Cal Francisco Investment Corp. v. Vrionis

Opinion

ELKINGTON, J.

This is an appeal from an order dismissing plaintiff’s action following its election to stand on the first amended complaint without amendment.

Following the court’s sustaining of a special demurrer to plaintiff’s original complaint on the grounds of improper joinder of separate causes of action and uncertainty, plaintiff, Cal Francisco Investment Corporation, doing business as West Coast Properties, filed an amended complaint for damages against defendant, Milton Vrionis. This complaint, in substance, alleged the misappropriation by defendant of certain trade secrets of plaintiff,

In count I plaintiff, a licensed real estate broker, alleged that on or about August 31, 1961, it employed defendant as a real estate salesman which employment continued through January 29, 1968; that during his employment defendant in confidence was furnished information concerning certain trade secrets not known to plaintiff’s competitors and which gave plaintiff an advantage over its competitors, specifically, that plaintiff had procured a listing for sale of a certain 24-unit apartment building located in San Francisco and had procured a financing commitment from San Francisco Federal Savings & Loan Association and that Quentin Johnson was a prospective purchaser of such property; that following defendant’s leaving plaintiff’s employ, defendant using said information effected a sale of the apartment house to Johnson utilizing the financing commitment; and that plaintiff had been damaged as a result in an amount in excess of $25,000.

Count n alleged that pursuant to a written contract of employment entered into by plaintiff and defendant in which it was agreed that “Sales

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man shall not after the termination of this contract use to his own advantage, or the advantage of any other person or corporation, any information gained for or from the files or business of Broker,” defendant was under a duty not to use plaintiff’s trade secrets to his own advantage.

Count III, substantially the same as count I, alleged the misappropriation by defendant of another trade secret of plaintiff’s, a listing of a certain 18-unit apartment building, the terms of the listing and the knowledge that Quentin Johnson was a prospective purchaser. The amended complaint alleged the sale by defendant of this property to Johnson following the termination of his employment with plaintiff. Count IV, as count II, alleged a contractual duty on the part of defendant not to disclose this trade secret.