PS Advanced Engineering v. Skinclinical Technologies CA2/2

CourtCalifornia Court of Appeal
DecidedMay 23, 2025
DocketB328473
StatusUnpublished

This text of PS Advanced Engineering v. Skinclinical Technologies CA2/2 (PS Advanced Engineering v. Skinclinical Technologies CA2/2) 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
PS Advanced Engineering v. Skinclinical Technologies CA2/2, (Cal. Ct. App. 2025).

Opinion

Filed 5/23/25 PS Advanced Engineering v. Skinclinical Technologies CA2/2 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION TWO

PS ADVANCED ENGINEERING et al., B328473

Plaintiffs, Cross-defendants and (Los Angeles County Appellants, Super. Ct. No. BC659295)

v.

SKINCLINICAL TECHNOLOGIES, LLC et al.,

Defendants, Cross-complainants and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles County. David Sotelo, Judge. Modified and affirmed. Wen Winny Yang, in pro. per., and for Plaintiffs, Cross- defendants and Appellants. No appearance for Defendants, Cross-complainants and Respondents. ________________________________ PS Advanced Engineering (PSAE), as well as its principals, C. Don Feak III and Wen Winny Yang, appeal from a judgment in favor of respondents Skinclinical Technologies, LLC (SCT), Skinclinical LLC (Skinclinical), Thibiant Beverly Hills, LLC (Thibiant), and True North Equity, LLC (True North). Appellants became involved with respondents in a joint venture formed to promote and sell a light-based device for the treatment of facial wrinkles. The relationship quickly soured and legal proceedings commenced. Following a bench trial, the trial court entered judgment, including monetary damages, in favor of respondents. Appellants appeal from the judgment. The bulk of their briefing fails to adequately or accurately summarize the relevant record with corresponding record citations, and relies on conclusory legal arguments without reasoned application to the facts. Appellants thus fail to demonstrate reversible error as to most of their claims. Appellants do establish material error in one aspect of the trial court’s calculation of damages, however, and we accordingly modify the judgment to reflect a correct damages award. FACTUAL AND PROCEDURAL HISTORY This matter was filed in April 2017. PSAE’s operative third amended complaint, filed in March 2020, alleged 10 causes of action, including fraud, misappropriation of trade secrets, and breach of contract, and named as defendants six entities, including respondents. Respondents’ operative amended cross-complaint, filed in September 2019, pleaded 19 causes of action, including breach of fiduciary duty, breach of contract, and fraudulent misrepresentation. It named appellants as cross-defendants, as well as two legal entities affiliated with appellants. The matter went to a bench trial in the spring of 2022. Evidence was presented over the course of seven days. After issuing a proposed statement of decision, to which appellants objected at a subsequent

2 hearing, the trial court issued its final statement of decision in November 2022. Statement of Decision The statement of decision sets forth the facts found by the trial court and the court’s reasoning, in pertinent part, as follows: Feak has been an electrical engineer for many years. His wife, Yang, is an attorney. Feak developed a cosmetic device—referred to alternatively as the “Reverse Device,” “SL-8813,” and “Starlite-OM” (generally, the device or Reverse Device)— for the treatment of facial wrinkles. In 2014, he met Dr. Harry Glassman, a reconstructive surgeon involved in the skincare industry. Feak and Glassman, as well as Thibiant, a company associated with Glassman, discussed the possibility of refining the device and marketing it through a joint venture. Thibiant paid $80,000 for a study supporting the efficacy of the device, which was deemed necessary to explore selling the device on the television shopping channel QVC. After completion of the study, Thibiant transferred ownership of the study results to Skinclinical, a company associated with Thibiant. In 2015, PSAE continued discussions regarding the possible formation of a new joint venture. As part of these discussions, Niv Carmi, another principal of Thibiant, sent e-mails to Feak and Yang discussing how PSAE would “contribute” ownership of the device to the new company. Neither Feak nor Yang disagreed with this proposition. Eventually, Skinclinical and PSAE formed the joint venture SCT by negotiating and entering into an August 2015 Operating Agreement. Carmi became the manager and chief operating officer of SCT. Pursuant to the Operating Agreement, PSAE and Skinclinical each received an initial 50 percent interest in SCT. Skinclinical agreed to contribute $20,000 and the study to SCT, and PSAE agreed to “contribute” and assign to SCT the device. An additional term of the agreement provided that members of SCT, including PSAE, agreed to assign any rights, including intellectual property, in defined

3 “Inventions” to SCT. At trial, Feak and Yang testified that the Reverse Device was subject to this assignment requirement. Shortly after entering into the Operating Agreement, in September 2015 PSAE was requested to sign a separate Subscription Agreement. This agreement called for PSAE to contribute ownership of the Reverse Device along with all intellectual property and related rights in exchange for PSAE’s ownership interest in SCT. Yang signed the Subscription Agreement on behalf of PSAE in consultation with Feak. Also in September 2015, SCT entered into a Consulting Agreement with Feak. The agreement called for Feak to receive $12,500 per month for three years in exchange for providing technical support for the Reverse Device and developing new devices. The agreement had a provision allowing for early termination, after written notice of default, upon the substantial failure by a party to perform under the agreement. Around November 2015, when SCT was preparing to market, manufacture, and sell the device, it determined that it needed additional capital. Carmi and Herminio Llevat, the two representative managers of SCT designated by Skinclinical, discussed with Yang (one of two representative managers designated by PSAE, along with Feak) the capital needs. As a result of these discussions, and upon written consent of SCT’s members, Thibiant was added as a member of SCT for a contribution of $150,000 in exchange for a 2.44 percent interest. PSAE’s interest accordingly dropped below 50 percent. The written consent also authorized the issuance of additional membership interests for a potential contribution of up to $1.5 million. Later, in April 2016, True North was added as a member of SCT in exchange for a pledge of collateral in the amount of $1.5 million, which pledge (along with a concurrent pledge from Skinclinical) secured a loan amount of $1.5 million from a company called Gemini. In return, True North received a 20 percent interest in SCT.

4 After an evaluation process in which Feak participated, SCT engaged a company with a factory in Thailand, Qual-Pro Corporation (Qual-Pro) to manufacture the Reverse Device. SCT also retained a separate company to assist with logistics and supply chain management. However, notwithstanding the terms of the Operating Agreement and Subscription Agreement, PSAE refused to give the intellectual property and design history files of the device to SCT, and, later, PSAE refused to sign a Bill of Sale and Assignment document formally transferring the device and associated intellectual property rights to SCT. Yang testified that PSAE never intended to “sell” the intellectual property rights. Feak testified that he defined the word “contribute,” as used in the Operating Agreement, as “allowing access” or “providing access.” He admitted in testimony that his definition of “contribute” was different from the dictionary definition.

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PS Advanced Engineering v. Skinclinical Technologies CA2/2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ps-advanced-engineering-v-skinclinical-technologies-ca22-calctapp-2025.