Cal.Sup.Ct.;
S228277

The California Supreme Court affirmed a court of appeal decision. The court held that where a trial court initially denied defendant's motion for summary judgment, but later ruled in defendant's favor at trial and additionally found the action was brought in bad faith due to lack of evidentiary support, the interim adverse judgment rule barred defendant's malicious prosecution action.

FLIR Systems, Inc. and Indigo Systems Corporation sued former employees William Parrish and E. Timothy Fitzgibbons for misappropriation of trade secrets. The trial court denied the employees' motion for summary judgment. The employees prevailed at trial. Moreover, they obtained a ruling that the misappropriation of trade secrets claim had been brought against them in bad faith because the claim, even if superficially meritorious, lacked evidentiary support. That ruling was upheld on appeal.