First Ascent Ventures Inc. v. DLC Dermacare LLC

MEMORANDUM **

DLC Dermacare, LLC (“Dermacare”) argues that the district court abused its discretion by finding that Dermacare was barred from enforcing non-competition clauses against First Ascent Ventures, Inc. and First Ascent Ventures Lone Tree, Inc. (collectively “First Ascent”) because Der-macare had “unclean hands.” “While we review the district court’s decision to deny permanent injunctive relief for abuse of discretion, we review de novo any legal conclusions underlying that decision.” Citizens for Clean Government v. City of San Diego, 474 F.3d 647, 650 (9th Cir.2007).

We find that the district court did not err in determining that Dermacare had unclean hands. The doctrine of unclean hands “closes the doors of a court of equity to one tainted with inequitableness or bad faith relative to the matter in which he seeks relief.” Precision Instrument Manufacturing Co. v. Automotive Maintenance Machinery Co., 324 U.S. 806, 814 , 65 S.Ct. 993 , 89 L.Ed. 1381 (1945). “The application of the ‘clean hands’ doctrine rests in the sound discretion of the trial court.” Manning v. Reilly, 2 Ariz.App. 310 , 408 P.2d 414, 418 (1965). In order to apply the doctrine of unclean hands, the…