Wanke, Industrial, Commercial, Residential, Inc. v. Keck
209 Cal. App. 4th 1151
Cal. Ct. App.2012Background
- Wanke sued Keck, Bozarth, and WP Solutions for misappropriation of trade secrets and sought a broad injunction barring solicitation of Wanke’s customers.
- The Settlement Agreement included a Stipulated Injunction and reserved jurisdiction under CCP §664.6 to enforce the settlement and injunction for five years.
- The Stipulated Injunction prohibited contacting or soliciting Wanke’s customers for five years, with an 18-month carve-out for contacts initiated by the customer.
- Wanke sought an OSC for contempt and also moved to enforce the Settlement Agreement; the court held a combined contempt and settlement-enforcement trial in August 2010.
- The trial court found Wanke proved elements of knowledge, ability to comply, and willful disobedience, but concluded the injunction was invalid to the extent it protected a non-trade-secret mere identity of a customer, resulting in acquittal on all counts.
- The court proceeded to limit the injunction’s application to jobs arising during Keck/Bozarth’s Wanke employment; it also denied liquidated damages but awarded attorney fees on the motion to enforce the Settlement Agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| May appellate review occur after an acquittal in nonsummary criminal contempt? | Wanke argues acquittal should be reviewable to correct error. | Keck/WP Solutions contend double jeopardy bars review of an acquittal. | Yes; double jeopardy bars review of the contempt acquittal. |
| May a party defend enforcement of an injunction on the ground it was issued beyond the trial court’s jurisdiction? | Wanke may challenge enforceability to the extent the order was invalid on jurisdictional grounds. | Keck/WP Solutions argue no, jurisdictional defects are needed for collateral attack. | Only jurisdictional excess can defeat enforcement; not mere legal error in the injunction’s terms. |
| Did the trial court err in denying enforcement of the Settlement Agreement as to Con Am Management? | The injunction is facially valid and enforceable to protect trade secrets. | The injunction is overbroad/non-trade-secret protection; not enforceable. | The trial court erred in denying enforcement; the Stipulated Injunction is enforceable to protect trade secrets. |
| Did the trial court’s ruling as to AV Builders: Saratoga West affect enforcement for Con Am Management? | Enforcement should be consistent with the Con Am Management ruling. | Different customer and job context could still warrant enforcement. | The AV Builders ruling was affirmed; the court remanded for further enforcement consistent with this opinion. |
Key Cases Cited
- United States v. Dixon, 509 U.S. 688 (1993) (double jeopardy applies to nonsummary criminal contempt)
- Smith v. Massachusetts, 543 U.S. 462 (2005) (double jeopardy bars reexamination of court-decreed acquittal)
- Dixon (White, J., concurring in part and dissenting), 509 U.S. 688 (1993) (distinguishes summary vs nonsummary contempt)
- Ogles v. United States ex rel. Wright, 440 F.3d 1095 (9th Cir. 2006) (acquittal on statutory interpretation can bar review)
- Berry v. Superior Court, 68 Cal.2d 147 (1968) (void order cannot sustain contempt judgment)
- Signal Oil & Gas Co. v. Ashland Oil & Refining Co., 49 Cal.2d 764 (1958) (an order issued with jurisdiction may be enforced even if later found erroneous)
- Gonzalez v. Superior Court, 12 Cal.4th 804 (1996) (void order can be collaterally attacked only for excess of jurisdiction; otherwise, must obey)
- Edwards v. Arthur Andersen LLP, 44 Cal.4th 937 (2008) (trade secret exception to section 16600; general invalidity of nonsolicitation clauses)
- Morlife, Inc. v. Perry, 56 Cal.App.4th 1514 (1997) (customer lists may be trade secrets; injunctive scope to protect them)
- Retirement Group v. Galante, 176 Cal.App.4th 1226 (2009) (trade secrets and antisolicitation protections considered)
- Morlife, Inc. v. Perry (cited twice for principles), 56 Cal.App.4th 1514 (1997) (same as above)
- In re Ivey, 85 Cal.App.4th 793 (2000) (civil contempt vs criminal contempt distinctions)
