Gemini Aluminum Corp. v. California Custom Shapes, Inc.

Plaintiff Gemini Aluminum Corporation (Gemini) appeals a judgment in favor of defendant California Custom Shapes, Inc. (CCS), entered after a jury rejected Gemini’s claim that CCS intentionally interfered with its prospective economic advantage. Gemini contends the court erred by instructing the jury that it had the burden of showing CCS’s wrongful conduct twice, first to establish a prima facie case and again to defeat CCS’s affirmative defense of the privilege of competition. Gemini also contends the court erred by defining “wrongful” for purposes of defeating the privilege as conduct constituting an independently actionable tort, the misappropriation of trade secrets. We conclude there was no prejudicial instructional error, and accordingly affirm the judgment.

Gemini also appeals a postjudgment order awarding CCS $160,200 in attorney fees under Civil Code section 3426.4 for the “bad faith” prosecution of a claim for misappropriation of trade secrets. Gemini contends the award was improper because its case was not objectively “frivolous,” a standard applicable to sanctions under Code of Civil Procedure section 128.5, and there was no evidence of its subjective bad…