The San Francisco Superior Court has overruled Ellie Mae's demurrer to DocMagic's second cause of action, which asked the court to dismiss DocMagic's unfair-competition claim, DocMagic says.
In late August, DocMagic filed two lawsuits against Ellie Mae. One suit, filed in federal court, claimed state and federal antitrust violations, intentional interference with contractual relationships, interference with prospective economic advantage and unfair competition.
DocMagic's second suit, filed in San Francisco Superior Court, seeks a permanent injunction against Ellie Mae arising out of what DocMagic says is Ellie Mae's misuse of the company's proprietary information in connection with the Ellie Mae Docs system.
Ellie Mae asked the court to dismiss the unfair competition cause of action, contending it was preempted by California's version of the Uniform Trade Secrets Act (CUTSA).
In overruling Ellie Mae's demurrer, the Superior Court judge found that DocMagic's claim stated sufficient facts to constitute a cause of action against Ellie Mae, independent of the CUTSA, according to a DocMagic statement.