BioCorRx v. Pellecome CA4/3

CourtCalifornia Court of Appeal
DecidedOctober 4, 2023
DocketG061435
StatusUnpublished

This text of BioCorRx v. Pellecome CA4/3 (BioCorRx v. Pellecome CA4/3) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BioCorRx v. Pellecome CA4/3, (Cal. Ct. App. 2023).

Opinion

Filed 10/4/23 BioCorRx v. Pellecome CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION THREE

BIOCORRX, INC.,

Plaintiff and Appellant, G061435

v. (Super. Ct. No. 30-2019-01101907)

PELLECOME, LLC, OPINION

Defendant and Respondent.

Appeal from a judgment of the Superior Court of Orange County, Michael J. Strickroth and Nancy E. Zeltzer, Judges. Affirmed. Request for judicial notice denied. Grant Shenon, David M. Almaraz and Gabriela Gevorkian for Plaintiff and Appellant. Esstein Becker & Green, James A. Goodman and Susan Graham for Defendant and Respondent. * * * This is an appeal following a motion for summary judgment or adjudication (MSJ) filed by defendant Pellecome, LLC, against plaintiff BioCorRx, Inc. In this case involving a dispute over a Mutual Nondisclosure and Confidentiality Agreement (NDA), the trial court granted summary adjudication on BioCorRx’s causes of action for breach of contract and breach of the implied covenant of good faith and fair dealing, finding that BioCorRx could not establish Pellecome commercially exploited or financially benefitted from proprietary information. BioCorRx argues the court misinterpreted the NDA and incorrectly determined there were no triable issues of material fact, among other things. BioCorRx also argues the court abused its discretion by awarding Pellecome attorney fees. We conclude that Pellecome met the standard for summary adjudication and that BioCorRx failed to establish a triable issue of material fact. We further find no abuse of discretion as to the attorney fee award. Accordingly, we affirm the judgment.

I FACTS1 BioCorRx is a Nevada corporation with its principal place of business in Orange County. It describes itself as “a leading-edge healthcare solutions company focused on improving the lives of those who struggle with alcohol, opioid and other addictive disorders; including eating and weight disorders.” With respect to alcohol and certain opiod addictions, BioCorRx states its “program is a proprietary medication- assisted treatment . . . cognitive behavioral therapy . . . program that utilizes a multi- pronged approach to assist in addressing the underlying physical and behavioral issues of alcohol and opioid addiction.” The medication component used naltrexone pellets. Naltrexone is an opioid antagonist approved by the FDA for the treatment of drug and

1 Our statement of facts is based on the evidence presented to the trial court. Unsupported factual statements – for example, those included in points and authorities without citation to supporting evidence – are disregarded.

2 alcohol addiction. (See https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6353110 [as of August 31, 2023], archived at: http://perma.cc/4XBN-HRAE.) In 2017, BioCorRx began to look into using its alcohol and opioid addiction treatments for what it refers to as “weight addiction.” It called this program “UnCraveRX” and claimed it invested approximately $1.1 million into the program from 2017 to 2021. Pellecome, which was founded in 2017, manufactured and sold pellet insertion devices, which were originally used to insert hormone replacement therapy pellets. Melissa Vinci-Rainis, Pellecome’s CEO, had come across BioCorRx in the course of researching naltrexone, and she had noticed that BioCorRx was using 10 cc syringes to insert 10 mm diameter pellets, which she believed would cause a patient considerable discomfort due to the syringe’s size. In August 2018, Vinci-Rainis contacted BioCorRx’s then-CEO, Brady Granier, to discuss the use of Pellecome’s insertion device in BioCorRx’s alcohol and opiate addiction programs. At this point in time, the parties had not discussed weight loss programs. On September 10, the parties executed an NDA. In relevant part, the NDA stated: “Confidentiality. ‘Confidential Information’ shall mean and include, without limitation, any and all information furnished by the Disclosing Party to the Receiving Party in tangible, visible, electronic or verbal form or by observation or by any other means, including, but not limited to, any trade secret or proprietary information, legal documents, research documents, patent applications, business plans, protocols, processes, samples, formulae, prospective and current products, clinical data and analyses, test results, toxicology and pharmacology information, study procedures and manuals, case report forms and their content, statistical reports, project management and staffing, manufacturing processes, financial data, forecasts and projections, proprietary software and database structures, research, ‘know-how,’ technology under development, marketing information, regardless of whether such disclosures are marked or otherwise designated

3 as ‘Confidential’ and including (but not limited to information disclosed between the parties prior to the date of this Agreement; and the terms and conditions of this Agreement, all proposals and requests for proposals (including those submitted to the Receiving Party prior to the date of this Agreement and marked as Confidential at the time of delivery), and the existence of the discussions between the Parties to which this Agreement pertains. [¶] The Parties agree that the Information will be kept strictly confidential and will not be used by either Party directly or indirectly for any purpose or in any business other than for the sole purpose of evaluating the Transaction. The Parties agree to transmit the Information only to those representatives who need to know the Information for the purpose of evaluating the Transaction, who are informed of the confidential nature of the Information and who specifically agree to be bound by the terms of this Agreement. The Parties will be responsible for any breach of this Agreement by their affiliates or representatives.” The NDA also stated the parties agreed not to knowingly make use of any “‘inside information’” for purposes other than completing the transaction between them, or to disclose any of the information. Other portions of the NDA will be discussed as relevant. After the NDA was signed, Pellecome designed a larger insertion device for use with the naltrexone pellets. In September 2018, Pellecome’s founder and medical director traveled to BioCorRx’s California office to perform a demonstration. According to Vinci-Rainis, using a Pellecome device, BioCorRx could insert smaller pellets using the same dose of naltrexone. Many of her communications, after the NDA was signed, were with Lourdes Felix, BioCorRx’s chief operating officer. Pellecome became aware that BioCorRx was developing a weight loss program, and Vinci-Rainis and Felix had ongoing discussions about it. Sometime in the first half of 2019, Vinci-Rainis learned BioCorRx intended to call the program UnCraveRx.

4 In approximately March 2019, Felix told Vinci-Rainis that BioCorRx needed a medical director for the weight loss program. Vinci-Rainis introduced Felix to Dr. Kenneth Orbeck, then medical director at Pellecome, who was an expert on insertion devices. Orbeck subsequently became the UnCraveRx program’s medical director. Vinci-Rainis and Felix continued to discuss purchase quantities and the logistics and cost of Pellecome’s insertion device. In June, Vinci-Rainis sent Felix a proposed term sheet. The parties met on June 21 to attempt to negotiate an agreement, but the attempt failed.

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Bluebook (online)
BioCorRx v. Pellecome CA4/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/biocorrx-v-pellecome-ca43-calctapp-2023.