Litigation Updates (State & Federal)
State Action Update as of 11-20-09: The complaint was filed on 8/28 alleging claims for breach of contract and unfair competition arising out of Ellie Mae’s misappropriation of proprietary information provided by DM pursuant to the Reseller Agreement. Parties began exchanging discovery requests on 9/22. EM filed a demurrer to DM’s unfair competition claim on 10/15, which was overruled on 11/17. EM’s answer is due on 12/7. A case management conference is scheduled for January 29, 2010, at which time the court may set a trial date.
Federal Action Update as of 11-20-09: Complaint was also filed on 8/28. On 9/18 we received notification that our case was being assigned to Judge Marilyn Hall Patel. On 9/30 EM filed a motion asking the court for permission to file a motion to challenge the claims pled in our complaint, which the court denied on 10/2. Accordingly, EM filed an answer on 10/6 and also a counterclaim against DM alleging claims for copyright infringement, violation of the Federal Computer Fraud and Abuse Act, breach of contract, inducing breach of contract and unfair competition, all arising out of DM’s attempts to continue servicing its customers following EM’s termination of DM from ePASS. DM answered the counterclaim on 10/29 and asserted an additional counterclaim against EM seeking a declaration that EM’s copyrights are invalid. On 10/20, Judge Patel issued an order requiring the parties to attempt to mediate by 2/17/10. A case management conference is scheduled before Judge Patel on 1/4/10 at which time the court will set a case management schedule including a trial date.
