Profade Apparel LLC v. Road Runner Sports, Inc.

CourtDistrict Court, S.D. California
DecidedSeptember 2, 2020
Docket3:18-cv-01254
StatusUnknown

This text of Profade Apparel LLC v. Road Runner Sports, Inc. (Profade Apparel LLC v. Road Runner Sports, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Profade Apparel LLC v. Road Runner Sports, Inc., (S.D. Cal. 2020).

Opinion

1 2 3 4 5 UNITED STATES DISTRICT COURT 6 SOUTHERN DISTRICT OF CALIFORNIA 7 8 PROFADE APPAREL, LLC, Case No.: 18cv1254-JAH (MDD)

9 Plaintiff, ORDER GRANTING DEFENDANTS' 10 v. MOTION TO DISMISS [Doc. No. 5] 11 ROAD RUNNER SPORTS, INC.; and ROAD RUNNER SPORTS RETAIL, 12 INC., 13 Defendants. 14

15 INTRODUCTION 16 Pending before the Court is Defendants Road Runner Sports, Inc. (“RRS”) and Road 17 Runner Sports Retail, Inc. (“RRSR”) (collectively “Defendants”) motion to dismiss 18 Plaintiff Profade Apparel, LLC’s (“Plaintiff”) trade secret misappropriation, trade dress, 19 and conversion claims. See Doc. No. 5. Plaintiff filed a response to Defendants’ motion 20 and Defendants filed a reply. See Doc. Nos. 6, 7. Having carefully considered the pleadings 21 in this action, and for the reasons set forth below, the Court hereby GRANTS Defendants’ 22 motion to dismiss. 23 BACKGROUND 24 In or around June 2015, Defendants requested Plaintiff design and develop a “new 25 and proprietary sock” to replace a sock that Defendants carried for years. 1 Doc. No. 1 at 3. 26 27 1 On at least two occasions prior to the June 2015 request, Defendants had asked Plaintiff “to establish 28 1 From approximately June 2015 to March 2017, Defendants’ employees represented that 2 Plaintiff would be compensated for the design, development, production, and supply of the 3 “new and proprietary sock” through the number of bulk orders Defendants would place for 4 the “Trigonomic Arch Support Sock” (“Trigonomic Sock”). Doc. No. 1 at 4. Pursuant to 5 Defendants’ request, Plaintiff independently designed, developed, and named the 6 Trigonomic Sock at a “significant expense,” and without any assistance from Defendants. 7 Id. Plaintiff relied on these representations in deciding to enter into a vendor agreement 8 with Defendant RRS for the design and development of the Trigonomic Sock (“Contract”). 9 Doc. No. 1 at 5. Both parties signed an addendum to the Contract in April 2016 which 10 includes a Confidentiality Agreement. Doc. No. 1-2. 11 In or around April 2016, Defendants placed an order of the Trigonomic Sock with 12 Plaintiff. Doc. No. 1 at 5. Defendants placed additional small batch orders of the 13 Trigonomic Sock in December 2016 and March 2017; however, they did not adhere to 14 prior representations of ordering sufficient bulk orders to fully compensate Plaintiff. Id. 15 Defendants proceeded to terminate communications with Plaintiff and used another 16 vendor, RRSR, to produce replications of the Trigonomic Sock. Id. Plaintiff alleges 17 Defendants violated the Contract by unlawfully utilizing Plaintiff’s Trigonomic Sock 18 design to have RRSR, a vendor other than Plaintiff, to manufacture replications for 19 Defendants. Id. 20 On June 12, 2018, Plaintiff filed the instant action against Defendants 21 (“Complaint”). Doc. No. 1. Plaintiff alleges the following causes of action: (1) copyright 22 infringement; (2) trade secret misappropriation; (3) federal unfair competition; (4) 23 California unfair competition; (5) breach of contract; (6) breach of contract - implied 24 covenant of good faith and fair dealing; (7) breach of contract – quantum meruit; (8) 25 concealment; (9) intentional misrepresentation; (10) negligent misrepresentation; (11) false 26 promise; and (12) conversion. Id. On August 27, 2018, Defendants filed the pending 27 motion to dismiss Plaintiff’s trade Secret misappropriation, trade dress, and conversion 28 1 causes of action pursuant to Rule 12(b)(6) and Rule 8. Doc. No. 5. Plaintiff filed a response 2 to Defendants’ motion and Defendants filed a reply. See Doc. Nos. 6, 7. 3 LEGAL STANDARD 4 Defendants seek dismissal pursuant to Rule 12(b)(6) and Rule 8. Rule 12(b)(6) tests 5 the sufficiency of the complaint. Navarro v. Block, 250 F.3d 729, 732 (9th Cir. 2001). 6 Dismissal is warranted under Rule 12(b)(6) where the complaint lacks a cognizable legal 7 theory. Robertson v. Dean Witter Reynolds, Inc., 749 F.2d 530, 534 (9th Cir. 1984); see 8 Neitzke v. Williams, 490 U.S. 319, 326 (1989) (“Rule 12(b)(6) authorizes a court to dismiss 9 a claim on the basis of a dispositive issue of law”). Further, a pleading must contain “a 10 short and plain statement of the claim showing that the pleader is entitled to relief. . . .” 11 Fed. R. Civ. P. 8(a)(2). A complaint may be dismissed, however, where it presents a 12 cognizable legal theory yet fails to plead essential facts under that theory. Robertson, 749 13 F.2d at 534. While a plaintiff need not give “detailed factual allegations,” he must plead 14 sufficient facts that, if true, “raise a right to relief above the speculative level.” Bell Atlantic 15 Corp. v. Twombly, 550 U.S. 544, 545 (2007); see also Pierce v. Wagner, 134 F.2d 958, 959 16 (9th Cir. 1943); Patten v. Dennis, 134 F.2d 137 (9th Cir. 1943). 17 To survive a motion to dismiss, “a complaint must contain sufficient factual matter, 18 accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 19 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 547). A claim is facially plausible 20 when the factual allegations permit “the court to draw the reasonable inference that the 21 defendant is liable for the misconduct alleged.” Id. In other words, “the non-conclusory 22 ‘factual content’ and reasonable inferences from that content, must be plausibly suggestive 23 of a claim entitling the plaintiff to relief.” Moss v. U.S. Secret Service, 572 F.3d 962, 969 24 (9th Cir. 2009) (quoting Iqbal, 556 U.S. at 678). “Determining whether a complaint states 25 a plausible claim for relief will be a context-specific task that requires the reviewing court 26 to draw on its judicial experience and common sense.” Iqbal, 556 U.S. at 679. 27 In reviewing a motion to dismiss under Rule 12(b)(6), the Court must assume the 28 truth of all factual allegations and must construe all inferences from them in the light most 1 favorable to the nonmoving party. Thompson v. Davis, 295 F.3d 890, 895 (9th Cir. 2002); 2 Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337-38 (9th Cir. 1996). However, legal 3 conclusions need not be taken as true merely because they are cast in the form of factual 4 allegations. Ileto v. Glock, Inc., 349 F.3d 1191, 1200 (9th Cir. 2003); Western Mining 5 Council v. Watt, 643 F.2d 618, 624 (9th Cir. 1981). When ruling on a motion to dismiss, 6 the Court may consider the facts alleged in the complaint, documents attached to the 7 complaint, documents relied upon but not attached to the complaint when authenticity is 8 not contested, and matters of which the Court takes judicial notice. Lee v. City of Los 9 Angeles, 250 F.3d 668, 688-89 (9th Cir. 2001). If a court determines that a complaint fails 10 to state a claim, the Court should grant leave to amend unless it determines that the pleading 11 could not possibly be cured by the allegation of other facts. See Doe v. United States, 58 12 F.3d 494, 497 (9th Cir. 1995); Knappenberger v. City of Phoenix, 566 F.3d 936, 942 (9th 13 Cir. 2009).

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Bluebook (online)
Profade Apparel LLC v. Road Runner Sports, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/profade-apparel-llc-v-road-runner-sports-inc-casd-2020.