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Dairy, LLC v. Milk Moovement, Inc.

Dairy, LLC v. Milk Moovement, Inc.

United States District Court for the Eastern District of California

July 1, 2022, Decided; July 1, 2022, Filed

No. 2:21-cv-02233 WBS AC

Opinion

MEMORANDUM AND ORDER RE: MOTION TO DISMISS & MOTION TO STRIKE MILK MOOVEMENT, INC.'S COUNTERCLAIMS

Dairy, LLC ("Dairy") initiated this action against Milk Moovement, Inc. and Milk Moovement, LLC alleging trade secret misappropriation under federal and California law, and intentional interference with contractual relations. (First Am. Compl. ("FAC") (Docket No. 48).) Defendant-counterclaimant Milk Moovement, Inc.1 alleges the following counterclaims against plaintiff-counterdefendant Dairy: (1) declaratory judgment of no protectable trade secret under the Defend Trade Secrets Act, 18 U.S.C. § 1836; (2) declaratory judgment of no misappropriation under the Defend Trade Secrets Act, id.; (3) declaratory judgment of no protectable trade secret under the California Uniform Trade Secrets Act, California Civil Code § 3426.1; (4) declaratory judgment of no misappropriation under the California Uniform Trade Secrets Act, id.; (5) sham litigation in violation [*2]  of the Sherman Act, 15 U.S.C. § 2; (6) false advertising under the Lanham Act, 15 U.S.C. § 1125(a); (7) false advertising under the California Business and Professions Code § 17500; (8) intentional interference with prospective economic advantage; (9) unfair competition, California Business and Professions Code § 17200; and (10) unjust enrichment. (Countercls. (Docket No. 79).)

Dairy now moves to (1) strike Milk Moovement's first through fourth counterclaims for declaratory judgment; (2) dismiss Milk Moovement's fifth through tenth counterclaims; and (3) strike Milk Moovement's eighth counterclaim for intentional interference with prospective economic advantage via special motion under California's anti-Strategic Lawsuits Against Public Participation ("anti-SLAPP") statute, Cal. Civ. Proc. Code § 425.16. (Dairy's Mem. ISO Mot. ("Dairy's Mot.") at 2 (Docket No. 83-1).) The court analyzes each claim below.

I. Declaratory Judgment (Counterclaims 1-4)

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2022 U.S. Dist. LEXIS 116663 *; 2022 WL 2392622

DAIRY, LLC, a Delaware Limited Liability Company, Plaintiff, v. MILK MOOVEMENT, INC., a foreign Corporation, and MILK MOOVEMENT LLC, a Delaware Limited Liability Company, Defendants.

Prior History: Dairy, LLC v. Milk Moovement, Inc., 2021 U.S. Dist. LEXIS 240068, 2021 WL 6503860 (E.D. Cal., Dec. 15, 2021)

CORE TERMS

Milk, counterclaim, lawsuit, litigation privilege, allegations, intentional interference, trade secret, prospective economic advantage, declaratory judgment, sham exception, anti-SLAPP, sham, motion to dismiss, false advertising, Countercls, baseless, motion to strike, unjust enrichment, misappropriation, unfair, quasi-contract, initiated, customer, puffery, cause of action, free speech, counterdefendant's, quotations, non-actionable, immunity

Civil Procedure, Pleading & Practice, Pleadings, Complaints, Declaratory Judgments, State Declaratory Judgments, Grounds for Relief, Counterclaims, Defenses, Demurrers & Objections, Motions to Strike, Immaterial Matters, Irrelevant Matters, Redundant Matters, Scandalous Matters, Antitrust & Trade Law, Monopolies & Monopolization, Actual Monopolization, Claims, Monopoly Power, Sherman Act, Scope, Monopolization Offenses, US Department of Justice Actions, Criminal Actions, Intent, Exemptions & Immunities, Noerr-Pennington Doctrine, Right to Petition Immunity, Sham Exception, Scope, Parker State Action Doctrine, Motions to Dismiss, Failure to State Claim, Complaints, Requirements for Complaint, Consumer Protection, False Advertising, Lanham Act, Business & Corporate Compliance, Federal Unfair Competition Law, Elements of False Advertising, Lanham Act, Heightened Pleading Requirements, Fraud Claims, Mistake, Unfair Competition, False Advertising, Evidence, Inferences & Presumptions, Inferences, Puffery, Securities Law, Elements of Proof, Materiality, Administrative Law, Evidence, Admissibility of Evidence, Privileged Communications, Torts, Defenses, Privileges, Absolute Privileges, Statutory Privileges, Prospective Advantage, Intentional Interference, Elements, Defenses, Constitutional Law, Fundamental Freedoms, Freedom of Speech, Strategic Lawsuits Against Public Participation, Bill of Rights, Freedom to Petition, Trade Practices & Unfair Competition, State Regulation, Deceptive & Unfair Trade Practices, State Regulation, Contracts Law, Remedies, Equitable Relief, Quantum Meruit, Restitution