Multiple Energy Technologies, LLC v. Seth Casden

CourtDistrict Court, C.D. California
DecidedFebruary 21, 2025
Docket2:21-cv-01149
StatusUnknown

This text of Multiple Energy Technologies, LLC v. Seth Casden (Multiple Energy Technologies, LLC v. Seth Casden) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Multiple Energy Technologies, LLC v. Seth Casden, (C.D. Cal. 2025).

Opinion

O 1

2 3 4 5 6 7

8 United States District Court 9 Central District of California

11 MULTIPLE ENERGY Case № 2:21-cv-01149-ODW (RAOx) TECHNOLOGIES, LLC, 12 Plaintiff, ORDER RE POST-TRIAL MOTIONS 13 v. [218][219][220][228] 14 SETH CASDEN, 15

Defendant. 16

17 18 I. INTRODUCTION 19 Plaintiff Multiple Energy Technologies, LLC (“MET”) brought this action 20 against Defendant Seth Casden for false advertising and tortious interference with 21 contractual relations. After a jury trial, the Court granted in part MET’s Federal Rule 22 of Civil Procedure (“Rule”) 50(a) motion on one claim, the jury returned a verdict in 23 favor of MET on the second, and the Court issued a Post-Trial Order (“PTO”) 24 addressing the remaining claims and issues. (Verdict, ECF No. 190; PTO, ECF 25 No. 198.) Casden and MET now renew post-trial motions. (ECF Nos. 218, 219, 220, 26 228.) The Court deemed the motions appropriate for decision without oral argument. 27 Fed. R. Civ. P. 78; C.D. Cal. L.R. 7-15. As the motions overlap, the Court addresses 28 them in a single omnibus order. For the reasons below, the Court rules as follows. 1 II. BACKGROUND1 2 MET developed a patented bioceramic infrared material branded as “Redwave.” 3 Casden is the co-founder and CEO of Hologenix, which manufactures, markets, and 4 licenses a patented bioceramic material branded as “Celliant.” 5 Prior to this case, in February 2019, MET sued Hologenix for allegedly 6 engaging in false advertising of Celliant. See Multiple Energy Technologies, LLC v. 7 Hologenix, LLC, No. 2:19-cv-01483-PA (RAOx) (C.D. Cal. filed February 28, 2019) 8 (“MET v. Hologenix”). On March 6, 2020, MET and Hologenix entered into a 9 Settlement Agreement and General Release (“Settlement Agreement”), which settled 10 MET’s claims in MET v. Hologenix. Casden negotiated and signed the Settlement 11 Agreement on behalf of Hologenix. 12 In the Settlement Agreement, Hologenix agreed to pay MET a total of 13 $2,500,000 according to a schedule whereby Hologenix would pay $100,000 within 14 one business day of executing the Settlement Agreement, $1,400,000 on or before 15 April 23, 2020, and the remaining $1,000,000 in 2021. As part of the Settlement 16 Agreement, Hologenix and MET also agreed to stipulate to a permanent injunction 17 enjoining Hologenix from “stat[ing] or suggest[ing]” that the Food and Drug 18 Administration (“FDA”) “approved” Celliant or “made a ‘determination’” that 19 Celliant promoted any benefits. On March 10, 2020, the court in MET v. Hologenix 20 entered the requested permanent injunction. 21 Following entry of the permanent injunction, Casden made or approved 22 statements about Celliant that violated the stipulated permanent injunction. 23 Additionally, on April 22, 2020—the day before Hologenix was scheduled to pay 24 $1,400,000 to MET pursuant to the Settlement Agreement—Hologenix filed for 25 Chapter 11 bankruptcy. As a result of the bankruptcy proceedings, MET returned the 26 only payment that it had received from Hologenix under the Settlement Agreement— 27 the initial $100,000 payment. 28 1 The Court draws the background from the PTO. 1 A. Procedural History 2 MET subsequently filed this action against Casden. (See First Am. Compl. 3 (“FAC”), ECF No. 24.) MET asserted four causes of action: (1) violation of the 4 Lanham Act, 15 U.S.C. § 1125(A)(1)(B); (2) false advertising under California 5 Business & Professions Code section 17500; (3) unfair competition under California 6 Business & Professions Code section 17200; and (4) tortious interference with 7 contractual relations. (Id. ¶¶ 76–108.) 8 From June 20 to 23, 2023, MET tried its claims before this Court and a jury. 9 (See Mins. Trial, ECF Nos. 177–80.) After the close of evidence, both parties moved 10 for judgment as a matter of law pursuant to Rule 50(a). (See Trial Tr. (“Tr.”) 455:21 to 11 487:1, ECF Nos. 243–46.) The Court granted in part only MET’s Rule 50(a) motion, 12 with respect to its claim for tortious interference. (Tr. 491.) In doing so, the Court 13 found that Casden acted to advance his personal interests when he tortiously interfered 14 with the Settlement Agreement, thus foreclosing any agency immunity defense. (Id. 15 at 492.) 16 Nonetheless, at Casden’s request, the Court submitted to the jury for advisory 17 findings two questions related to Casden’s agency immunity defense. (Id. at 493:19 to 18 497:2; Verdict 4.) Consistent with the Court’s ruling, the jury issued an advisory 19 finding that Casden acted to advance his own personal interests. (Verdict 4.) 20 Relatedly, the jury returned an advisory verdict in MET’s favor on its tortious 21 interference cause of action with an award of $1 in nominal damages. (Id.) The jury 22 also returned a verdict in MET’s favor on its Lanham Act false advertising cause of 23 action, similarly awarding $1 in nominal damages. (Id. at 1–2.) 24 Several issues remained for the Court’s resolution. (PTO 2.) The Court 25 expanded on the factual and legal bases for its ruling on MET’s Rule 50(a) motion, 26 granting judgment as a matter of law for MET on the claim for tortious interference 27 and rejecting Casden’s agency immunity defense. (Id. at 4–9.) The Court awarded 28 MET $2.5 million in damages on the tortious interference claim. (Id. at 9–10.) On the 1 Lanham Act false advertising claim, the Court found that MET is entitled to 2 disgorgement of Casden’s profits, treble damages, and attorneys’ fees. (Id. at 10–13.) 3 Similarly, the Court found Casden liable for false advertising and unfair competition 4 under California law, and issued a permanent injunction. (Id. at 13–16.) Finally, the 5 Court denied MET’s requests for punitive damages and restitution. (Id. at 10, 14–16.) 6 On September 26, 2023, the Court entered judgment consistent with these 7 determinations, awarding MET monetary and injunctive relief. (J., ECF No. 199.) 8 B. Post-Trial Proceedings 9 On October 10, 2023, MET moved for an order awarding attorneys’ fees 10 pursuant to the Court’s PTO and the Lanham Act. (First Mot. Att’ys’ Fees, ECF 11 No. 204.) On October 13, 2023, Casden moved to alter or amend the judgment, and 12 for judgment as a matter of law (“JMOL”) or in the alternative for a new trial. (Mot. 13 Alter-Am., ECF No. 209; Mot. JMOL, ECF No. 210.) Also on October 13, 2023, 14 Casden filed an ex parte application seeking an order staying execution of the 15 monetary component of the judgment and a waiver or reduction of the supersedeas 16 bond for an appeal. (Ex Parte Appl., ECF No. 208.) In the ex parte application, 17 Casden stated that without a stay, “he will have no choice but to immediately file 18 personal bankruptcy.” (Id. at 3.) On October 17, 2023, before the Court ruled on 19 Casden’s application, he filed for bankruptcy. (Notice Bankruptcy, ECF No. 212.) 20 Consequently, the Court stayed the case pursuant to 11 U.S.C. § 362’s automatic 21 bankruptcy stay. (Stay Order, ECF No. 213.) The Court denied all pending motions 22 as moot, with leave to renew the motions upon the stay being lifted. (Id.) 23 On June 11, 2024, Casden obtained an order from the bankruptcy court lifting 24 the automatic stay in this action, “to permit [Casden] to proceed with his challenges to 25 the judgment obtained by MET,” “including pursuing [his] post-trial motions, all 26 post-judgment challenges, any and all appeals, including from the Judgment, and any 27 retrial and/or remand.” (Status Report Ex. A (“Bankruptcy Court Order”) 2, ECF 28 No.

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Multiple Energy Technologies, LLC v. Seth Casden, Counsel Stack Legal Research, https://law.counselstack.com/opinion/multiple-energy-technologies-llc-v-seth-casden-cacd-2025.