Inhance Digital Corporation v. Maziar Farzam, et al., 19STCV13924

Tentative decision on (1) motion to seal: denied; (2) application for preliminary injunction: granted in part

Cross-Complainant Maziar Farzam (“Farzam”) applies for a preliminary injunction against Cross-Defendants Penn Arthur (“Arthur”) and Ari Kaplan (“Kaplan”), as well as Inhance Digital Corporation (“Inhance” or “the Company”) as a nominal Cross-Defendant.

The court has read and considered the moving papers, opposition,[1] and reply,[2] and renders the following tentative decision.

A. Statement of the Case

1. Complaint

Plaintiff and Cross-Defendant Inhance filed its Complaint on April 22, 2019, alleging causes of action for (1) breach of fiduciary duties, (2) breach of contract, (3) interference with prospective economic relations and, (4) accounting. The Complaint alleges in pertinent part as follows.

After years of working together, the founders of Inhance, Arthur and Farzam are no longer able to do business