Route Four v. Hawthorne Hydroponics CA4/3

FACTS AND PROCEDURAL HISTORY

I.

THE 2018 AGREEMENT

Route Four initially filed this lawsuit in 2020 against several defendants that did not include Hawthorne defendants. Hawthorne defendants were added to this lawsuit in 2023. We begin by describing the origins of this lawsuit, which trace back Route Four’s purchase of a hydroponics business in 2018. We then discuss Hawthorne Hydroponics, LLC’s (Hawthorne Hydroponics) purchase of a lighting company in 2021, which led to Hawthorne defendants’ inclusion in this lawsuit. This lawsuit traces back to a 2018 sale involving Route Four’s purchase of certain assets of Hydroponics, Inc., a company founded by Brandon Burkhart in 2012. Burkhart is a defendant in the underlying case but is not a party to this appeal. Hydroponics, Inc. started as a retail business with two stores in Riverside and San Bernardino specializing in hydroponic equipment and products. It initially attempted to sell products online but ceased having an online presence in 2018. In 2017, Burkhart founded Luxx Lighting, Inc. and Athena Products, Inc. (Athena) with Ivan Van Ortwick. Athena manufactured and distributed plant nutrients for use with hydroponic gardening.…