Applied Medical Distribution Corp. v. Jarrells CA4/3

Filed 11/22/24 Applied Medical Distribution Corp. v. Jarrells CA4/3

NOT TO BE PUBLISHED IN OFFICIAL REPORTS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 This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.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

FOURTH APPELLATE DISTRICT

DIVISION THREE

APPLIED MEDICAL DISTRIBUTION CORPORATION, G062699 Plaintiff and Appellant, (Super. Ct. No. 30-2019- v. 01049441)

STEPHEN JARRELLS, OPINION

Defendant and Respondent.

Appeal from a postjudgment order of the Superior Court of Orange County, Michael J. Strickroth, Judge. Reversed. Jones Day, Nathaniel P. Garrett, Steven M. Zadravecz, Koree B. Wooley and David A. Phillips for Plaintiff and Appellant. Forward Counsel, Michael E. Caspino and Michael W. Weiler for Defendant and Respondent.

Where a contract provides that one party may recover attorney fees only if it obtains injunctive relief to enforce the contract’s provisions, Civil Code section 1717 does not authorize the other party to the contract to recover attorney fees it incurred to successfully defend a claim against it for damages under the same contract. In this case, the trial court erred by concluding to the contrary. We therefore reverse. FACTUAL AND PROCEDURAL BACKGROUND The facts underlying this appeal are set forth fully in this court’s prior opinion, Applied Medical Distribution Corp. v. Jarrells (2024) 100 Cal.App.5th 556. We discuss here only those facts relevant to the issues presented by this appeal. Jarrells was employed by Applied Medical Distribution Corporation (Applied) from January 2011 through January 2019. Jarrells signed a proprietary information agreement (the Agreement) at the time he was hired by Applied. The Agreement contains provisions regarding the confidentiality of company property, conflicting employment, and returning company property after the termination of employment. The Agreement permits Applied to seek and obtain equitable relief against Jarrells for breach of the Agreement’s covenants: “I agree that it would be impossible or inadequate to measure and calculate the Company’s damages from any breach of the covenants set forth . . . herein. Accordingly, I agree that if I breach any of such Sections, the Company will have available, in addition to any other right or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of such provision of this agreement. I further agree that no bond or other security shall be required in obtaining such equitable relief and I hereby consent to the issuance of such