Cho

Pneuma Int'l, Inc. v. Cho

Caution
249 Cal. Rptr. 3d 93
Court of Appeal of CaliforniaJune 24, 2019A151536California3,471 words

Opinion

Lead Opinion

Humes, J.

Appellant Pneuma International, Inc. sued a former employee, a competitor the employee went to work for, and a Pneuma investor, alleging several business torts. The investor filed a cross-complaint against Pneuma and its owner alleging they breached their investor agreement. Following a court trial, the court ruled against Pneuma on all the causes of action it asserted, with the exception of a single cause of action for trespass to chattel; and it ruled in favor of the investor on his cross-complaint. Pneuma challenges the trial court's rulings on some, but not all, causes of action. We affirm. In the published portion of our opinion, we hold that a determination a party engaged in a trespass to chattel in a business context does not, without more, establish that the party engaged in an unlawful business practice under California's Unfair Competition Law. ( Bus. & Prof. Code, § 17200, hereafter section 17200 or UCL.)

I.

FACTUAL AND PROCEDURAL BACKGROUND

Pneuma is a supplier of paper goods to distributors and wholesalers. At least as far back as 2012, the company (then known as Egpak) sold a 10-ounce "ripple soup cup" and matching lid, which was supplied by a Chinese…

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