C&A Scientific Company, Inc. v. Chenhua Yu, a/k/a Kenny Yu

Court of Appeals of Virginia·Decided August 18, 2026·No. 0981254·Published

Opinion

COURT OF APPEALS OF VIRGINIA Record No. 0981-25-4

C&A SCIENTIFIC COMPANY, INC., ET AL.

v.

CHENHUA YU, A/K/A

KENNY YU, ET AL.

Present: Judges Raphael, Lorish and Frucci Argued at Arlington, Virginia Opinion Issued August 18, 2026

FROM THE CIRCUIT COURT OF FAIRFAX COUNTY David A. Oblon, Judge

James J. O’Keeffe, IV (Matthew R. McGuire; Arktouros, PLLC, on briefs), for appellants. Andrew E. Suddarth (Kevin S. Jaros; PJI Law, PLC, on brief), for appellees.

PUBLISHED OPINION BY

JUDGE STUART A. RAPHAEL

This business dispute arises between C&A Scientific Company, Inc. and its principal, Sam Xiang, on the one hand, and CoreAmp, Inc. and its principal, Kenny Yu, on the other. After Yu left his job at C&A and, through CoreAmp, solicited business from one of C&A’s clients, C&A’s lawyer warned the client that Yu was violating various contractual obligations to C&A. Yu and CoreAmp sued C&A and Xiang for, among other things, tortious interference with business expectancy. C&A and Xiang counterclaimed, alleging that Yu had breached his noncompete and non-solicitation obligations and had disclosed C&A’s trade secrets.

At the jury trial that followed, the trial court invalidated the noncompete provision as vague and overbroad. The jury then returned a verdict for Yu and CoreAmp on their

tortious-interference claim and assessed damages at $200,000. The jury rejected C&A’s claim that Yu breached his non-solicitation agreement or disclosed C&A’s trade secrets.

On appeal, C&A argues that the trial court erred in finding the noncompete agreement unenforceable; erred in failing to set aside the jury’s verdict on Yu and CoreAmp’s tortious-interference claim; and erred by admitting into evidence an English translation of a letter written in Mandarin. We disagree and affirm the judgment. The noncompete agreement was fatally overbroad; the evidence sufficed to show that C&A interfered with a probable business expectancy that the jury could properly value at $200,000; and the trial court committed no reversible error by admitting the English translation into evidence.

BACKGROUND

Applying “well-settled principles of appellate review,” we “view the evidence in the light most favorable to the [appellees]”—Yu and CoreAmp—as they have in their “favor a jury verdict confirmed by the trial judge.” United Leasing Corp. v. Lehner Fam. Bus. Tr., 279 Va. 510, 513 (2010). “Doing so requires that we ‘discard’ the [appellants’] evidence when it conflicts with the [appellees’] evidence, ‘regard as true all the credible evidence favorable to the [appellees],’ and read ‘all fair inferences’ in the [appellees’] favor.” Camann v. Commonwealth, 79 Va. App. 427, 431 (2024) (en banc) (quoting Commonwealth v. Cady, 300 Va. 325, 329 (2021)).

Yu and Xiang are cousins. Xiang’s parents founded C&A in the 1990s. C&A is a wholesaler of scientific equipment and educational supplies. Xiang started working for the company in 2015, quickly becoming the Chief Executive Officer.

A. Xiang hires Yu at C&A, but they have a falling out.

In 2017, Xiang approached Yu “to help save” the company. C&A was in “very bad shape” and “almost bankrupt.” By 2019, with Yu’s help, C&A was turning a profit; Yu was promoted to Chief Operating Officer.

After Yu’s promotion, Xiang and Yu entered into a shareholder agreement that was prepared by Xiang. The agreement gave Yu a 30% interest in C&A and Xiang a 70% interest. Section 8(a) of the shareholder agreement contained a broad noncompete provision—with an incomplete conditional clause at the end—governing a departing shareholder’s obligations after selling his shares:

Noncompetition. . . . Unless otherwise agreed to in writing by a majority of the Board of Directors, a departing Shareholder will not be employed, concerned, or financially interested, either directly or indirectly, in the same or a similar business as that conducted by the Corporation, or compete with the Corporation for a one-year period following the date the departing Shareholder conveys his or her shares if any customers of the same, similar, or competing business.

(Emphasis added). Paragraph 8(b) of the shareholder agreement also obligated Yu not to disclose C&A’s trade secrets or customer lists.

Under Yu’s leadership, C&A’s gross revenue increased from $4.5 million to $26 million.

But in 2020, the relationship between Yu and Xiang soured.

According to Yu, Xiang demanded that he “make [C&A] another $100,000,000 in the next five years” or Xiang would withhold Yu’s ownership distribution. Without that distribution, Yu worried that he would be unable to pay his share of C&A’s tax liability.1 Xiang also directed Yu to “double” his workload.

1 Yu explained that because C&A was structured as an S-Corporation, he and Xiang had to pay their respective shares of the corporate tax.

Unable to resolve the conflict, Yu and Xiang negotiated a stock-purchase agreement under which Yu agreed to sell his shares back to the company. Paragraph 6(a) of the agreement contained a non-solicitation provision obligating Yu for a period of 12 months from the termination of his employment not to “solicit or contact” any C&A customer “with a view to induce or encourage” the customer “to discontinue or curtail its relationship with” C&A.

B. Yu forms CoreAmp, Inc.

Yu formed CoreAmp, Inc. in July 2021, while Yu and Xiang were negotiating the stock-purchase agreement. Though he had no plans for CoreAmp when he created it, Yu contemplated consulting, software, and third-party logistics as potential business options. The “third-party logistics” he contemplated would not compete with C&A; the company could have worked “either for or with C&A,” not against it.

The stock-purchase agreement took effect on August 1, 2021, starting the one-year noncompete obligation under paragraph 8(a) of the shareholder agreement. Yu testified that his last day of work at C&A was August 23, 2021. So his separate, 12-month non-solicitation obligation under paragraph 6(a) of the stock-purchase agreement extended to August 23, 2022.

In the year following his departure from C&A, Yu did not contact “any other entity that had a business relationship with C&A in order to induce or encourage that entity to discontinue or curtail its relationship with C&A.” Nor did he try to compete with C&A for business during that period. And at no time after leaving C&A did Yu ever disclose any of C&A’s confidential information.

In September 2022, a month after his noncompete and non-solicitation obligations had ended, Yu reached out to one of C&A’s customers, Carolina Biological Supply Company. In October, Carolina Biological invited CoreAmp to become one of its vendors. Yu and CoreAmp signed a nondisclosure agreement on October 25, 2022. Carolina Biological’s vice president

introduced Yu to the company’s purchase manager, who added CoreAmp to the company’s computer system. In November or December, Carolina Biological told Yu that it “wanted [CoreAmp] to completely replace C&A Scientific” as the company’s supplier. Carolina Biological had grown unhappy with C&A for cutting corners on quality while raising prices. Carolina Biological gave Yu the “C&A Scientific product list for [Yu] to replace with the [CoreAmp] target price.” Based on his “knowledge of the industry,” Yu anticipated that replacing C&A as Carolina Biological’s vendor would net CoreAmp $300,000 per year. In late 2022, CoreAmp made its first sale to Carolina Biological in the amount of $1,000.

C. Litigation ensues after C&A warns Carolina Biological to stop working with Yu.

On January 12, 2023, however, Yu received a letter from Kelly Nash, a lawyer engaged by C&A “to investigate and prosecute civil claims against [Yu] and any of [his] affiliated companies, including CoreAmp, Inc. [] relating to alleged breaches” of the shareholder and stock-purchase agreements. Nash’s letter requested that Yu submit to mediation to “informally and amicably” resolve the alleged contractual violations.

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C&A Scientific Company, Inc. v. Chenhua Yu, a/k/a Kenny Yu, (Va. Ct. App. 2026).

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