Pulse Technology Consulting Grp. v. Skowron & Bunning

I. BACKGROUND

Pulse is an information technology services company. Pulse helps small businesses manage their computer systems. Among other things, Pulse helps clients understand their hardware and software needs, and helps them to procure and install appropriate resources. It also helps clients maintain their computer systems and networks. Pulse relies on a business model common in the information technology services industry. It provides ongoing maintenance and oversight services for a monthly fee, over a predetermined period of time. This model ensures that clients pay fixed monthly rates but requires that Pulse spend considerable time addressing their needs at the beginning of

2 the contract term, often incurring significant costs in the process. To recoup those costs, Pulse requires that clients enter into fixed term agreements. Chris Thomas owns Pulse. Pulse had a client relationship with Bunning LLP, an accounting firm with offices in Citrus Heights and elsewhere. Joseph Skowron owned another accounting firm in Sacramento. Skowron purchased Bunning LLP’s Citrus Heights office in November 2018 and named the newly combined firm Skowron & Bunning LLP. A. The Master…