Cuevas-Martinez v. Sun Salt Sand, Inc.

CourtCalifornia Court of Appeal
DecidedJune 6, 2019
DocketE070843
StatusPublished

This text of Cuevas-Martinez v. Sun Salt Sand, Inc. (Cuevas-Martinez v. Sun Salt Sand, Inc.) 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
Cuevas-Martinez v. Sun Salt Sand, Inc., (Cal. Ct. App. 2019).

Opinion

Filed 6/6/19

CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FOURTH APPELLATE DISTRICT

DIVISION TWO

ANTONIO CUEVAS-MARTINEZ,

Plaintiff and Appellant, E070843

v. (Super.Ct.No. PSC1705925)

SUN SALT SAND, INC. et al., OPINION

Defendants and Respondents.

APPEAL from the Superior Court of Riverside County. David M. Chapman,

Judge. Reversed.

Law Offices of David W. Osborne and David W. Osborne for Plaintiff and

Appellant.

Law Offices of Kalab A. Honey, Kalab A. Honey, and Michael B. Petersen for

Defendants and Appellants.

1 After successfully obtaining summary judgment on a lawsuit brought by his

former employer, Antonio Cuevas-Martinez sued the employer and their attorney

(collectively, respondents) for malicious prosecution. Respondents filed an anti-SLAPP

motion to strike the complaint. (Code Civ. Proc., § 425.16, unlabeled statutory citations

refer to this code.)1 The trial court granted the motion, concluding Cuevas-Martinez

failed to present prima facie evidence respondents filed the lawsuit without probable

cause. The court based its ruling on Jarrow Formulas, Inc. v. LaMarche (2003) 31

Cal.4th 728 (Jarrow), which held the entry of summary judgment on a prior lawsuit for

insufficient evidence does not, by itself, establish a probability of prevailing on the merits

of a subsequent malicious prosecution claim. (Id. at p. 742.)

On appeal, Cuevas-Martinez argues Jarrow is inapplicable because he did not rely

on the mere fact of summary judgment victory, but instead submitted evidence that, if

credited by a trier of fact, would support a verdict in his favor. We agree Cuevas-

Martinez has demonstrated his claim has the requisite minimal merit to survive anti-

SLAPP scrutiny, and will therefore reverse.

1 “SLAPP” is an acronym for “strategic lawsuit against public participation.” (Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53, 57, fn. 1.)

2 I

FACTS

A. The Underlying Complaint

Farouk Nurani and his wife Salima Nurani own and operate a restaurant in Palm

Desert called Grill-A-Burger.2 Cuevas-Martinez worked as their head cook until they

fired him in April 2015. Afterward, he opened his own burger restaurant in Cathedral

City called Tony’s Burgers. The Nuranis sued him, seeking over $200,000 in damages

and asserting six causes of action—misappropriation of trade secrets, interference with

prospective economic advantage, interference with contractual relationships, conversion,

unfair business practices, and injunctive relief.

The Nuranis made the following allegations in their complaint. They claimed they

had a good working relationship with Cuevas-Martinez until he began showing up late

and missing shifts, at which point they felt forced to fire him. They learned after his

termination that he had been working, over the previous few months, toward opening his

own restaurant. They also learned he had solicited some of their employees to work for

him. They said he solicited their customers too, telling them his new restaurant would

have the same food at better prices, and that Grill-A-Burger would fail without him.

They said he was using their exact recipes and had given his menu items “confusingly

similar names.” The Nuranis alleged they had “paid a significant sum of money” to

2They operate Grill-A-Burger through their company Sun Salt Sand, Inc., a named defendant in the malicious prosecution lawsuit. 3 Grill-A-Burger’s previous owners “for the ability to use [those recipes and names]

exclusively.”

The Nuranis also alleged Cuevas-Martinez ruined their relationships with their

suppliers. They said that immediately after Tony’s Burgers opened, their suppliers

informed them they would “no longer supply [Grill-A-Burger], despite repeated years of

service.” They alleged this was the result of Cuevas-Martinez making “certain ill-willed

and disparaging comments” about them or their restaurant. Finally, they alleged Cuevas-

Martinez stole at least $30,000 of equipment and supplies from their inventory to stock

his restaurant.

B. Summary Judgment

Cuevas-Martinez moved for summary judgment on each cause of action, and the

trial court granted his motion in its entirety.

1. Misappropriation of trade secrets

The Nuranis based their misappropriation claim on the theory that their recipes

were trade secrets. Cuevas-Martinez submitted the declaration of his attorney, who said

the Nuranis had produced the alleged trade secret document—a collection of recipes—

only after being compelled to do so by court order. He pointed out the Nuranis had not

requested any privacy protection for the document before producing it. In his own

declaration, Cuevas-Martinez said he had been an at-will employee and had no

employment agreement or covenant not to compete with the Nuranis. He denied using

their recipes and said his menu items and recipes were different than Grill-A-Burger’s.

4 He said the first time he saw the alleged trade secret document was after the Nuranis

produced it in discovery.

Cuevas-Martinez also submitted the declaration of the previous owners of Grill-A-

Burger, who denied transferring any proprietary information to the Nuranis during the

sale and said the alleged secret recipe document was no secret. They said when the

Nuranis had asked them for their recipes, they put together a document containing the

same information as Grill-A-Burger’s public menu. They attached the recipe document

and the Grill-A-Burger menu to their declaration.

In opposition, the Nuranis submitted Farouk’s declaration. He said when he

bought Grill-A-Burger, he signed a “Business Purchase Agreement,” which included the

restaurant’s “proprietary information.” He said he believed the previous owners had

hired a chef to create proprietary recipes. He said he and his wife were the only people

who had access to the document containing those recipes.

The trial court concluded that the Nuranis had failed to dispute the testimony of

the previous owners, who said that the purchase agreement did not include any

proprietary recipes and that there were no proprietary recipes or trade secrets at Grill-A-

Burger. The court concluded the evidence established the recipe document was simply a

recitation of Grill-A-Burger’s menu, which was available to the public. As a result, the

court concluded there was “nothing unique or confidential about [Grill-A-Burger’s]

ingredients or preparation techniques that could constitute a trade secret.”

5 2. Intentional interference with contractual relationships

The Nuranis initially based their intentional interference with contractual

relationships claim on the theory Cuevas-Martinez wrongfully interfered with their

contracts with their employees, but they later amended their complaint to add the theory

that he also interfered with their contracts with their suppliers. In discovery, they

identified Pepsi and West Central Produce as the suppliers who would no longer sell to

them based on Cuevas-Martinez’s alleged disparaging conduct.

In his declaration, Cuevas-Martinez said he did not make any disparaging

comments about Grill-A-Burger or the Nuranis to Pepsi or West Central Produce. His

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