Huong Que, Inc. v. Luu
California Court of Appeal for the Sixth District
58 Ca. Rptr. 3d 527 (2007)
Mui Luu and Cu Tu Nguyen (defendants) sold their Vietnamese calendar business to Huong Que, Inc. and Con Tu (Huong Que) (plaintiffs). Under the sales contract, Luu and Nguyen agreed to continue acting as managing agents for the company for four years. The contract also contained a covenant not to compete barring the defendants from involvement in a competing business “as an owner.” Subsequently, a Huong Que employee discovered an email response to a request by Luu for an address list containing about 90 percent of Huong Que’s customers. The email referenced the creation of a new company called Pro Calendar in which the defendants would be partners. Huong Que sued Luu, Nguyen, Don Phan, Pro Enterprise, LLC, and Pro Calendar (defendants) for breach of contract, breach of implied covenants of good faith and fair dealing, breach of the duty of trust and loyalty, misappropriation of a trade secret, and tortious interference with a business relationship. Huong Que asked for damages and injunctive relief. The trial court determined that Huong Que was likely to succeed on the merits of its case and granted a preliminary injunction against the defendants. Luu and Nguyen appealed to the California Court of Appeals for the Sixth District.
Rule of Law
Holding and Reasoning (Rushing, J.)