(PS) CSPC Dophen Corporation v. Hu

CourtDistrict Court, E.D. California
DecidedNovember 13, 2019
Docket2:17-cv-01895
StatusUnknown

This text of (PS) CSPC Dophen Corporation v. Hu ((PS) CSPC Dophen Corporation v. Hu) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
(PS) CSPC Dophen Corporation v. Hu, (E.D. Cal. 2019).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 CSPC DOPHEN CORPORATION, No. 2:17-cv-1895 MCE DB PS 12 Plaintiff, 13 v. ORDER AND FINDINGS AND RECOMMENDATIONS 14 ZHIXIANG HU,

15 Defendant. 16 17 Defendant and counterclaimant, Dr. Zhixiang Hu, Ph.D., is proceeding in this action pro 18 se. Accordingly, this action has been referred to the undersigned pursuant to Local Rule 19 302(c)(21) and 28 U.S.C. § 636(b)(1). (ECF No. 216.) Pending before the court are defendant’s 20 motion to file an amended counterclaim, defendant’s motion to dismiss the third amended 21 complaint, and plaintiff’s motion to reopen discovery. (ECF Nos. 180, 197, 210.) 22 For the reasons explained below, defendant’s motion for leave to amend and plaintiff’s 23 motion to reopen discovery are granted. The undersigned will also recommend that defendant’s 24 motion to dismiss be denied. 25 BACKGROUND 26 Plaintiff CSPC Dophen Corporation (“CSPC Dophen”) commenced this action on 27 September 11, 2017. (ECF No. 1.) On February 26, 2019, plaintiff was granted leave to file a 28 third amended complaint. (ECF No. 171.) On March 15, 2019, the assigned District Judge 1 signed the parties’ stipulation continuing the time for plaintiff to file a third amended complaint. 2 (ECF No. 175.) On April 11, 2019, defendant filed a motion to file an amended counterclaim. 3 (ECF No. 180.) Plaintiff filed an opposition to defendant’s motion to amend on May 2, 2019. 4 (ECF No. 186.) Defendant filed a reply on May 9, 2019. (ECF No. 191.) 5 Plaintiff filed a third amended complaint on May 7, 2019. (ECF No. 190.) Therein, 6 plaintiff alleges that CSPC Dophen is a pharmaceutical and development company based in 7 Sacramento, California. (Third Am. Compl. (ECF No. 190) at 2.1) Plaintiff hired defendant in 8 October of 2011, as Director of CSPC Dophen’s Research Laboratory. (Id. at 3.) Defendant 9 signed a Non-Disclosure Agreement and a Policy of Conflict of Interest as part of that 10 employment. (Id. at 3-4.) 11 However, on April 24, 2014, defendant incorporated a competing entity named Dophen 12 Biomed, Inc., with the same address as CSPC Dophen. (Id. at 4.) Defendant also established a 13 bank account and deposited plaintiff’s money into that account. (Id. at 5.) And in April of 2017, 14 defendant filed an Investigational New Drug application with the Food and Drug Administration 15 (“FDA”) using plaintiff’s name without plaintiff’s consent. (Id.) Plaintiff terminated defendant’s 16 employment on July 21, 2017. (Id. at 6.) 17 Based on these allegations the third amended complaint asserts causes of action for breach 18 of contract, breach of the duty of loyalty, violation of the Defend Trade Secrets Act, 18 U.S.C. § 19 1832(a)(1), violation of the Lanham Act, 15 U.S.C. § 1125(a), conversion, violation of the 20 California Comprehensive Computer Data Access and Fraud Act, California Penal Code § 502, 21 unfair competition, and defamation. (Id. at 7-16.) 22 Defendant filed a motion to dismiss pursuant to Rule 12(b)(1) of the Federal Rules of 23 Civil Procedure on May 23, 2019. (ECF No. 197.) Plaintiff filed an opposition to defendant’s 24 motion to dismiss on June 13, 2019. (ECF No. 209.) That same day, plaintiff filed a motion to 25 reopen discovery. (ECF No. 210.) 26 //// 27 1 Page number citations such as this one are to the page number reflected on the court’s CM/ECF 28 system and not to page numbers assigned by the parties. 1 STANDARDS 2 I. Legal Standards Applicable to Motions to Dismiss Pursuant to Rule 12(b)(1) 3 Federal Rule of Civil Procedure 12(b)(1) allows a defendant to raise the defense, by 4 motion, that the court lacks jurisdiction over the subject matter of an entire action or of specific 5 claims alleged in the action. “A motion to dismiss for lack of subject matter jurisdiction may 6 either attack the allegations of the complaint or may be made as a ‘speaking motion’ attacking the 7 existence of subject matter jurisdiction in fact.” Thornhill Publ’g Co. v. Gen. Tel. & Elecs. Corp., 8 594 F.2d 730, 733 (9th Cir. 1979). 9 When a party brings a facial attack to subject matter jurisdiction, that party contends that 10 the allegations of jurisdiction contained in the complaint are insufficient on their face to 11 demonstrate the existence of jurisdiction. Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 12 (9th Cir. 2004). In a Rule 12(b)(1) motion of this type, the plaintiff is entitled to safeguards 13 similar to those applicable when a Rule 12(b)(6) motion is made. See Sea Vessel Inc. v. Reyes, 14 23 F.3d 345, 347 (11th Cir. 1994); Osborn v. United States, 918 F.2d 724, 729 n. 6 (8th Cir. 15 1990). The factual allegations of the complaint are presumed to be true, and the motion is granted 16 only if the plaintiff fails to allege an element necessary for subject matter jurisdiction. Savage v. 17 Glendale Union High Sch. Dist. No. 205, 343 F.3d 1036, 1039 n. 1 (9th Cir. 2003); Miranda v. 18 Reno, 238 F.3d 1156, 1157 n. 1 (9th Cir. 2001). Nonetheless, district courts “may review 19 evidence beyond the complaint without converting the motion to dismiss into a motion for 20 summary judgment” when resolving a facial attack. Safe Air for Everyone, 373 F.3d at 1039. 21 When a Rule 12(b)(1) motion attacks the existence of subject matter jurisdiction, no 22 presumption of truthfulness attaches to the plaintiff’s allegations. Thornhill Publ’g Co., 594 F.2d 23 at 733. “[T]he district court is not restricted to the face of the pleadings, but may review any 24 evidence, such as affidavits and testimony, to resolve factual disputes concerning the existence of 25 jurisdiction.” McCarthy v. United States, 850 F.2d 558, 560 (9th Cir. 1988). When a Rule 26 12(b)(1) motion attacks the existence of subject matter jurisdiction in fact, plaintiff has the burden 27 of establishing that such jurisdiction does in fact exist. Thornhill Publ’g Co., 594 F.2d at 733. 28 //// 1 ANALYSIS 2 I. Defendant’s Motion to Dismiss 3 Analysis of defendant’s motion to dismiss is somewhat hindered by the motion’s frequent 4 errors and misstatements. For example, the motion provides the wrong case number and 5 misstates the assigned District Judge’s name. (Def.’s MTD (ECF No. 197) at 1.) The motion 6 asks that the court “deny Plaintiffs’ Motion to Amend[.]” (Id. at 8.) Plaintiff, however, has 7 already been granted leave to file the third amended complaint and defendant is instead seeking 8 dismissal of the third amended complaint. (Id. at 1.) 9 The motion also states that it is brought pursuant to Rule 12(b)(1) “for lack of subject 10 matter jurisdiction,” but argues that the third amended complaint should be dismissed for failure 11 to state a claim upon which relief can be granted. (Id. at 1-2.) Rule 12(b)(6) governs motions to 12 dismiss for failure to state a claim. Moreover, defendant’s argument is not that the third amended 13 complaint fails to state any claim for relief.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Hilton v. Hallmark Cards
599 F.3d 894 (Ninth Circuit, 2010)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Mindys Cosmetics, Inc. v. Dakar
611 F.3d 590 (Ninth Circuit, 2010)
Edward G. Eldridge v. Sherman Block
832 F.2d 1132 (Ninth Circuit, 1987)
Richard McCarthy v. United States
850 F.2d 558 (Ninth Circuit, 1988)
Sosa v. DIRECTV, Inc.
437 F.3d 923 (Ninth Circuit, 2006)
Healy v. Tuscany Hills Landscape & Recreation Corp.
39 Cal. Rptr. 3d 547 (California Court of Appeal, 2006)
Kwan v. Mercedes-Benz of North America, Inc.
23 Cal. App. 4th 174 (California Court of Appeal, 1994)
Episcopal Church Cases
198 P.3d 66 (California Supreme Court, 2009)
Navellier v. Sletten
52 P.3d 703 (California Supreme Court, 2002)
United States v. Esparza-Ponce
7 F. Supp. 2d 1084 (S.D. California, 1998)
Silberg v. Anderson
786 P.2d 365 (California Supreme Court, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
(PS) CSPC Dophen Corporation v. Hu, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ps-cspc-dophen-corporation-v-hu-caed-2019.