Facts

John M. Floyd & Associates Inc., a consulting firm, sued First Imperial Credit Union, a financial institution. JMFA agreed to implement an overdraft privilege program for the credit union in three steps. First, JMFA would provide the credit union with recommendations for implementing the program. Next, JMFA would review its recommendations with the credit union and would devise a plan to implement the program. As a final step, JMFA would implement the program. The credit union also agreed to compensate JMFA on a contingency basis. After JMFA completed the three steps with the credit union, the program did not become operational. In 2009, the credit union hired a new CEO who unsuccessfully attempted to negotiate the contingency fee with JMFA. As a result, the CEO informed JMFA that the credit union would not use JMFA's program. In 2012, the credit union implemented a third party's overdraft program.

PLAINTIFF'S CONTENTIONS: JMFA brought claims against the credit union for breach of contract, misappropriation of trade secrets, and unfair competition.

DEFENDANTS' CONTENTIONS: The defendants moved for summary judgment on JMFA's claims for breach of contract, misappropriation of trade secrets, unfair competition, and declaratory relief.

Result

The court granted the credit union's motion but only a partial summary judgment. The plaintiff's unfair competition claim survives under two prongs of the unfair competition law.