Shita v. Taylor

CourtDistrict Court, D. Oregon
DecidedFebruary 14, 2025
Docket3:25-cv-00051
StatusUnknown

This text of Shita v. Taylor (Shita v. Taylor) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shita v. Taylor, (D. Or. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF OREGON

MOUNIR SHITA, Case No.: 3:25-cv-00051-AN Plaintiff, v. OPINION AND ORDER STEVE TAYLOR, Defendant. Self-represented plaintiff Mounir Shita brings this action against defendant Steve Taylor, alleging trade secret misappropriation in violation of the Defend Trade Secrets Act, 18 U.S.C. § 1836, and state law claims for conversion, breach of fiduciary duty, and tortious interference. On January 10, 2025, plaintiff filed his initial complaint, as well as an ex parte motion to seal the case, an application for leave to proceed in forma pauperis ("IFP"), and motion for temporary restraining order ("TRO") and preliminary injunction. On January 21, 2025, the Court dismissed plaintiff's complaint and denied plaintiff's motions and IFP application. On January 27, 2025, plaintiff filed renewed motions but did not file an amended complaint or a renewed IFP application; accordingly, the Court denied plaintiff's renewed motions. On February 5, 2025, plaintiff filed an amended complaint, second renewed ex parte motion to seal, second IFP application, and second renewed ex parte motion for TRO. Defendant has not been served or appeared in this case. Plaintiff's IFP application is hereby GRANTED. Further, plaintiff is ordered to show cause in writing by March 17, 2025, why the amended complaint should not be dismissed for failure to state a claim and for lack of subject matter jurisdiction. Alternatively, plaintiff may file a second amended complaint by that date curing the defects outlined below. Finally, for the reasons set forth below, plaintiff's motions are DENIED. BACKGROUND This action arises from the parties' dispute over the ownership and direction of EraNova Global ("EraNova") and its development of artificial general intelligence ("AGI") technology. In his amended complaint, plaintiff alleges the following. Over twenty-seven years, he "developed a revolutionary approach to AGI based on quantum mechanics and general relativity theories, distinctly different from current mainstream [artificial intelligence] approaches." Am. Compl., ECF [14], ¶ 11. In November 2024, he incorporated EraNova Global ("EraNova") "to explore commercialization opportunities while maintaining personal ownership of all intellectual property." Id. ¶ 13. Defendant was a co-founder of EraNova "but was never granted any ownership rights to the underlying AGI technology." Id. ¶ 14. On December 15, 2024, following disagreements over EraNova's direction, plaintiff emailed defendant proposing two potential paths forward. Id. ¶ 15 (citing id. Ex. A). On December 16, 2024, defendant "responded with unauthorized demands[.]" Id. On December 18, 2024, plaintiff "terminated [d]efendant's involvement" in EraNova, to which defendant "threatened $1.5 million in retaliatory penalties if [p]laintiff sought legal protection[.]" Id. On December 20, 2024, plaintiff sent a warning email regarding deletion of trade secrets, and defendant "falsely claimed ownership rights" over those trade secrets. Id. On January 24, 2025, "[e]vidence emerged that [d]efendant's system was compromised[.]" Id. ¶ 16. On February 4, 2025, plaintiff "received confirmation that [d]efendant is actively recruiting third parties to work on the AGI technology[.]" Id. Plaintiff's proposed TRO bars defendant and all persons acting in concert with him from "[u]sing, disclosing, or misappropriating [p]laintiff's trade secrets and proprietary AGI technology"; "[c]laiming any ownership, authority, or control over [p]laintiff's intellectual property"; "[e]ngaging in any development activities that would require disclosure of [p]laintiff's trade secrets to third parties"; and "[d]estroying, altering, concealing, or transferring any materials containing [p]laintiff's trade secrets." Renewed Ex Parte Mot. for TRO ("Mot. for TRO"), ECF [16], at 15. The proposed order also requires defendant to "[p]reserve all physical and electronic materials containing or relating to [p]laintiff's trade secrets"; "[i]dentify any third parties to whom he has disclosed or intends to disclose [p]laintiff's trade secrets"; "[c]ease using any email addresses or signatures suggesting authority over [p]laintiff's technology"; and "[p]rovide a complete accounting of all locations where trade secret information may be stored." Id. Plaintiff also requests a waiver of the security requirement. Id. DISCUSSION A. Sufficiency of Complaint 1. Failure to State a Claim When a complaint is filed by a plaintiff proceeding IFP, the court must dismiss the case if it determines that the action is frivolous or malicious, fails to state a claim on which relief can be granted, or if the defendant is immune to monetary relief. 28 U.S.C. § 1915(e)(2)(B). The standard used under 28 U.S.C. § 1915(e)(2)(B) for failure to state a claim is the same as the Federal Rule of Procedure ("FRCP") 12(b)(6) standard. Watison v. Carter, 668 F.3d 1108, 1112 (9th Cir. 2012) (citing Lopez v. Smith, 203 F.3d 1122 (9th Cir. 2000)). To survive a FRCP 12(b)(6) motion to dismiss for failure to state a claim, a complaint must allege "sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.'" Aschroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). A claim is facially plausible "when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Id. at 678 (citing Twombly, 550 U.S. at 556). The court "must accept as true all factual allegations in the complaint and draw all reasonable inferences in favor of the nonmoving party." Retail Prop. Tr. v. United Bhd. of Carpenters & Joiners of Am., 768 F.3d 938, 945 (9th Cir. 2014). Bare assertions that amount to mere "formulaic recitation of the elements" of a claim "are conclusory and not entitled to be assumed true." Iqbal, 556 U.S. at 681. In ruling on a FRCP (12)(b)(6) motion to dismiss, a court may "consider only allegations contained in the pleadings, exhibits attached to the complaint, and matters properly subject to judicial notice." Swartz v. KPMG LLP, 476 F.3d 756, 763 (9th Cir. 2007) (per curiam) (citation omitted). The court must construe pleadings by self-represented plaintiffs liberally "and must afford plaintiff the benefit of any doubt." Karim-Panahi v. L.A. Police Dep't, 839 F.2d 621, 623 (9th Cir. 1988) (citation omitted), aff'd, 15 F.3d 1086 (9th Cir. 1994). Before dismissing a complaint, a court must give a statement of the complaint's deficiencies and must give leave to amend the complaint unless it is "absolutely clear" that the deficiencies could not be cured by amendment. Id. (internal quotation marks omitted) (quoting Noll v. Carlson, 809 F.2d 1446, 1448 (9th Cir. 1987), superseded by statute on other grounds as stated in Lopez v. Smith, 160 F.3d 567, 570 (9th Cir. 1998), rev'd and remanded on other grounds, 203 F.3d 1122 (9th Cir. 2000)), abrogated on other grounds as stated in Cuviello v. City & Cnty. of San Francisco, 940 F. Supp.

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Bluebook (online)
Shita v. Taylor, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shita-v-taylor-ord-2025.