell Lipkin Has Insufficient Contacts with the State
10 of California
11 6 Michael Bellas Has Insufficient Contacts with the State
of California
12 Cc Plaintiff's Complaint Does Not Allege Facts Showing Trade
Secret Misappropriation
13
D Conference of Counsel Regarding the Complaint.
14 I. LEG AL STANDARD
15 A Legal Standard for a Motion to Dismiss Pursuant to Federal
Rule of Civil Procedure 12(b)(2
16 B Legal Standard for a Motion to Dismiss Pursuant to Federal
Rule of Civil Procedure 12(b)(6)
17
IV. LEGAL ARGUMENT
18 A Plaintiff's Claims Against the Nonresident Defendants Should
Be Dismissed for Lack of Personal Jurisdiction
19
1 The Nonresident Defendants Are Not Subject to General
20 Jurisdiction
2 California Does Not Have Specific Jurisdiction Over The
21 Nonresident Defendants 10
22 Plaintiff's CUTSA Claim Fails for Lack of Sufficient Factual
Allegations 13
23 1 Plaintiff Has Failed to Identify a Trade Secret with
Sufficient Particularity 13
24
2 Plaintiff Failed to State Facts in Support of Its
25 Allegations of Misappropriation 15
Plaintiff Fails to Allege Facts Sufficient to State a Claim for
26 Breach of Contract 17
27 Plaintiffs Causes of Action for Breach of the Implied Covenant
of Good Faith and Fair Dealing Are Derivative and Subsumed
28 by the Breach of Contract Causes of Action 18
1 Case No.: 2:21-cv-00041-ODW (AFMx)
TABLE OF CONTENTS.
FP 40155792.2
Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 3 of 34 Page ID #:328
Plaintiff Fails to State a Claim_ for Common Law
Misaj propriation of Trade Secrets, Conversion, Intentional
Inter: erence with Contractual Relations, Intentional
Interference with Prospective Economic Advantage, and Unfair
Business Practices 19
1 Plaintiffs common law and tort claims are preempted by
the CUTSA because the are based on the same nucleus
of facts as Plaintiff's CUTSA claim... 19
Even if not preempted, Plaintiff fails to allege sufficient
facts for its conversion, intentional interference with
contractual relations, intentional interference with
prospective economic advantage, and unfair business
practices claims 22
a) The Complaint fails to adequately plead a
conversion cause Of ACtiON. ..... ci ceeeeeteteeeteteeeeeteteees 22
b) The Complaint fails to adequately plead_ its
10 intentional interference with contractual relations
and intentional interference with prospective
11 economic advantage claims.. 23
12 c) The Complaint fails to adequately plead an unfair
business practices Claim. ....... ccc eseeeeteeeeeeseteteeeeeeeees 24
13 F Defendant WesTele is a “Sham” Defendant and Should Be
Dismissed from this Action Pursuant to FRCP 2 25
14 Vv CONCLUSION 25
15
16
17
18
19
20
21
22
23
24
25
26
27
28
2 Case No.: 2:21-cv-00041-ODW (AFMx)
TABLE OF CONTENTS.
FP 40155792.2
Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 4 of 34 Page ID #:329
TABLE OF AUTHORITIES
Page(s)
Federal Cases
Brocade Communications Systems, Inc. v. Al0 Networks, Inc.,
873 F.Supp.2d 1192 (N.D. Cal. 2012) 15
Acrisure of California, LLC v. SoCal Commercial Ins. Servs., Inc.,
No. CV1810187CJCADSX, 2019 WL 4137618 (C.D. Cal. Mar.
27, 2019) 14
AirDefense, Inc. v. AirTight Networks, Inc.,
2006 WL 2092053 (N.D. Cal. July 26, 2006) 20
10
11 Alta Devices, Inc. v. LG Electronics, Inc.,
343 F.Supp.3d 868 (N.D. Cal. 2018) 14
12
Ashcroft v. Iqbal,
13
556 U.S. 662 (2009) 8,24
14
Bayer Corp. v. Roche Molecular Sys., Inc.,
15 72 F.Supp.2d 1111 (N.D. Cal. 1999) 16
16
Bell Atlantic Corp. v. Twombly,
17 550 U.S. 544 (2007) 8, 24
18 Bladeroom Grp. Ltd. v. Facebook, Inc.,
19 No. 15-1370 EJD, 2015 WL 8028294 (N.D. Cal. Dec. 7, 2015) 14
20 Blazheiev v. Ubisoft Toronto Inc.,
No. 17-CV-07160-EMC, 2018 WL 3417481 (N.D. Cal. July 13,
21
2018) 11
22
Bristol-Myers Squibb Co. v. Superior Court,
23 137 S.Ct. 1773 (2017) 10
24
Burger King Corp. v. Rudzewicz,
25 471 U.S. 462 (1985) 10
26 Buxton vy. Eagle Test Sys., Inc.,
27 2010 WL 13400749 (N.D. Cal. Mar. 26, 2010) 23
28
1 Case No.: 2:21-cv-00041-ODW (AFMx)
TABLE OF AUTHORITIES
FP 40155792.2
Case 2:2[-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 5 of 34 Page ID #:330
Chang v. Biosuccess Biotech Co., Ltd.,
76 F.Supp.3d 1022 (C.D. Cal. 2014) 19, 20
Continental Appliances, Inc. v. Thomas,
2012 WL 3646887, *5 (N.D. Cal. Aug. 23, 2012
Conversion Logic, Inc. v. Measured, Inc.
No. 19-CV-05546, 2019 WL 6828283, at *6 (C.D. Cal. Dec. 13,
2019).. 18
Core-Vent Corp. v. Nobel Indus. AB,
11 F.3d 1482, 1485 (9th Cir. 1993)
10 Daniels— Hall v. National Educ. Ass’n,
11 629 F.3d 992 (9th Cir. 2010)
12 Digital Envoy, Inc. v. Google, Inc.,
13
370 F.Supp.2d 1025 (N.D. Cal. 2005) . 20
14 Elghasen v. RBS Computer, Inc.,
692 F.App’x 940 (9th Cir. 2017) 12
15
Gates Learjet Corp. v. Jensen,
16
17 743 F.2d 1325, 1330-31 (9th Cir. 1984)
18 GlobeSpan, Inc. v. O'Neill,
19
151 F. Supp. 2d 1229 (C.D. Cal. 2001) 16
20 Gonzalez Corp. v. Consejo Nacional,
614 F.2d 1247 (9th Cir. 1980) 11
21
Hatset v. Century 21 Gold Coast Realty,
22
649 Fed. App’x 400 (9th Cir. 2016) 11
23
Helicopteros Nacionales de Colombia, S.A. v. Hall,
24
466 U.S. 408, 415 (1984) 8,9
25
26 HiRel Connectors, Inc. v. U.S.,
No. CV-01-11069 DSF, 2006 WL 3618011 (C.D. Cal. Jan. 25,
27 2006) 15
28
2 Case No.: 2:21-cv-00041-ODW (AFMx)
TABLE OF AUTHORITIES
FP 40155792.2
Case 2:2[l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 6 of 34 Page ID #:331
Imax Corp. v. Cinema Techs., Inc.,
152 F.3d 1161 (9th Cir. 1998) 13
Kellman v. Whole Foods Mkt., Inc.,
313 F.Supp.3d 1031 (N.D. Cal. 2018)...
Kendall v. Visa U.S.A.,
518 F.3d 1042 (9th Cir. 2008)
Loder v. World Sav. Bank, N.A.,
No. 11-CV-53-THE, 2011 WL 1884733 (N.D. Cal. May 18,
2011) 24
Mattel, Inc. v. MGA Entertainment, Inc.,
10 782 F.Supp.2d 911 (C.D. Cal. 2011) 20
11 Mediostream, Inc. v. Microsoft Corp.,
12
869 F.Supp.2d 1095 (N.D. Cal. 2012) . 20
13 Morrill v. Scott Financial Corporation,
873 F.3d 1136 (9th Cir. 2017) 11
14
Morris v. Princess Cruises, Inc.,
15
236 F.3d 1061 (9th Cir. 2001) 25
16
Neilson v. Union Bank of Cal.,
17 N.A., 290 F.Supp.2d 1101, 1111 (C.D. Cal. 2003)
18
Pellerin vy. Honeywell Intern., Inc.,
19 877 F.Supp.2d 983 (S.D. Cal. 2012) 18
20 Picot v. Weston,
21 780 F.3d 1206 (9th Cir. 2015) 12
22 Richmond Techs., Inc. v. Aumtech Bus. Sols.,
23
2011 WL 2607158 (N.D. Cal. July 1, 2011) 16
24 Rio Props., Inc. v. Rio Int’l Interlink,
284 F.3d 1007 (9th Cir. 2002)
25
Sandoval v. Greenbrier Co.,
26
No. C 18-7668
27
28
3 Case No.: 2:21-cv-00041-ODW (AFMx)
TABLE OF AUTHORITIES
FP 40155792.2
Case 2:2[-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 7 of 34 Page ID #:332
Schwarzenegger v. Fred Martin Motor Co.,
374 F.3d 797 (9th Cir. 2004) 7, 8,9, 10
Walden v. Fiore,
571 U.S. 277 (2014). 11, 12
In re Yahoo Mail Litig.,
7 F.Supp.3d 1016 (N.D. Cal. 2014)
State Cases
Altavion, Inc. v. Konica Minolta Sys. Lab., Inc.,
226 Cal.App.4th 26 (2014) 13
Angelica Textile Services, Inc. v. Park,
10
220 Cal.App.4th 495 (2013) 22
11
Careau & Co. v. Security Pac. Business Credit, Inc.,
12 222 Cal.App.3d 1371 (1991)... 19
13
CDF Firefighters v. Maldonado,
14 158 Cal.App.4th 1226 (2008) 17
15 Cytodyn, Inc. v. Amerimmune Pharms., Inc.,
16 160 Cal.App.4th 288 (2008) 13
17 Diodes, Inc. v. Franzen,
18
260 Cal.App.2d 244 (1968) 13, 15
19 DVD Copy Control Ass’n Inc. v. Bunner,
116 Cal.App.4th 241 (2004) 14, 15
20
Guz v. Bechtel Nat'l Inc.,
21
24 Cal.App.4th 317 (2000) 18, 19
22
Ixchel Pharma, LLC v. Biogen, Inc.,
23 9 Cal.5th 1130 (2020) 23
24
K.C. Multimedia, Inc. v. Bank of America Tech. & Operations, Inc.,
25 171 Cal.4th 939 (2009) 19, 20
26 Los Angeles Federal Credit Union v. Madatyan,
27 209 Cal.App.4th 1383 (2012) 22
28
4 Case No.: 2:21-cv-00041-ODW (AFMx)
TABLE OF AUTHORITIES
FP 40155792.2
Case 2:2[-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 8 of 34 Page ID #:333
Pac. Gas & Elec. Co. v. Bear Stearns & Co.,
50 Cal.3d 1118 (1990) 23
Pavlovich v. Sup. Ct.,
29 Cal.4th 262 (2002)...
Silvaco Data Systems v. Intel Corp.,
184 Cal.App.4th 210 (2010) 20
The Retirement Group v. Galante,
176 Cal.App.4th 1226 (2009) 16
Welco Elecs., Inc. v. Mora,
223 Cal.App.4th 202 (2014)... 22
10
Whyte v. Schlage Lock Co.,
11 101 Cal.App.4th 1443 (2002) 16
12 Youst v. Longo,
13 43 Cal.3d 64 (1987) 23
14 State Statutes
15 California Uniform Trade Secrets Act ....
16
Civil Code § 3426 et seq,
17
Rules
18
Federal Rule of Civil Procedure 4(m)
19
20 Federal Rule of Civil Procedure 8(a)(2)
21 Federal Rule of Civil Procedure 12(b)(2)
22 Federal Rule of Civil Procedure 12(b)(6) passim
23
Federal Rule of Civil Procedure 21 3,25
24
25
26
27
28
5 Case No.: 2:21-cv-00041-ODW (AFMx)
TABLE OF AUTHORITIES
FP 40155792.2
Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 9 of 34 Page ID #:334
I INTRODUCTION
On November 20, 2020, Plaintiff Butler America, LLC filed suit against
UCOMMG, LLC, (SUCOMMG”) Unified Communications Group, Inc,
(“Unified”) Kenneth W. Newbatt, Bianca Newbatt, Mitchell C. Lipkin, Michael J.
Bellas, and WesTele Utility Solutions, LLC! (“WesTele”) (collectively
“Defendants”) alleging claims for (1) Breach of Contract; (2) Breach of Implied
Covenant of Good Faith and Fair Dealing; (3) Misappropriation of Trade Secrets
(Civil Code § 3426 et seq.); (4) Misappropriation of Trade Secrets (Common Law);
(5) Conversion; (6) Intentional Interference with Contractual Relations; (7)
10 Intentional Interference with Prospective Economic Advantage; and (8) Unfair
11 Business Practices. Doc. 1 The Breach of Contract and Breach of Implied Covenant
12 of Good Faith and Fair Dealing causes of action are alleged against individuals
13 Mitchell Lipkin and Michael Bellas (collectively “Former Employees”) only; the
14 remaining causes of action are alleged against all Defendants.
15 Plaintiff's lawsuit is subject to dismissal for a variety of reasons. First,
16 UCOMMG, Unified, Kenneth Newbatt, Bianca Newbatt,? Mitchell Lipkin, and
17 Michael Bellas (collectively the “Nonresident Defendants”) should be completely
18 dismissed from the lawsuit for lack of personal jurisdiction. Specifically, the
19 Nonresident Defendants are not subject to general personal jurisdiction in
20 California because they are citizens of other states and are not otherwise “at home”
21 in California. The Nonresident Defendants are not subject to specific personal
22 jurisdiction in this Court because Plaintiff's lawsuit does not arise out of any
23
24 ' Defendant Jimmie Garrett Baker, Jr. was also named in the lawsuit. Mr. Baker is
separately filing a motion to compel arbitration. As stated in Defendants’ notice of
25 removal, Mr. Baker is also a fraudulently joined defendant who was named solely
to defeat diversity jurisdiction.
26
? To date, Bianca Newbatt has not yet been served. The time limit for Plaintiff to
27 serve Mrs. Newbatt expires on April 4, 2021. Mrs. Newbatt expressly reserves the
right to file a motion to dismiss pursuant to Fed. R. Civ. Proc. 4(m) if Plaintiff fails
28 to timely serve her.
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contacts the Nonresident Defendants have with California.
Each of Plaintiffs causes of action are subject to dismissal for additional
reasons. Plaintiff's claim for trade secret misappropriation under the California
Uniform Trade Secrets Act (“CUTSA”) is subject to dismissal because Plaintiff's
Complaint makes the conclusory allegation that all Defendants acquired and used
trade secrets without alleging any factual basis for this conclusion. What is clearly
missing from the Complaint are allegations as to what specific trade secrets were
allegedly stolen, what makes the particular information at issue a trade secret,
whether the information is generally available through public sources, and how
10 particular types of information at issue (such as contact information) is confidential
11 and not generally available. Also missing from the Complaint are factual
12 allegations of any actual taking or acquisition of trade secret information by each
13 Defendant. Rather than alleging facts, Plaintiff merely recites the elements of the
14 claim using the language of the CUTSA. Additionally, the Complaint does not
15 allege substantive allegations against each Defendant and instead improperly
16 lumps three entities and four individuals together in its allegations of trade secret
17 misappropriation.
18 Plaintiff's breach of contract claims are based not only on the inadequately
19 pled trade secret allegations, but also on confidentiality clauses that are void and
20 unenforceable in California. Plaintiffs claims for breach of the implied covenant
21 of good faith and fair dealing are identical to its breach of contract claims and are
22 therefore superfluous. These claims are deficient and should also be dismissed.
23 Plaintiff's remaining claims for “common law” misappropriation of trade
24 secrets, conversion, intentional interference with contractual relations, intentional
25 interference with prospective economic advantage, and unfair business practices
26 rely on allegations of trade secret misappropriation and are, therefore, preempted
27 by the CUTSA. Even if these claims were not preempted, Plaintiff has failed to
28 plead sufficient facts to support these claims. Accordingly, these claims should be
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dismissed as a matter of law.
Finally, Plaintiff has not stated and cannot state any legally viable claim
against WesTele. WesTele is a fraudulently joined defendant, who was named
solely to defeat diversity jurisdiction. As such, WesTele should be dismissed
pursuant to Federal Rule of Civil Procedure 21.
Defendants respectfully request that this Court find in their favor with
respect to the foregoing issues and grant this Motion to Dismiss in its entirety
without leave to amend.
Il. STATEMENT OF RELEVANT ALLEGED FACTS
10 A The Parties
11 Plaintiff alleges that it provides staffing services. Compl. 4 1. Plaintiff
12 alleges that Defendants Michael Bellas, Mitchell Lipkin, and Jimmie Baker
13 separated employment from Plaintiff and now work for UCOMMG and/or Unified.
14 Compl. § 35, 42, 50, 54. Plaintiff alleges that Kenneth Newbatt and Bianca
15 Newbatt are officers of UCOMMG and are former officers of UCG. Compl. § 11,
16 14. Lastly, Plaintiff alleges that Baker formed WesTele Utility Solutions, LLC
17 (“WesTele’’) to compete with Plaintiff. Compl. ¥ 52.
18 B The Nonresident Defendants’ Contacts with California
19 1 UCOMMG Has Insufficient Contacts with the State of
20 California
21 UCOMMG is a Nevada limited liability company. Declaration of Kenneth
22 Newbatt (“K. Newbatt Decl.”) 9 4. UCOMMG’s principal place of business is in
23 Washington. /d. UCOMMG’s sole member is Kenneth Newbatt, who is a resident
24 and citizen of the state of Washington. Jd. § 2. UCOMMG does not have any
25 offices or place of business in California. Id. 5. UCOMMG only has one
26 employee in California that does work for a New York based client and has a few
27 independent contractors that work in California. /d. 45. Otherwise, VCOMMG
28 does not have any current clients in California. Jd. 4 5.
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2 Unified Has Insufficient Contacts with the State of California
Unified is a dissolved corporation. /d. §] 6. Unified was incorporated in the
state of Washington and Unified’s principal place of business was in the state of
Washington. Jd. § 6. Unified does not have any offices or place of business,
employees, or clients in California. Jd. 4 7.
3 Kenneth Newbatt Has Insufficient Contacts with the State of
California
Mr. Newbatt is a citizen of Washington and currently resides in Washington,
where he has resided since 2008. Jd. §] 2. Mr. Newbatt has never resided in
10 California. Jd. § 3. He only comes to California once a year for a vacation.
Preview
ELECTRONICALLY FILED Superior Court of California County of Santa Barbara Shayna Balch Santiago (SBN 304802) E-Mail: ssantiago@fisherphillips.com Darrel E. Parker, Executive Officer FISHER & PHILLIPS LLP 9/22/2021 1:28 PM 3200 N. Central Avenue, Suite 1550 By: Narzralli Baksh, Deputy Phoenix, Arizona 85012-2487 Telephone: (602) 281-3400 Facsimile: (602) 281-3401 Kathryn M. Evans (SBN 323190) E-Mail: kmevans@fisherphillips.com FISHER & PHILLIPS LLP 4747 Executive Drive, Suite 1000 San Diego, California 92121 Telephone: (858) 597-9600 Facsimile: (858) 597-9601 Attorneys for Defendants UCOMMG, LLC; Unified Communications Group, Inc.; 10 Kenneth W. Newbatt; Bianca Newbatt; Mitchell C. Lipkin; Michael J. Bellas; Jimmie Garrett Baker, Jr.; 11 WesTele Utility Solutions, LLC; and Cynthia Baker 12 SUPERIOR COURT OF THE STATE OF CALIFORNIA 13 FOR THE COUNTY OF SANTA BARBARA - ANACAPA DIVISION 14 15 BUTLER AMERICA, LLC, a Delaware CASE NO.: 20CV03877 limited liability company, [Unlimited Jurisdiction] 16 Plaintiff, Assigned for all purposes to the 17 Honorable Donna D. Geck, Dept. 4 Vv. 18 DECLARATION OF KATHRYN M. EVANS UCOMMG, LLC, a Nevada limited RE MATERIAL PLEADINGS PURSUANT 19 liability company; UNIFIED TO LR 1308 COMMUNICATIONS GROUP, INC., a 20 dissolved Washington corporation; KENNETH W. NEWBATT, an 21 individual; BIANCA NEWBATT, an Complaint Filed: November 20, 2020 individual; MITCHELL C. LIPKIN, an Removal Filed: January 4, 2021 22 individual; MICHAEL J. BELLAS, an FAC Filed: April 16, 2021 individual; JIMMIE GARRETT BAKER. Remanded to State Court: August 3, 2021 23 JR., an individual; WESTELE UTILITY Trial Date: Not Set SOLUTIONS, LLC, a California limited 24 liability company; and DOES | through 50, inclusive, 25 Defendants. 26 27 28 DEC OF KATHRYN M. EVANS RE MATERIAL PLEADINGS PURSUANT TO LR 1308 FP 41488033.1 DECLARATION OF KATHYRN M. EVANS I, Kathryn M. Evans, hereby declare and state as follows: 1 I am an attorney at law duly licensed to practice before all courts in the State of California. I am an associate with Fisher & Phillips LLP, counsel of record for Defendants UCOMMG, LLC, Unified Communications Group, Inc., Kenneth W. Newbatt, Bianca Newbatt, Mitchell C. Lipkin, Michael J. Bellas, Jimmie Garrett Baker, Jr., WesTele Utility Solutions, LLC, and Cynthia Baker (“Defendants”). Based on my personal knowledge, I assert the facts set forth herein and, if called as a witness, I could and would competently testify thereto. 2 Defendants removed this action to the United States District Court - Central 10 District of California on January 4, 2021. Pursuant to Local Rule 1308, this declaration describes 11 the material pleadings that Defendants filed in the federal action and the pertinent orders or 12 rulings entered in the federal action. 13 3 On March 26, 2021, Defendants UCOMMG, LLC, Unified Communications 14 Group, Inc., Kenneth Newbatt, Bianca Newbatt, Mitchell Lipkin, Michael Bellas, and WesTele 15 Utlity Solutions, LLC filed a Motion to Dismiss Pursuant to Federal Rules of Civil procedure 16 12(b)(2) and 12(b)(6). Attached hereto as Exhibit A are conformed copies of the notice, 17 memorandum of points and authorities, proposed order, and supporting declarations in support 18 of the Motion to Dismiss. 19 4. On March 26, 2021, Defendant Jimmie Garrett Baker, Jr. filed a Motion to 20 Compel Arbitration. Attached hereto as Exhibit B are conformed copies of the notice, 21 memorandum of points and authorities, proposed order, and supporting declaration in support of 22 the Motion to Compel Arbitration. 23 5 On April 12, 2021, Defendant Baker filed a reply brief in support of his Motion 24 to Compel Arbitration. Attached hereto as Exhibit C is a conformed copy of the reply brief in 25 support of the Motion to Compel Arbitration. 26 6. On April 16, 2021, Plaintiff filed a First Amended Complaint. On April 19, 2021, 27 the district court denied Defendants’ Motion to Dismiss as moot. A true and correct copy of the 28 district court’s order is attached hereto as Exhibit D. 2 DEC OF KATHRYN M. EVANS RE MATERIAL PLEADINGS PURSUANT TO LR 1308 FP 41488033.1 7 On April 30, 2021, Defendants filed a Motion to Dismiss Plaintiff's First Amended Complaint Pursuant to Federal Rules of Civil Procedure 12(b)(2) and 12(b)(6). Attached hereto as Exhibit E are conformed copies of the notice, memorandum of points and authorities, proposed order, and supporting declarations in support of the Motion to Dismiss Plaintiff's First Amended Complaint. 8 On May 24, 2021, Defendants filed a reply brief in support of their Motion to Dismiss Plaintiff’s First Amended Complaint. Attached hereto as Exhibit F is a conformed copy of the reply brief in support of the Motion to Dismiss Plaintiffs First Amended Complaint. 9 On August 3, 2021, the district court remanded the action to state court and denied 10 the Motion to Compel Arbitration and Motion to Dismiss Plaintiffs First Amended Complaint 11 at moot. A true and correct copy of the district court’s order is attached hereto as Exhibit G. 12 10. I declare under penalty of perjury, under the laws of the State of California, that 13 the foregoing is true and correct. Executed on September 20, 2021, at San Diego, California. 14 15 DATE: September 20, 2021 FISHER & PHILLIPS LLP ( 16 17 18 By: Wy ayna Balclf Saftiago 19 thryn M. Hvayis 4 orneys for efendants 20 UCOMMG, LLC; Unified Communications Group, Inc.; Kenneth W. Newbatt; Bianca Newbatt; Mitchell 21 C. Lipkin; Michael J. Bellas; Jimmie Garrett Baker, Jr.; WesTele Utility Solutions, LLC; and Cynthia 22 Baker 23 24 25 26 27 28 3 DEC OF KATHRYN M. EVANS RE MATERIAL PLEADINGS PURSUANT TO LR 1308 FP 41488033.1 EXHIBIT A Case 2121-cv-00041-ODW-AFM Document 11 Filed 03/26/21 Page 1 of 3 Page ID #:323 Shayna H. Balch (SBN 304802 -Mail: sbalch@fishe rphillips.com FISHER & PHILLIPS L 3200 N. Central Avenue, Suite 1550 Phoenix, Arizona 85012-2487 Facsimile: ( Telephone: 602) 281-3400 602 281-3401 Kathryn M. Evans (SBN 323190 E-Mail kmevans fishe’ phil ips.com FISHER & PHILLIPS LL 4747 Executive Drive, Suite 1000 San Diego, California 92121 Facsimile: ( Telephone: 858 597-9600 858 597-9601 Attorneys for Defendants UCOMMG, LLC; Unified Communications 10 Group, Inc.; Kenneth W. Newbatt; Bianca Newbatt; Mitchell C. Lipkin; Michael J. Bellas; 11 Jimmie arrett Baker, Jr.; and WesTele Utility Solutions, LLC 12 13 UNITED STATES DISTRICT COURT 14 CENTRAL DISTRICT OF CALIFORNIA — WESTERN DIVISION 15 16 BUTLER AMERICA, LLC, a Case No: 2:21-cv-00041-ODW (AFMx) Delaware limited liability company, 17 [Removed from Santa Barbara Superior Plaintiff, Court, Case No. 20CV03877] 18 Vv. DEFENDANTS’ NOTICE OF MOTION 19 AND MOTION TO DISMISS UCOMMG, LLC, a Nevada limited PURSUANT TO FRCP 12(B)(2) AND 20 liability company; UNIFIED 12(B)(6) COMMUNICATIONS GROUP, 21 22 INC., a dissolved Washington oration, KENNETH NEWBATT, an individual; W. P Fi iled concurrently with Memorandum of oints and Authorities; Declarations of Michael Bellas, Mitchell Lipkin, Bianca BIANCA NEWBATT, an Newbatt, Kenneth Newbatt, and Shayna H. ns 23 individual; MITCHELL C. LIPKIN, Balch; and [Proposed] Order Thereof] an individual; MICHAEL J. 24 BELLAS, an individual; JIMMIE Date: ril 26, 2021 GARRETT BAKER, JR., an Time: 0 p.m. 25 individual; WESTELE UTILITY Courtroom: SOLUTIONS, LLC, a California Judge: Hon. Otis D. Wright, II 26 limited liability compan DOES | through 50, inclusive, State Complaint Filed: November 20, 2020 27 Removal Filed: January 4, 2021 Defendants. Trial Date: Not Set 28 Case No.: 2:21-cv-00041-ODW (AFMx) DEFS' NTC OF MTN AND MTD FP 40155447.1 Case 2121-cv-00041-ODW-AFM Document 11 Filed 03/26/21 Page 2o0f3 Page ID #:324 TO ALL PARTIES AND THEIR ATTORNEYS OF RECORD HEREIN: NOTICE IS HEREBY GIVEN that on April 26, 2021 at 1:30 p.m., or as soon thereafter as the matter may be heard, before Hon. Otis D. Wright, II, in Courtroom 5D, of the above-entitled Court, located at First Street Courthouse, 350 West 1“ Street, Los Angeles, California 90012, Defendants UCOMMG, LLC, Unified Communications Group, Inc., Kenneth W. Newbatt, Bianca Newbatt, Mitchell C. Lipkin, Michael J. Bellas, and WesTele Utility Solutions, LLC (hereinafter “Defendants”) will move this Court for: 1) an order dismissing 10 Defendants UCOMMG, LLC, Unified Communications Group, Inc., Kenneth 11 Newbatt, Bianca Newbatt, Mitchell Lipkin, and Michael Bellas from this action in 12 its entirety pursuant to Fed. Rule of Civ. Proc. 12(b)(2) for lack of personal 13 jurisdiction; 2) to dismiss all claims asserted against Defendants in the Complaint 14 filed by Plaintiff Butler America, LLC for failure to state a claim pursuant to Fed. 15 Rule of Civ. Proc. 12(b)(6); and 3) to dismiss Defendant WesTele Utility Solutions, 16 LLC from this action as a fraudulently joined “sham” defendant. 17 This motion is based on this notice, the Memorandum of Points and 18 Authorities attached hereto, the Declarations of Shayna H. Balch, Kenneth 19 Newbatt, Bianca Newbatt, Mitchell Lipkin, and Michael Bellas, all papers 20 previously filed in this matter, and on such other and further evidence which may 21 be presented at the time of the hearing. 22 This motion is made following the conference of counsel pursuant to L.R. 7- 23 3 which took place on January 13, 2021. 24 Dated: March 26, 2021 Respectfully submitted, 25 FISHER & PHILLIPS LLP 26 By /s/ Kathryn M. Evans Shayna H. Balch 27 Kathryn M. Evans 28 Attorneys for Defendants 1 Case No.: 2:21-cv-00041-ODW (AFMx) DEFS' NTC OF MTN AND MTD FP 40155447.1 Case 2121-cv-00041-ODW-AFM Document 11 Filed 03/26/21 Page 30f3 Page ID #:325 CERTIFICATE OF SERVICE I, the undersigne d. am em) California. I am over the age 0 Page d in the County of Sacramento, State of and not a party to the within action; am 7 e emplo; ed with the law offices of Fisher & Philli s LEP and mM Wy, business address is 474 Executive Drive, Suite 1000, San Diego, alifornia 92 On March 26, 2021 I served the foregoin document entitled DEFENDANTS’ NOTICE OF MOTION AND OTION TO DISMISS PURSUANT TO FRCP 12(B)(2) AND 12(B)(6) on all the appearing and/or interested parties in this action as follows: { 25) Paul P. Young Tel: (6: 2 744-1838 Joseph Chora Fax: 6 744-3167 Armen Manasserian Email: paul@chorayoungllp.com; ‘ Cameron H. Totten joseph@chorayoungllp.com; CHORA YOUNG LLP armen@chorayoungllp.com; 10 650 Sierra Madre Villa Ave, Suite 304 ctotten@ctottenlaw.com; Pasadena, CA 91107 Attorneys for Plain Hf 11 Butler America, LL 12 [by ELECTRONIC SUBMISSION] - I served the above listed 13 document(s) described via the United States District Court’s Electronic Filing Program on the designated recipients via electronic transmission 14 through the CM/ECF system on the Court’s website. The Court’s CM/ECF 15 stem will enerate a otice of Electronic Filing (NEF) to the fili nN the assigned judge, and an constitute service of the registered users in the case. The N locument(s). Registration as a CM/ECF user arty, will EF 16 constitutes consent to electronic service through the court’s transmission facilities. 17 18 I declare that | am employed in the office of a member of the bar of this Court at whose direction the service was made. 19 Executed March 26, 2021 at San Diego, California. 20 Gwen Nuttall By: 21 Print Name ignature 22 23 24 25 26 27 28 1 CERTIFICATE OF SERVICE FP 40155447.1 Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 1 of 34 Page ID #:326 Shayna H. Balch (SBN 304802 -Mail: sbalch@fishe rphillips.com FISHER & PHILLIPS L 3200 N. Central Avenue, Suite 1550 Phoenix, Arizona 85012-2487 Facsimile: ( Telephone: 602) 281-3400 602 281-3401 Kathryn M. Evans (SBN 323190 E-Mail kmevans fishe’ phil ips.com FISHER & PHILLIPS LL 4747 Executive Drive, Suite 1000 San Diego, California 92121 Facsimile: ( Telephone: 858 597-9600 858 597-9601 Attorneys for Defendants UCOMMG, LLC; Unified Communications 10 Group, Inc.; Kenneth W. Newbatt; Bianca Newbatt; Mitchell C. Lipkin; Michael J. Bellas; 11 Jimmie arrett Baker, Jr.; and WesTele Utility Solutions, LLC 12 13 UNITED STATES DISTRICT COURT 14 CENTRAL DISTRICT OF CALIFORNIA — WESTERN DIVISION 15 16 BUTLER AMERICA, LLC, a Case No: 2:21-cv-00041-ODW (AFMx) Delaware limited liability company, 17 [Removed from Santa Barbara Superior Plaintiff, Court, Case No. 20CV03877] 18 Vv. MEMORANDUM OF POINTS AND 19 AUTHORITIES IN SUPPORT OF UCOMMG, LLC, a Nevada limited DEFENDANTS’ MOTION TO 20 liability company; UNIFIED DISMISS PURSUANT TO FRCP COMMUNICATIONS GROUP, 12(B)(2) AND 12(B)(6) 21 INC., a dissolved Washington oration, KENNETH W. Filed concurrently with Notice of Motion; 22 NEWBATT, an individual; eclarations of. ichael Bellas, itchell BIANCA NEWBATT, an Lipkin, Bianca Newbatt, Kenneth Newbatt, 23 individual; MITCHELL C. LIPKIN, and Shayna H. Balch; and [Proposed] an individual; MICHAEL J. Order Thereof] 24 BELLAS, an individual; JIMMIE GARRETT BAKER, JR., an Date: April 26, 2021 25 individual; WESTELE UTILITY Time: :30 p.m. SOLUTIONS, LLC, a California Courtroom: 5D 26 limited liability compan Judge: Hon. Otis D. Wright, II DOES | through 50, inclusive, 27 State Complaint Filed: November 20, 2020 Defendants. Removal Filed: January 4, 2021 28 Trial Date: Not Set Case No.: 2:21-cv-00041-ODW (AFMx) MPA ISO DEFS' MTD FP 40155792.2 Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 2 of 34 Page ID #:327 TABLE OF CONTENTS INTRODUCTION II STATEMENT OF RELEVANT ALLEGED FACTS.. A The Parties B The Nonresident Defendants’ Contacts with California 1 UCOMMG Has Insufficient Contacts with the State of California 2 Unified Has Insufficient Contacts with the State of California 3 Kenneth Newbatt Has Insufficient Contacts with the State of California. 4 Bianca Newbatt Has Insufficient Contacts with the State of California 5 Mitchell Lipkin Has Insufficient Contacts with the State 10 of California 11 6 Michael Bellas Has Insufficient Contacts with the State of California 12 Cc Plaintiff's Complaint Does Not Allege Facts Showing Trade Secret Misappropriation 13 D Conference of Counsel Regarding the Complaint. 14 I. LEG AL STANDARD 15 A Legal Standard for a Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(2 16 B Legal Standard for a Motion to Dismiss Pursuant to Federal Rule of Civil Procedure 12(b)(6) 17 IV. LEGAL ARGUMENT 18 A Plaintiff's Claims Against the Nonresident Defendants Should Be Dismissed for Lack of Personal Jurisdiction 19 1 The Nonresident Defendants Are Not Subject to General 20 Jurisdiction 2 California Does Not Have Specific Jurisdiction Over The 21 Nonresident Defendants 10 22 Plaintiff's CUTSA Claim Fails for Lack of Sufficient Factual Allegations 13 23 1 Plaintiff Has Failed to Identify a Trade Secret with Sufficient Particularity 13 24 2 Plaintiff Failed to State Facts in Support of Its 25 Allegations of Misappropriation 15 Plaintiff Fails to Allege Facts Sufficient to State a Claim for 26 Breach of Contract 17 27 Plaintiffs Causes of Action for Breach of the Implied Covenant of Good Faith and Fair Dealing Are Derivative and Subsumed 28 by the Breach of Contract Causes of Action 18 1 Case No.: 2:21-cv-00041-ODW (AFMx) TABLE OF CONTENTS. FP 40155792.2 Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 3 of 34 Page ID #:328 Plaintiff Fails to State a Claim_ for Common Law Misaj propriation of Trade Secrets, Conversion, Intentional Inter: erence with Contractual Relations, Intentional Interference with Prospective Economic Advantage, and Unfair Business Practices 19 1 Plaintiffs common law and tort claims are preempted by the CUTSA because the are based on the same nucleus of facts as Plaintiff's CUTSA claim... 19 Even if not preempted, Plaintiff fails to allege sufficient facts for its conversion, intentional interference with contractual relations, intentional interference with prospective economic advantage, and unfair business practices claims 22 a) The Complaint fails to adequately plead a conversion cause Of ACtiON. ..... ci ceeeeeteteeeteteeeeeteteees 22 b) The Complaint fails to adequately plead_ its 10 intentional interference with contractual relations and intentional interference with prospective 11 economic advantage claims.. 23 12 c) The Complaint fails to adequately plead an unfair business practices Claim. ....... ccc eseeeeteeeeeeseteteeeeeeeees 24 13 F Defendant WesTele is a “Sham” Defendant and Should Be Dismissed from this Action Pursuant to FRCP 2 25 14 Vv CONCLUSION 25 15 16 17 18 19 20 21 22 23 24 25 26 27 28 2 Case No.: 2:21-cv-00041-ODW (AFMx) TABLE OF CONTENTS. FP 40155792.2 Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 4 of 34 Page ID #:329 TABLE OF AUTHORITIES Page(s) Federal Cases Brocade Communications Systems, Inc. v. Al0 Networks, Inc., 873 F.Supp.2d 1192 (N.D. Cal. 2012) 15 Acrisure of California, LLC v. SoCal Commercial Ins. Servs., Inc., No. CV1810187CJCADSX, 2019 WL 4137618 (C.D. Cal. Mar. 27, 2019) 14 AirDefense, Inc. v. AirTight Networks, Inc., 2006 WL 2092053 (N.D. Cal. July 26, 2006) 20 10 11 Alta Devices, Inc. v. LG Electronics, Inc., 343 F.Supp.3d 868 (N.D. Cal. 2018) 14 12 Ashcroft v. Iqbal, 13 556 U.S. 662 (2009) 8,24 14 Bayer Corp. v. Roche Molecular Sys., Inc., 15 72 F.Supp.2d 1111 (N.D. Cal. 1999) 16 16 Bell Atlantic Corp. v. Twombly, 17 550 U.S. 544 (2007) 8, 24 18 Bladeroom Grp. Ltd. v. Facebook, Inc., 19 No. 15-1370 EJD, 2015 WL 8028294 (N.D. Cal. Dec. 7, 2015) 14 20 Blazheiev v. Ubisoft Toronto Inc., No. 17-CV-07160-EMC, 2018 WL 3417481 (N.D. Cal. July 13, 21 2018) 11 22 Bristol-Myers Squibb Co. v. Superior Court, 23 137 S.Ct. 1773 (2017) 10 24 Burger King Corp. v. Rudzewicz, 25 471 U.S. 462 (1985) 10 26 Buxton vy. Eagle Test Sys., Inc., 27 2010 WL 13400749 (N.D. Cal. Mar. 26, 2010) 23 28 1 Case No.: 2:21-cv-00041-ODW (AFMx) TABLE OF AUTHORITIES FP 40155792.2 Case 2:2[-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 5 of 34 Page ID #:330 Chang v. Biosuccess Biotech Co., Ltd., 76 F.Supp.3d 1022 (C.D. Cal. 2014) 19, 20 Continental Appliances, Inc. v. Thomas, 2012 WL 3646887, *5 (N.D. Cal. Aug. 23, 2012 Conversion Logic, Inc. v. Measured, Inc. No. 19-CV-05546, 2019 WL 6828283, at *6 (C.D. Cal. Dec. 13, 2019).. 18 Core-Vent Corp. v. Nobel Indus. AB, 11 F.3d 1482, 1485 (9th Cir. 1993) 10 Daniels— Hall v. National Educ. Ass’n, 11 629 F.3d 992 (9th Cir. 2010) 12 Digital Envoy, Inc. v. Google, Inc., 13 370 F.Supp.2d 1025 (N.D. Cal. 2005) . 20 14 Elghasen v. RBS Computer, Inc., 692 F.App’x 940 (9th Cir. 2017) 12 15 Gates Learjet Corp. v. Jensen, 16 17 743 F.2d 1325, 1330-31 (9th Cir. 1984) 18 GlobeSpan, Inc. v. O'Neill, 19 151 F. Supp. 2d 1229 (C.D. Cal. 2001) 16 20 Gonzalez Corp. v. Consejo Nacional, 614 F.2d 1247 (9th Cir. 1980) 11 21 Hatset v. Century 21 Gold Coast Realty, 22 649 Fed. App’x 400 (9th Cir. 2016) 11 23 Helicopteros Nacionales de Colombia, S.A. v. Hall, 24 466 U.S. 408, 415 (1984) 8,9 25 26 HiRel Connectors, Inc. v. U.S., No. CV-01-11069 DSF, 2006 WL 3618011 (C.D. Cal. Jan. 25, 27 2006) 15 28 2 Case No.: 2:21-cv-00041-ODW (AFMx) TABLE OF AUTHORITIES FP 40155792.2 Case 2:2[l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 6 of 34 Page ID #:331 Imax Corp. v. Cinema Techs., Inc., 152 F.3d 1161 (9th Cir. 1998) 13 Kellman v. Whole Foods Mkt., Inc., 313 F.Supp.3d 1031 (N.D. Cal. 2018)... Kendall v. Visa U.S.A., 518 F.3d 1042 (9th Cir. 2008) Loder v. World Sav. Bank, N.A., No. 11-CV-53-THE, 2011 WL 1884733 (N.D. Cal. May 18, 2011) 24 Mattel, Inc. v. MGA Entertainment, Inc., 10 782 F.Supp.2d 911 (C.D. Cal. 2011) 20 11 Mediostream, Inc. v. Microsoft Corp., 12 869 F.Supp.2d 1095 (N.D. Cal. 2012) . 20 13 Morrill v. Scott Financial Corporation, 873 F.3d 1136 (9th Cir. 2017) 11 14 Morris v. Princess Cruises, Inc., 15 236 F.3d 1061 (9th Cir. 2001) 25 16 Neilson v. Union Bank of Cal., 17 N.A., 290 F.Supp.2d 1101, 1111 (C.D. Cal. 2003) 18 Pellerin vy. Honeywell Intern., Inc., 19 877 F.Supp.2d 983 (S.D. Cal. 2012) 18 20 Picot v. Weston, 21 780 F.3d 1206 (9th Cir. 2015) 12 22 Richmond Techs., Inc. v. Aumtech Bus. Sols., 23 2011 WL 2607158 (N.D. Cal. July 1, 2011) 16 24 Rio Props., Inc. v. Rio Int’l Interlink, 284 F.3d 1007 (9th Cir. 2002) 25 Sandoval v. Greenbrier Co., 26 No. C 18-7668 27 28 3 Case No.: 2:21-cv-00041-ODW (AFMx) TABLE OF AUTHORITIES FP 40155792.2 Case 2:2[-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 7 of 34 Page ID #:332 Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797 (9th Cir. 2004) 7, 8,9, 10 Walden v. Fiore, 571 U.S. 277 (2014). 11, 12 In re Yahoo Mail Litig., 7 F.Supp.3d 1016 (N.D. Cal. 2014) State Cases Altavion, Inc. v. Konica Minolta Sys. Lab., Inc., 226 Cal.App.4th 26 (2014) 13 Angelica Textile Services, Inc. v. Park, 10 220 Cal.App.4th 495 (2013) 22 11 Careau & Co. v. Security Pac. Business Credit, Inc., 12 222 Cal.App.3d 1371 (1991)... 19 13 CDF Firefighters v. Maldonado, 14 158 Cal.App.4th 1226 (2008) 17 15 Cytodyn, Inc. v. Amerimmune Pharms., Inc., 16 160 Cal.App.4th 288 (2008) 13 17 Diodes, Inc. v. Franzen, 18 260 Cal.App.2d 244 (1968) 13, 15 19 DVD Copy Control Ass’n Inc. v. Bunner, 116 Cal.App.4th 241 (2004) 14, 15 20 Guz v. Bechtel Nat'l Inc., 21 24 Cal.App.4th 317 (2000) 18, 19 22 Ixchel Pharma, LLC v. Biogen, Inc., 23 9 Cal.5th 1130 (2020) 23 24 K.C. Multimedia, Inc. v. Bank of America Tech. & Operations, Inc., 25 171 Cal.4th 939 (2009) 19, 20 26 Los Angeles Federal Credit Union v. Madatyan, 27 209 Cal.App.4th 1383 (2012) 22 28 4 Case No.: 2:21-cv-00041-ODW (AFMx) TABLE OF AUTHORITIES FP 40155792.2 Case 2:2[-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 8 of 34 Page ID #:333 Pac. Gas & Elec. Co. v. Bear Stearns & Co., 50 Cal.3d 1118 (1990) 23 Pavlovich v. Sup. Ct., 29 Cal.4th 262 (2002)... Silvaco Data Systems v. Intel Corp., 184 Cal.App.4th 210 (2010) 20 The Retirement Group v. Galante, 176 Cal.App.4th 1226 (2009) 16 Welco Elecs., Inc. v. Mora, 223 Cal.App.4th 202 (2014)... 22 10 Whyte v. Schlage Lock Co., 11 101 Cal.App.4th 1443 (2002) 16 12 Youst v. Longo, 13 43 Cal.3d 64 (1987) 23 14 State Statutes 15 California Uniform Trade Secrets Act .... 16 Civil Code § 3426 et seq, 17 Rules 18 Federal Rule of Civil Procedure 4(m) 19 20 Federal Rule of Civil Procedure 8(a)(2) 21 Federal Rule of Civil Procedure 12(b)(2) 22 Federal Rule of Civil Procedure 12(b)(6) passim 23 Federal Rule of Civil Procedure 21 3,25 24 25 26 27 28 5 Case No.: 2:21-cv-00041-ODW (AFMx) TABLE OF AUTHORITIES FP 40155792.2 Case 2:2/l-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 9 of 34 Page ID #:334 I INTRODUCTION On November 20, 2020, Plaintiff Butler America, LLC filed suit against UCOMMG, LLC, (SUCOMMG”) Unified Communications Group, Inc, (“Unified”) Kenneth W. Newbatt, Bianca Newbatt, Mitchell C. Lipkin, Michael J. Bellas, and WesTele Utility Solutions, LLC! (“WesTele”) (collectively “Defendants”) alleging claims for (1) Breach of Contract; (2) Breach of Implied Covenant of Good Faith and Fair Dealing; (3) Misappropriation of Trade Secrets (Civil Code § 3426 et seq.); (4) Misappropriation of Trade Secrets (Common Law); (5) Conversion; (6) Intentional Interference with Contractual Relations; (7) 10 Intentional Interference with Prospective Economic Advantage; and (8) Unfair 11 Business Practices. Doc. 1 The Breach of Contract and Breach of Implied Covenant 12 of Good Faith and Fair Dealing causes of action are alleged against individuals 13 Mitchell Lipkin and Michael Bellas (collectively “Former Employees”) only; the 14 remaining causes of action are alleged against all Defendants. 15 Plaintiff's lawsuit is subject to dismissal for a variety of reasons. First, 16 UCOMMG, Unified, Kenneth Newbatt, Bianca Newbatt,? Mitchell Lipkin, and 17 Michael Bellas (collectively the “Nonresident Defendants”) should be completely 18 dismissed from the lawsuit for lack of personal jurisdiction. Specifically, the 19 Nonresident Defendants are not subject to general personal jurisdiction in 20 California because they are citizens of other states and are not otherwise “at home” 21 in California. The Nonresident Defendants are not subject to specific personal 22 jurisdiction in this Court because Plaintiff's lawsuit does not arise out of any 23 24 ' Defendant Jimmie Garrett Baker, Jr. was also named in the lawsuit. Mr. Baker is separately filing a motion to compel arbitration. As stated in Defendants’ notice of 25 removal, Mr. Baker is also a fraudulently joined defendant who was named solely to defeat diversity jurisdiction. 26 ? To date, Bianca Newbatt has not yet been served. The time limit for Plaintiff to 27 serve Mrs. Newbatt expires on April 4, 2021. Mrs. Newbatt expressly reserves the right to file a motion to dismiss pursuant to Fed. R. Civ. Proc. 4(m) if Plaintiff fails 28 to timely serve her. 1 Case No.: 2:21-cv-00041-ODW (AFMx) MPA ISO DEFS' MTD FP 40155792.2 Case 4{21-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 10 of 34 Page ID #:335 contacts the Nonresident Defendants have with California. Each of Plaintiffs causes of action are subject to dismissal for additional reasons. Plaintiff's claim for trade secret misappropriation under the California Uniform Trade Secrets Act (“CUTSA”) is subject to dismissal because Plaintiff's Complaint makes the conclusory allegation that all Defendants acquired and used trade secrets without alleging any factual basis for this conclusion. What is clearly missing from the Complaint are allegations as to what specific trade secrets were allegedly stolen, what makes the particular information at issue a trade secret, whether the information is generally available through public sources, and how 10 particular types of information at issue (such as contact information) is confidential 11 and not generally available. Also missing from the Complaint are factual 12 allegations of any actual taking or acquisition of trade secret information by each 13 Defendant. Rather than alleging facts, Plaintiff merely recites the elements of the 14 claim using the language of the CUTSA. Additionally, the Complaint does not 15 allege substantive allegations against each Defendant and instead improperly 16 lumps three entities and four individuals together in its allegations of trade secret 17 misappropriation. 18 Plaintiff's breach of contract claims are based not only on the inadequately 19 pled trade secret allegations, but also on confidentiality clauses that are void and 20 unenforceable in California. Plaintiffs claims for breach of the implied covenant 21 of good faith and fair dealing are identical to its breach of contract claims and are 22 therefore superfluous. These claims are deficient and should also be dismissed. 23 Plaintiff's remaining claims for “common law” misappropriation of trade 24 secrets, conversion, intentional interference with contractual relations, intentional 25 interference with prospective economic advantage, and unfair business practices 26 rely on allegations of trade secret misappropriation and are, therefore, preempted 27 by the CUTSA. Even if these claims were not preempted, Plaintiff has failed to 28 plead sufficient facts to support these claims. Accordingly, these claims should be 2 Case No.: 2:21-cv-00041-ODW (AFMx) MPA ISO DEFS' MTD FP 40155792.2 Case 4{21-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 11o0f34 Page ID #:336 dismissed as a matter of law. Finally, Plaintiff has not stated and cannot state any legally viable claim against WesTele. WesTele is a fraudulently joined defendant, who was named solely to defeat diversity jurisdiction. As such, WesTele should be dismissed pursuant to Federal Rule of Civil Procedure 21. Defendants respectfully request that this Court find in their favor with respect to the foregoing issues and grant this Motion to Dismiss in its entirety without leave to amend. Il. STATEMENT OF RELEVANT ALLEGED FACTS 10 A The Parties 11 Plaintiff alleges that it provides staffing services. Compl. 4 1. Plaintiff 12 alleges that Defendants Michael Bellas, Mitchell Lipkin, and Jimmie Baker 13 separated employment from Plaintiff and now work for UCOMMG and/or Unified. 14 Compl. § 35, 42, 50, 54. Plaintiff alleges that Kenneth Newbatt and Bianca 15 Newbatt are officers of UCOMMG and are former officers of UCG. Compl. § 11, 16 14. Lastly, Plaintiff alleges that Baker formed WesTele Utility Solutions, LLC 17 (“WesTele’’) to compete with Plaintiff. Compl. ¥ 52. 18 B The Nonresident Defendants’ Contacts with California 19 1 UCOMMG Has Insufficient Contacts with the State of 20 California 21 UCOMMG is a Nevada limited liability company. Declaration of Kenneth 22 Newbatt (“K. Newbatt Decl.”) 9 4. UCOMMG’s principal place of business is in 23 Washington. /d. UCOMMG’s sole member is Kenneth Newbatt, who is a resident 24 and citizen of the state of Washington. Jd. § 2. UCOMMG does not have any 25 offices or place of business in California. Id. 5. UCOMMG only has one 26 employee in California that does work for a New York based client and has a few 27 independent contractors that work in California. /d. 45. Otherwise, VCOMMG 28 does not have any current clients in California. Jd. 4 5. 3 Case No.: 2:21-cv-00041-ODW (AFMx) MPA ISO DEFS' MTD FP 40155792.2 Case 4{21-cv-00041-ODW-AFM Document 11-1 Filed 03/26/21 Page 12 of 34 Page ID #:337 2 Unified Has Insufficient Contacts with the State of California Unified is a dissolved corporation. /d. §] 6. Unified was incorporated in the state of Washington and Unified’s principal place of business was in the state of Washington. Jd. § 6. Unified does not have any offices or place of business, employees, or clients in California. Jd. 4 7. 3 Kenneth Newbatt Has Insufficient Contacts with the State of California Mr. Newbatt is a citizen of Washington and currently resides in Washington, where he has resided since 2008. Jd. §] 2. Mr. Newbatt has never resided in 10 California. Jd. § 3. He only comes to California once a year for a vacation.