Weiss Residential Research LLC v. Experian Information Solutions Inc. et al.

Breach Of Contract, Trade Secrets Theft

Central District

Judge Mark C. Scarsi

Defense Attorneys: Jones Day, Richard J. Grabowski, John A. Vogt, Ryan D. Ball, Ashley E. Sarkozi, Hannah K. Bensen, Michael A. Kushner

Plaintiffs Attorneys: Haley Guiliano Llp, Richard T. Mccaulley, Joshua V. Van Hoven, William J. Ulrich; Intelink Law Group, P.C., Lisbeth B. Merrill

Richard J. Grabowski

Jones Day, led by partner Richard J. Grabowski, defeated a breach of contract and trade secrets misappropriation lawsuit against his client, Experian Information Solutions Inc., over an unreleased product.

Experian tried for a year to develop a Current Expected Credit Loss ("CECL") model using Weiss Residential Research LLC's licensed property valuation data. But the company did not succeed and decided to not renew the parties' relationship.

Weiss claimed in its 2020 lawsuit that Experian had misappropriated its data and purported data matching expertise.

The company alleged Experian promised an ownership interest and revenue share in the CECL model. Jones Day, which defended Experian from the outset, countered that this was contradicted by the agreements.

U.S. District Judge Mark C. Scarsi of Los Angeles sided with Experian's summary judgment motion in September. Weiss Residential Research LLC v. Experian Information Solutions, Inc., et al., 20-CV-00861 (C.D. Cal., filed May 6, 2020).

"In total, the record reveals that Plaintiff provided data and services in accordance with its bargained-for duty to do so, not because of a fraudulent scheme to misappropriate Plaintiff's trade secrets or mislead Plaintiff through fraud," Scarsi wrote.

The decision underscores the importance of careful contract drafting, particularly in agreements to license data for products, and highlights the importance of drafting a proper damages waiver and damages cap, Grabowski said.

"Despite Weiss' colorful allegations in its complaint, we believed this action could be disposed of by summary judgment given the clear terms of the contract," he said. "Experian had paid Weiss all monies owed under the contract, so Weiss' only potential claim was for lost profits."

"But Weiss had waived lost profit claims in the contract except in cases of fraud. Our strategy was to obtain key admissions from Weiss personnel during depositions, which we would later use to support our successful summary judgment motion."

"We elicited key evidence and testimony confirming that there had been no fraud, thus leaving Weiss without a claim," Grabowski added.

The firm is seeking attorney fees.

Weiss appealed the summary judgment ruling to the 9th U.S. Circuit Court of Appeals last month. Attorneys with Haley Guiliano LLP, the plaintiff's lawyers, could not be reached for comment.

- Federico Lo Giudice

John A. Vogt

Ryan D. Ball

Ashley E. Sarkozi