ChargePoint, Inc. v. Claborne

District Court, N.D. California·Decided October 25, 2022·No. 5:21-cv-08050·Unknown

Opinion

CHARGEPOINT, INC., Case No. 5:21-cv-08050-EJD

Plaintiff, ORDER GRANTING MOTION FOR DEFAULT JUDGMENT v.

OVERTON CLABORNE, et al., Re: Dkt. No. 13 Defendants.

Plaintiff ChargePoint, Inc. (“ChargePoint”) initiated this suit against Overton Claborne, an individual, and Overton Instruments, a business organization, asserting claims for breach of contract, misappropriation of trade secrets under California Civil Code section 3426.1, and misappropriation of trade secrets under 18 U.S.C. section 1836. Dkt. No. 1. On January 19, 2022, the Clerk of Court entered default against both Defendants. Dkt. Nos. 10-11. Before the Court is ChargePoint’s motion for default judgment. Dkt. No. 13. This motion is suitable for disposition without oral argument pursuant to Civil Local Rule 7-1(b). For the reasons stated below, ChargePoint’s motion for default judgment is granted. I. BACKGROUND1 ChargePoint was and is a Delaware corporation and is authorized to conduct business in California. Complaint (“Compl.”), Dkt. No. 1, ¶1. It is one of world’s largest operators of electric vehicle (EV) charging station networks in North America and Europe. Id. ChargePoint designs, builds, and supports all the technology powering its network. Id. ¶ 10.

1 The Background is a summary of the allegations in the Complaint. ChargePoint alleges on information and belief that Defendant Overton Claborne (“Claborne”) is an individual residing in Martinez, California. Id. ¶ 2. He is sued in his capacity as an individual and as an agent of Defendant Overton Instruments, which is a business organization, form unknown, with a principal place of business in Milpitas, California. Id. ¶¶ 2-3. Claborne is the “owner/manager” of Overton Instruments. Id. ¶ 21. Claborne worked for ChargePoint as a consultant from about June 16, 2020, to about July 16, 2021. Id. ¶ 18. As a condition of his performing consulting work for ChargePoint, Claborne signed and agreed to be bound by ChargePoint’s Employee Proprietary Information and Inventions Agreement (“Confidentiality Agreement”), a copy of which is attached to the Complaint. Id. ¶ 18. Overton Instruments was one of ChargePoint’s authorized vendors. In connection with becoming an authorized ChargePoint vendor, Overton Instruments, by its owner/manager Claborne, signed and agreed to be bound by ChargePoint’s Mutual Nondisclosure Agreement (“NDA”), a copy of which is attached to the Complaint. On July 16, 2021, ChargePoint terminated Claborne’s consulting agreement. Id. ¶ 23. On or about July 16, 2021, ChargePoint sent Claborne a confirmation notification that his consulting services had been terminated. Id. ¶ 24. This notification included a Termination Certification through which ChargePoint reminded Claborne of his obligations under the Confidentiality Agreement. Id. The Termination Certification also required Claborne to certify that he returned and does not have any of ChargePoint’s property in his possession. Id. On August 12, 2021, ChargePoint sent Claborne a confidentiality obligation reminder letter. Id. ¶ 25. The next day, Claborne signed and returned ChargePoint’s Termination Certification. Id. ¶ 26. On about October 4, 2021, one of ChargePoint’s vendors, C.C.P. Contact Probes (“C.C.P.”), informed ChargePoint that Claborne and/or Defendant Overton Instruments sent an email that included a portion of one of ChargePoint’s technical drawings of its Blind Mate Connector. Id. ¶ 27. Claborne and Overton Instruments (collectively “Defendants”) requested C.C.P. send them certain technical information on the connector. Id. C.C.P. sent ChargePoint a copy of the email. Id. ¶ 28. Upon receipt, ChargePoint confirmed that Defendants had sent C.C.P. a portion of one of ChargePoint’s technical drawings of its Blind Mate Connector. Id. ¶ 29. The information in the technical drawings is highly confidential and ChargePoint considers it a trade secret. Id. ChargePoint alleges that Defendants’ possession of the technical drawings violated the Confidentiality Agreement, the NDA, and Claborne’s representations in his Termination Certification. Id. ¶ 31. Further, ChargePoint alleges that Defendants’ use of ChargePoint’s information regarding the Blind Mate Connector violated the Confidentiality Agreement and the NDA. Id. ¶ 32. Defendants allegedly conspired and aided and abetted each other to commit the alleged unlawful acts. Id. ¶¶ 4, 5. Defendants also “were the partners, engaging in a joint venture, agents, employees, alter egos, and representatives of each other,” when committing the alleged unlawful acts, acting within the scope of their respective authorities as agents, employees and representatives. Id. ¶ 5. Therefore, Defendants are jointly and severally liable to ChargePoint. Id. Based on the foregoing, ChargePoint asserts breach of the Confidentiality Agreement against Claborne; breach of the NDA against Overton Instruments; misappropriation of trade secrets in violation of the California Uniform Trade Secrets Act (“UTSA”), California Civil Code § 3426.1, against Defendants; and violation of the Defend Trade Secrets Act (“DTSA”), 18 U.S.C. § 1836, against Defendants. ChargePoint seeks an order enjoining Defendants from utilizing ChargePoint’s confidential, proprietary and/or trade secret information, and “requiring Defendants to return to ChargePoint all of its confidential, proprietary, and trade secret information, and any other property they have converted or misappropriated or otherwise have in their possession, custody, or control that ChargePoint has not authorized them to possess.” Id. at 16. ChargePoint also seeks an award of reasonable attorneys’ fees and costs. Id. ChargePoint served Defendants on October 19, 2021. Dkt. Nos. 8-1, 9-1, 13-1. ChargePoint requested the Court enter their defaults on January 19, 2021. Dkt. Nos. 8 and 9. The Clerk of Court entered defaults against Defendants on January 24, 2022. Dkt. Nos. 10 and 11. ChargePoint filed and served the instant motion for default judgment on March 24, 2022. Dkt. Nos. 13, 14. Default judgment may be granted when a party fails to plead or otherwise defend against an action for affirmative relief. Fed. R. Civ. P. 55(a). Discretion to enter default judgment rests with the district court. Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). When deciding whether to enter default judgment, the court considers:

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