California Complaint - Trade Secrets - Misappropriation by Former Employee and Prospective Purchaser - Breach of fiduciary duty

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Multi-State
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US-CMP-10051
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This is a multi-state form covering the subject matter of the title.
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  • Preview Complaint - Trade Secrets - Misappropriation by Former Employee and Prospective Purchaser - Breach of fiduciary duty
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FAQ

Available remedies for a breach of fiduciary duty can include: Lost profits. Out of pocket losses. Mental anguish damages. These must be separate from monetary losses and must be foreseeable. Exemplary damages. Also called punitive damages, these damages are awarded to punish the responsible party or parties.

Remedies for breach The most common remedies are: Injunction ? an order restraining the fiduciary from committing a breach. Rescission ? an order setting aside an impugned transaction. Account of profits ? an order stripping the relevant gain or profits from the fiduciary.

Breach of Fiduciary Duty Consequences Under California law, a plaintiff can ask for compensatory damages for all the ways a breach impacted their business or livelihood. Punitive damages are also possible. They are used to punish a defendant and send the message that such practices will not be tolerated.

Under California law, ?misappropriation? refers to the acquisition of a trade secret through improper means ? theft, bribery, misrepresentation, breach or inducement of a breach of a duty to maintain secrecy, or espionage.

The fiduciary will typically be removed from his role of trust. If financial loss occurred because of the fiduciary's breach of duty, it is possible that the fiduciary will be held accountable for those losses and money will be awarded to those who were damaged which the fiduciary would have to pay.

In California, remedies for breach of fiduciary duty encompass monetary damages, attorney fees, and court costs. Additionally, if the fiduciary acted with malice, oppression, or fraud, punitive damages may be awarded to further penalize and deter such conduct.

Under California law, employers can enjoin threatened trade secret misappropriation before actual misappropriation has occurred under certain circumstances - so departing employees must be prepared to defend against claims. CA Civ Code § 3426.2 (2021); 18 USC § 1836(b)(3)(A)(i)(I).

When a person agrees to act as a fiduciary, they promise to act in the best interest of the other party. Thus, a breach of fiduciary duty occurs when the fiduciary acts in a self-serving or self-interested manner.

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California Complaint - Trade Secrets - Misappropriation by Former Employee and Prospective Purchaser - Breach of fiduciary duty