Judge denies preliminary injunction in trade secrets case

A Santa Clara County judge has denied a preliminary injunction in a trade secrets theft case against a solar company and the president it hired from San Jose-based SunPower Corp.

Superior Court Judge Helen E. Williams' ruling, which was dated Monday but released Tuesday afternoon, rejected SunPower's bid for the injunction, concluding the company failed to provide enough evidence defendant Standard Industries Inc. and its subsidiary, GAF Energy LLC, ever acquired any trade secrets or GAF Energy president Martin DeBono could be found liable for misappropriation.

The ruling in the ongoing legal battles between competitors in the rooftop solar panel business was a victory for Standard Industries and its attorney, John M. "Jay" Neukom of Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates, and Cheryl A. Cauley, a Baker Botts LLP attorney who represents DeBono. SunPower Corp. v. DeBono et al., 19CV349042 (Santa Clara County Sup. Ct., filed June 14, 2019).

SunPower previously secured a temporary restraining order against DeBono, who had been its vice president of research, development and deployment until leaving for Standard Industries in January 2019, and his new employer. The company also secured a temporary and a preliminary restraining order against Gabriela Bunea, its head of research and development, who also switched jobs to GAF Energy.

Stephen H. Sutro of Duane Morris LLP, who represents SunPower, could not be reached for comment Wednesday.

In her ruling, the judge anticipated a tough courtroom battle.

"It is the court's distinct impression that this case will be hard-fought, and the court cannot say with any conviction on this record and at this stage that the plaintiff appears 'likely' to succeed over defendants on its statutory trade secret misappropriation claims," Williams wrote.

-- Craig Anderson