Case 2:17-cv-01372-WBS-CKD Document 20 Filed 10/17/17 Page 1 of 18
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`Jacob Song (SBN 265371)
`KUTAK ROCK LLP
`5 Park Plaza, Suite 1500
`Irvine, CA 92614
`Telephone: (949) 417-0999
`Facsimile: (949)-417-5394
`Email:
`Jacob.Song@KutakRock.com
`
`Sara Weilert Gillette, Pro Hac Vice
`KUTAK ROCK LLP
`2300 Main St., Ste. 800
`Kansas City, MO 64108-2416
`Telephone: (816) 960-0090
`Facsimile: (816) 960-0041
`Email: Sara.Gillette@KutakRock.com
`
`Attorneys for Plaintiff, GUTTERGLOVE, INC.
`UNITED STATES DISTRICT COURT
`EASTERN DISTRICT OF CALIFORNIA
`GUTTERGLOVE, INC., a California
`Case No. 2:17-CV-01372-WBS-CKD
`Corporation,
`Judge: Hon. William B. Shubb
`Courtroom: 5, 14th Floor
`
`Plaintiff,
`
`v.
`WILLIAM LASELL, an individual;
`AMERICAN DIE and
`ROLLFORMING, INC., a California
`corporation; and ARTESIAN HOME
`PRODUCTS, a California corporation,
`dba VALOR GUTTER GUARD,
`Defendants.
`
`PLAINTIFF GUTTERGLOVE, INC.’S
`SECOND AMENDED COMPLAINT
`
`JURY TRIAL DEMAND
`
`COMES NOW Plaintiff Gutterglove, Inc. (“Gutterglove”) and brings this
`Second Amended Complaint for injunctive relief and damages against Defendants
`William Lasell (“Lasell”), American Die and Rollforming, Inc. (“ADR”) and
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`Artesian Home Products d/b/a Valor Gutter Guard (“Valor”) (collectively,
`“Defendants”); and alleges as follows:
`I.
`NATURE OF THIS ACTION
`1.
`This is an action for injunctive relief and damages arising out of
`Defendants’ unlawful business practices, said practices including Defendants’
`disclosure, receipt, and/or use of Gutterglove’s confidential business and technical
`information, as well as for associated breaches of contractual and fiduciary duties by
`Defendant William Lasell. Defendants do not dispute their unlawful business
`practices. See, e.g., Defendant’s Motion to Dismiss, Dkt. No. 8, page 9 (“Therefore,
`the Valor Gutter Guard Product is merely part of the continuing misappropriation of
`the S-mesh CI, which the Complaint alleges started in 2013, prior to the statute of
`limitations.”); Id. at 10 (“Once again, these ‘uses’ of making, selling, and advertising
`are found to have been continuing acts which trace back beyond the expiration of the
`statute of limitations.”); Id. at 11 (“These acts should also be seen as more continuing
`misappropriation dating back to 2013.”).
`II.
`INTRODUCTION
`2.
`Gutterglove was founded as Commercial Gutter in 1996 by Robert
`Lenney (“Lenney”) and was incorporated as Commercial Gutter, Inc. (“CGI”) in
`2000.
`
`CGI changed its name to Gutterglove, Inc. on or about December 16,
`3.
`2011 by amendment to its Articles of Incorporation. Lenney is and has been at all
`relevant times the owner of Gutterglove.
`4.
`From the late 1990’s to early 2000’s, Gutterglove recognized the need
`for a better gutter protection system and developed the Gutterglove Pro.
`5.
`In 2007, the first U.S. Patent was awarded to Gutterglove for the
`Gutterglove Pro.
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`Gutterglove continued to lead innovation in the gutter protection space
`6.
`and developed the Gutterglove Ultra, IceBreaker, and LeafBlaster products, among
`others.
`By 2010, there were nearly 200 dealers buying Gutterglove products.
`7.
`In 2010, Gutterglove received the distinction of Highest Rated gutter
`8.
`guard by Consumer Reports Magazine.
`9.
`In 2011, Gutterglove again received the distinction of Highest Rated
`gutter guard by Consumer Reports Magazine, and received a second patent for the
`Gutterglove Pro and a patent for the IceBreaker.
`10.
`In 2011, Gutterglove began transitioning manufacturing from China to
`America.
`11. By 2016, Gutterglove had received numerous patents on its gutter guard
`technology and had sold over ten million linear feet of gutter guards.
`12.
`In 2006, Lasell bought a Gutterglove dealership and sold Gutterglove
`products within Northern California.
`13. On or around September 2009, Lasell was hired by Gutterglove as a
`General Manager, Sales manager, and Business Manager both in the Fremont and
`Rocklin offices of Gutterglove.
`14.
`Lasell was elected to the Board of Directors for Gutterglove on
`November 19, 2010.
`15. During Lasell’s employment at Gutterglove, he owed fiduciary duties to
`Gutterglove as an Officer and/or as a Director of Gutterglove.
`16. On October 18, 2010, Lasell executed a non-disclosure agreement with
`Gutterglove that required him to not disclose Gutterglove confidential information
`and that made Gutterglove the owner of any modifications Lasell made to that
`confidential information.
`17.
`Lasell’s fiduciary duties to Gutterglove lasted at least through August,
`
`2013.
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`18. While employed by Gutterglove, Lasell received and/or developed
`confidential and trade secreted information regarding Gutterglove’s business and
`technology including client lists, reseller purchasing agents, financial and sales
`information, gutter guard market industry data, and gutter guard technology
`including Gutterglove’s proprietary manufacturing
`technology
`(hereafter
`“Gutterglove CI”).
`19. On information and belief, before August 6, 2013, Lasell conferred with
`John Adams and one or more employees, owners, and/or affiliates of ADR and Valor,
`including Slate Bryer and Christopher Tatasciore, for the purpose of starting a new
`company to be called “Valor Gutter Guard” (i.e., Defendant Valor).
`20.
`John Adams is a former employee of Guttergove.
`21. On information and belief, ADR and Valor knew that Lasell was an
`Officer and/or Director of Gutterglove.
`22. On information and belief, Valor was formed for the purpose of
`competing with Gutterglove in the gutter guard industry using Gutterglove CI.
`23. On information and belief, Lasell violated his NDA and disclosed
`Gutterglove CI to ADR and Valor.
`24. On information and belief, Lasell breached his fiduciary duties to
`Gutterglove by disclosing Gutterglove CI to Defendants.
`25. On information and belief, ADR and Valor knew that Lasell breached
`his fiduciary duties to Gutterglove by disclosing Gutterglove CI to ADR and Valor.
`26. On information and belief, ADR and Valor knowingly induced Lasell to
`breach his fiduciary duties to Gutterglove by disclosing Gutterglove CI to ADR and
`Valor.
`
`27. On information and belief, ADR and Valor knew that Lasell breached
`his non-disclosure agreement with Gutterglove by disclosing Gutterglove CI to ADR
`and Valor.
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`28. On information and belief, ADR and Valor knowingly induced Lasell to
`breach his non-disclosure agreement with Gutterglove by disclosing Gutterglove CI
`to ADR and Valor.
`29. On information and belief, ADR and Valor acquired Gutterglove CI
`from Lasell and knew or had reason to know that said Gutterglove CI was acquired
`by improper means.
`30. On information and belief, ADR and Valor used Gutterglove CI without
`the consent of Gutterglove, and used improper means to acquire said Gutterglove CI.
`31. On information and belief, Defendants continue to use Gutterglove CI
`to unlawfully compete with Gutterglove, to unjustly enrich themselves, and to sell
`gutter guards that incorporate misappropriated Gutterglove CI.
`32. On information and belief, Lasell breached his fiduciary duties to
`Gutterglove by usurping corporate opportunities from Gutterglove in the gutter guard
`industry, for example, by using misappropriated Gutterglove CI for the benefit of
`ADR and Valor.
`III. PARTIES, JURISDICTION, AND VENUE
`33.
`Plaintiff Gutterglove, Inc. (“Plaintiff” or “Gutterglove”) is a California
`corporation that maintains its principal place of business in Roseville, California.
`34. Defendant American Die and Rollforming, Inc. (“ADR”) is a California
`corporation that maintains its principal place of business in Loomis, California.
`35. Defendant Artesian Home Products d/b/a Valor Gutter Guard (“Valor”)
`is a California company that maintains its principal place of business in Loomis,
`California.
`36. On information and belief, there is a corporate relationship between
`ADR and Valor. The extent of that relationship is unknown to Gutterglove at this
`time.
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`This Court has personal jurisdiction over ADR because ADR maintains
`37.
`its principal place of business in California and because it committed, in substantial
`part, the underlying acts alleged herein in California.
`38.
`This Court has personal jurisdiction over Valor because Valor maintains
`its principal place of business in California and because it committed, in substantial
`part, the underlying acts alleged herein in California.
`39. On information and belief, Defendant William Lasell is a resident of
`Loomis, California and had and/or continues to have a relationship with Valor.
`40.
`This Court has personal jurisdiction over Lasell because, on information
`and belief, Lasell is a resident of California and because he committed, in substantial
`part, the underlying acts alleged herein in California.
`41.
`Subject matter jurisdiction is proper for the patent claim in this Court
`pursuant to 28 U.S.C. § 1331 and § 1338(a).
`42.
`Plaintiff further invokes this Court’s supplemental jurisdiction, pursuant
`to 28 U.S.C. § 1367(a), over the breach of NDA claim, the breach of fiduciary duty
`claim, the Business and Professions Code § 17200 claim, and any and all state
`constitutional and state law claims, because they are so related to the claims within
`the original jurisdiction of this Court that they form part of the same case or
`controversy.
`43. Venue before this Court is proper pursuant to 28 U.S.C. § 1391(b)(1)
`because all Defendants reside in this judicial district and are residents of California.
`IV. ADDITIONAL FACTUAL BACKGROUND
`44. On information and belief, Lasell, in active concert and participation
`with the other Defendants, misappropriated Gutterglove CI to solicit and secure
`business for Defendants from Gutterglove customers.
`45. On information and belief, ADR and Valor, in active concert and
`participation with Lasell, knowingly received, used, and continue to use
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`misappropriated Gutterglove CI to solicit and secure business for Defendants from
`Gutterglove customers.
`46. On information and belief, Defendants ADR and Valor, in active concert
`and participation with Lasell, knowingly received, used, and continue to use
`misappropriated Gutterglove CI for the purpose of developing, making, selling, and
`marketing gutter guard products for Defendants.
`47. On information and belief, Lasell, in active concert and participation
`with the other Defendants, breached his fiduciary duties to Gutterglove by disclosing
`and using Gutterglove CI to solicit and secure business for Defendants from
`Gutterglove customers.
`48. On information and belief, Lasell, in active concert and participation
`with the other Defendants, breached his fiduciary duties to Gutterglove by using
`Gutterglove CI for the purpose of developing, making, selling, and marketing gutter
`guard products for Defendants.
`49. On November 19, 2010, Lasell became a Director of CGI (now
`Gutterglove).
`50. On October 18, 2010, Lasell executed a non-disclosure agreement
`(“Lasell NDA”) with CGI (now Gutterglove).
`51.
`The Lasell NDA contains provisions governing the non-disclosure of
`Gutterglove CI, including in relevant part:
`the
`1)
`The Recipient shall hold and maintain
`confidential information in strictest confidence and trust
`for the sole and exclusive benefit of CGI.
`2)
`The Recipient shall not, without the prior written
`approval of CGI, use for its own benefit, publish or
`otherwise disclose to others, or permit the use by others for
`their benefit or to the detriment of CGI, any of the
`confidential information.
`
`52. On information and belief, Slate Bryer is and has been an employee
`and/or owner of ADR and Valor.
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`53. On information and belief, Slate Bryer signed a non-disclosure
`agreement with provisions identical to those in the Lasell NDA, shown above, on
`August 31, 2012 on behalf of ADR (the “ADR NDA”).
`54. ADR received Gutterglove CI under the ADR NDA for the purpose of
`making proprietary tooling to be used for manufacturing Gutterglove gutter guards.
`55.
`John Q. Adams, who on information and belief was an employee and/or
`owner of ADR and/or Valor, also signed a non-disclosure agreement with provisions
`identical to those in the Lasell NDA, shown above, on August 1, 2011 (the “Adams
`NDA”).
`The Lasell NDA contains provisions governing ownership of
`56.
`confidential information, including in relevant part:
`information,
`8)
`Upon
`receiving
`the confidential
`Recipient may conceive of
`improvements and/or
`modifications to the confidential information. Recipient
`agrees to disclose any such conceptions only to CGI and
`not use any such conceptions for Recipient’s own benefit.
`Furthermore, Recipient agrees to assign to CGI any rights
`Recipient may have to any such conceptions and that if any
`such conceptions are made the subject of patent, trademark
`or copyright applications, that Recipient will execute any
`necessary documents to allow any such applications to be
`made. To the extent any such conceptions or other related
`works of authorship are protectable under copyright laws,
`Recipient acknowledges that the conceptions shall be
`considered works made for hire. If, for any reason, the
`work shall not be eligible to be a work made for hire,
`Recipient agrees to assign all of Recipient’s copyright
`rights in the works to CGI.
`
`The ADR NDA contains a provision identical to the one shown above
`57.
`regarding Gutterglove’s ownership of improvements to confidential information.
`58.
`The Adams NDA contains a provision identical to the one shown above
`regarding Gutterglove’s ownership of improvements to confidential information.
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`Lasell was terminated as an employee of Gutterglove on or about
`59.
`August 6, 2013. Thereafter Gutterglove sent him a letter reminding him of the Lasell
`NDA.
`
`60. On information and belief, before August 6, 2013, Lasell met with
`representatives of ADR including Bryer and Adams for the purpose of forming Valor.
`61. On information and belief, before August 6, 2013, Lasell agreed to
`design a sales flyer for Valor.
`62. On information and belief, before August 6, 2013, Lasell agreed to
`prepare a sales map and client list for Valor.
`63. On information and belief, before August 6, 2013, Lasell used
`Gutterglove CI for the purpose of preparing a sales map and client list for Valor.
`64. On information and belief, before August 6, 2013, Lasell agreed to
`prepare a warranty statement for Valor.
`65. On information and belief, before August 6, 2013, Lasell agreed to
`design a website for Valor.
`66. On information and belief, before August 6, 2013, Lasell agreed to
`design an order form for Valor.
`67. On information and belief, before August 6, 2013, Lasell agreed to
`design and/or approve a logo for Valor.
`68. On information and belief, before August 6, 2013, Lasell agreed to
`develop a sales plan for Valor using the Gutterglove CI.
`69. On information and belief, before August 6, 2013, Lasell agreed to help
`develop a prototype gutter guard for Valor identified as prototype “FLOW.”
`70. On information and belief, before August 6, 2013, Lasell agreed to help
`develop a prototype gutter guard for Valor identified as prototype “VALOR”
`(hereinafter the “FLOW” and “VALOR” prototypes are referred to as the
`“Prototypes”).
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`71. On information and belief, Defendants used Gutterglove CI to develop
`the Prototypes.
`72. On information and belief, Defendants developed product specifications
`for the Prototypes using Gutterglove CI.
`73. On information and belief, before August 6, 2013, Lasell agreed to help
`Defendants prepare a contract between the owners of Valor.
`74. On information and belief, before August 6, 2013, Lasell agreed to help
`Defendants develop a business plan for Valor using Gutterglove CI.
`75. On information and belief, before August 6, 2013, Lasell, agreed to help
`Defendants prepare agreement contracts for Valor using Gutterglove CI.
`76. On information and belief, before August 6, 2013, Lasell, agreed to help
`Defendants prepare utility and design patent application for the Prototypes.
`77. On information and belief, Lasell did help Defendants prepare patent
`application for the Prototypes using Gutterglove CI.
`78. On information and belief, Lasell and/or Lenney conceived of a gutter
`guard with wire mesh manipulated into a pattern (hereinafter the “mesh idea”).
`79. On information and belief, Lasell and/or Lenney conceived of the mesh
`idea in 2010.
`80. On information and belief, Lenney had, at all relevant times, an
`obligation to assign the mesh idea to Gutterglove.
`81. On information and belief, Lasell had, at all relevant times, an obligation
`to assign the mesh idea to Gutterglove at least in view of the terms of the Lasell NDA
`and/or as a result of the fiduciary duties he owed to Gutterglove.
`82. On information and belief, the mesh idea was and is Gutterglove CI.
`83. On information and belief, Lasell disclosed the mesh idea to ADR and
`Valor in violation of the Lasell NDA and in breach of his fiduciary duties to
`Gutterglove.
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`84. On information and belief, Defendants used the mesh idea to prepare
`U.S. Patent Application Serial Number 61/867,319, which was filed with the U.S.
`Patent and Trademark Office on August 19, 2013.
`85. On information and belief, Defendants used the mesh idea to prepare
`U.S. Patent Application Serial Number 14/461,447, which was filed with the U.S.
`Patent and Trademark Office on August 18, 2014.
`86. U.S. Patent Application Serial Number 14/461,447 issued as U.S. Patent
`Number 9,284,735 (the “‘735 Patent”) on March 15, 2016.
`87. On information and belief, the ‘735 Patent is owned by Defendant ADR.
`88. On information and belief, the ‘735 Patent is owned by Defendant
`Valor.
`89. On information and belief, the ‘735 Patent is owned by Chris Tatasciore.
`90. On information and belief, the ‘735 Patent is owned by Slate Bryer.
`91. On information and belief, the ‘735 Patent is owned by Larry Dumm.
`92. On information and belief, Defendant ADR has rights to the ‘735 Patent.
`93. On information and belief, Defendant Valor has rights to the ‘735
`Patent.
`94. On information and belief, Chris Tatasciore has rights to the ‘735 Patent.
`95. On information and belief, Slate Bryer has rights to the ‘735 Patent.
`96. On information and belief, Larry Dumm has rights to the ‘735 Patent.
`97. On information and belief, the mesh idea is embodied in Defendant
`Valor’s Valor GutterGuard product.
`98. On information and belief, the Valor GutterGuard is currently being sold
`by Valor.
`99. On information and belief, Valor’s making, selling, and advertising of
`the Valor GutterGuard represents one or more uses of misappropriated Gutterglove
`CI.
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`COUNT I
`CORRECTION OF INVENTORSHIP—35 U.S.C. § 256
`100. Gutterglove incorporates by reference all allegations in the preceding
`and subsequent paragraphs of this Complaint as if fully set forth herein.
`101. The face of the ‘735 Patent lists Slate Bryer, Lawrence Dumm, and
`Christopher Tatasciore as alleged co-inventors of the subject matter claimed by the
`‘735 Patent.
`102. On information and belief, the inventions claimed by the ‘735 Patent
`were co-invented by Lasell and/or Lenney.
`103. On information and belief, Lasell and/or Lenney contributed to the
`conception of at least one claim of the ‘735 Patent including, but not limited, to
`contribution of the mesh idea.
`104. The inventorship of the ‘735 Patent is incorrect because Lasell and/or
`Lenney are not listed as co-inventors on the ‘735 Patent.
`105. Gutterglove has standing to request a correction of inventorship of the
`‘735 Patent in dispute, because Lasell and Lenney were under an obligation of
`assignment at all relevant times during conception and reduction to practice of the
`claimed invention of the ‘735 Patent.
`106. All parties concerned with the inventorship of the ‘735 Patent in dispute
`for which correction of inventorship is sought have been put on notice or will be put
`on notice pursuant to the filing and service of this First Amended Complaint.
`COUNT II
`BREACH OF THE NON-DISCLOSURE AGREEMENT BY LASELL
`107. Gutterglove incorporates by reference all allegations in the preceding
`and subsequent paragraphs of this Complaint as if fully set forth herein.
`108. Pursuant to the terms of the Lasell NDA, Lasell “shall hold and maintain
`the confidential information in strictest confidence and in trust for the sole and
`exclusive benefit of [Gutterglove].”
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`GUTTERGLOVE, INC.’S SECOND AMENDED COMPLAINT
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`Ex. 2037 - 012
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`Case 2:17-cv-01372-WBS-CKD Document 20 Filed 10/17/17 Page 13 of 18
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`109. Pursuant to the terms of the Lasell NDA, Lasell “shall not, without the
`prior written approval of [Gutterglove], use for its own benefit, publish or otherwise
`disclose to others, or permit the use by others for their benefit or to the detriment of
`[Gutterglove], any of the confidential information.”
`110. On information and belief, Lasell breached the Lasell NDA by
`disclosing, using and continuing to use Gutterglove CI, including but not limited to
`disclosures to and use by ADR and Valor.
`111. As a direct and proximate result of the foregoing, Gutterglove has
`suffered damages in an amount to be determined at trial.
`112. Moreover, Gutterglove has suffered irreparable harm for which there is
`no adequate remedy at law, and will continue to suffer irreparable harm unless this
`Court enjoins Lasell from further disclosure or use its trade secrets, and requires the
`expungement of all Gutterglove confidential information from Defendants’
`possession.
`
`COUNT III
`BREACH OF FIDUCIARY DUTIES BY LASELL
`113. Gutterglove incorporates by reference all allegations in the preceding
`and subsequent paragraphs of this Complaint as if fully set forth herein.
`114. As an Officer and Director of Gutterglove, Lasell owed fiduciary duties
`to Gutterglove, including the Duty of Loyalty.
`115. On information and belief, Lasell breached his fiduciary duties by, while
`still an Officer and Director of Gutterglove, owning as an individual an interest in
`Valor, a company formed to compete with Gutterglove in the gutter guard industry.
`116. On information and belief, Lasell breached his fiduciary duties by, while
`still an Officer and Director of Gutterglove, sharing Gutterglove CI with ADR and
`Valor.
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`GUTTERGLOVE, INC.’S SECOND AMENDED COMPLAINT
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`ATTORNEYS AT LAW
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`Ex. 2037 - 013
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`IPR2018-00030
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`Case 2:17-cv-01372-WBS-CKD Document 20 Filed 10/17/17 Page 14 of 18
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`117. On information and belief, Lasell breached his fiduciary duties by, while
`still an Officer and Director of Gutterglove, sharing improvements to Gutterglove CI
`with ADR and Valor.
`118. Lasell’s breaches of his fiduciary duties are contrary to the interests of
`Gutterglove and, as a direct and proximate result of the foregoing, Gutterglove has
`suffered damages in an amount to be determined at trial.
`COUNT IV
`VIOLATION OF BUS. & PROF. CODE § 17200, et seq. UNFAIR
`COMPETITION—ALL DEFENDANTS
`119. Gutterglove incorporates by reference all allegations in the preceding
`and subsequent paragraphs of this Complaint as if fully set forth herein.
`120. California Business and Professions Code § 17200 prohibits “any
`unlawful, unfair or fraudulent business act or practice.” For the reasons described
`above and herein, Defendants have engaged in unlawful, unfair, or fraudulent
`business acts or practices in violation of California Business and Professions Code
`§§ 17200, et seq.
`121. At all relevant times, the Gutterglove CI described herein is information
`not generally known, which derives independent economic value from the fact that it
`is maintained as a trade secret, and is subject to reasonable efforts to maintain its
`secrecy.
`122. Gutterglove CI is and has been the subject of efforts that are reasonable
`under the circumstances to maintain their secrecy. Those efforts include, but are not
`limited to, contractual duties under NDAs and the fiduciary and other duties owed by
`the former Officer and Director Lasell.
`123. On information and belief, Lasell acquired knowledge of Gutterglove
`CI in confidence and as a result of his contractual, confidential, and fiduciary
`relationship with, and his promises to and agreements with, Gutterglove.
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`Ex. 2037 - 014
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`Case 2:17-cv-01372-WBS-CKD Document 20 Filed 10/17/17 Page 15 of 18
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`124. On information and belief, ADR and Valor acquired knowledge of
`Gutterglove CI from Lasell in violation of and as a result of their contractual and
`confidential relationship with, and their promises to and agreements with,
`Gutterglove.
`125. On information and belief, ADR and Valor acquired knowledge of
`Gutterglove CI by improper means by inducing Lasell to violate his obligations to
`Gutterglove, knowing that Lasell was bound by the NDA and bound by his duties
`and obligations as an Officer and Director of Gutterglove.
`126. On information and belief, Gutterglove CI has been misappropriated by
`Defendants by improper disclosure, receipt, and use. Gutterglove CI continues to be
`unlawfully used for the benefit of Defendants.
`127. On information and belief, Defendants have and will continue to
`unlawfully misappropriate Gutterglove CI in violation of the Defendants’ contractual
`and/or fiduciary duties to maintain their secrecy, resulting in continuing harm to
`Gutterglove. Gutterglove CI has and will continue to assist Defendants in their
`positions as competitors of Gutterglove, as they will be making decisions and sales
`unlawfully relying on and/or unlawfully using information involving Gutterglove CI.
`128. On information and belief, Defendants have and will continue to
`misappropriate and/or disclose and use Gutterglove CI by, among other acts and
`omissions, engaging in the conduct alleged herein, including:
`a.
`disclosing and/or using Gutterglove CI without Gutterglove’s
`express or implied consent after acquiring knowledge of such trade
`secrets by Defendants, and inducing Lasell to breach his contractual and
`fiduciary duties to Gutterglove to maintain the secrecy thereof;
`b.
`disclosing and/or using Gutterglove CI without Gutterglove’s
`express or implied consent when, at the time of their disclosure and use,
`Defendants knew or had reason to know that their knowledge of
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`GUTTERGLOVE, INC.’S SECOND AMENDED COMPLAINT
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`Ex. 2037 - 015
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`IPR2018-00030
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`Case 2:17-cv-01372-WBS-CKD Document 20 Filed 10/17/17 Page 16 of 18
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`Gutterglove CI was derived from Lasell’s breach of his contractual and
`fiduciary duties to Gutterglove to maintain the secrecy thereof; and
`c.
`disclosing and/or using the Gutterglove CI without Gutterglove’s
`express or implied consent when, at the time of their disclosure and use,
`Defendants knew or had reason to know that Lasell owed contractual
`and fiduciary duties to Gutterglove to maintain its secrecy thereof.
`129. On information and belief, Defendants have misappropriated and
`continue to misappropriate Gutterglove CI in the furtherance of their business
`operations, which constitutes unlawful, unfair, and/or fraudulent business acts or
`practices while in direct competition with Gutterglove.
`130. As a direct and proximate result of the foregoing, Gutterglove has
`suffered damages in an amount to be determined at trial.
`131. Defendants engaged in unlawful business practices by misappropriating
`Gutterglove CI by improper means as described herein.
`132. Defendants’ various and numerous acts of misappropriation of
`Gutterglove CI constitute a business practice of Defendants.
`133. Defendants’ unlawful business practices have caused injury to
`Gutterglove’s business and property in the form of lost customers, lost business
`opportunities, lost revenues, and lost profits.
`134. Defendants have engaged in unlawful, unfair, and/or fraudulent
`business acts entitling Gutterglove to judgment and equitable relief as set forth in the
`Prayer for Relief.
`135. Pursuant to Business and Professions Code § 17203, Gutterglove seeks
`an order requiring Defendants to immediately cease such acts of unlawful, unfair,
`and fraudulent business practices. Gutterglove has suffered irreparable harm for
`which there is no adequate remedy at law, and will continue to suffer irreparable
`harm unless this Court enjoins Defendants from further misappropriating Gutterglove
`CI.
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`GUTTERGLOVE, INC.’S SECOND AMENDED COMPLAINT
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`ATTORNEYS AT LAW
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`Ex. 2037 - 016
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`IPR2018-00030
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`Case 2:17-cv-01372-WBS-CKD Document 20 Filed 10/17/17 Page 17 of 18
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`136. Gutterglove further seeks an award of their costs and reasonable
`attorneys’ fees incurred.
`
`PRAYER FOR RELIEF
`Gutterglove respectfully requests the following relief:
`a.
`Judgment that Lasell and/or Lenney are original and/or joint inventors
`of the ‘735 Patent;
`b.
`Issuance of an order pursuant to 35 U.S.C