Masimo Corp. v. Sotera Wireless, Inc. (In re Sotera Wireless, Inc.)

Masimo Corporation ("Masimo") appeals under 28 U.S.C. § 158 (a)(1) from a July 18, 2017 memorandum of decision and order of the United States Bankruptcy Court for the Southern District of California, adjudicating Masimo's claims against Sotera Wireless, Inc. ("Sotera") under the California Uniform Trade Secret Act ("CUTSA"). For the reasons discussed below, the Court AFFIRMS.

I. BACKGROUND

On May 10, 2013, Masimo filed a lawsuit in Orange County Superior Court against Sotera for, among other causes of action, trade secret misappropriation under CUTSA. (ER 77). Masimo alleged that two of its former employees, James Welch and David Hunt, took trade secrets from Masimo and that Sotera then used those trade secrets. Id. On September 30, 2016, before the state court trial had commenced, Sotera filed for Chapter 11 bankruptcy. (ER 78). As part of the bankruptcy proceedings, Masimo filed a formal proof of claim asserting at least $15,500,000 in damages, which was in part, based on misappropriation of trade secrets. (ER 84). Sotera filed an objection to the claim. Id.

On April 14, 2017, the Bankruptcy Court announced its determinations on Masimo's claim and Sotera's objection through…