Interloc Solutions, Inc v. Technology Associates International Corporation et al Doc.

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Case 2:07-cv-01534-LEW-GGH Document 22 Filed 08/14/2007 Page 1 of 4

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8 UNITED STATES DISTRICT COURT
9 EASTERN DISTRICT OF CALIFORNIA
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12 INTERLOC SOLUTIONS, ) CV 07-1534 LEW (GGH)
INC., )
13 )
Plaintiff, ) ORDER MODIFYING
14 ) TEMPORARY RESTRAINING
v. ) ORDER
15 )
)
16 TECHNOLOGY ASSOCIATES )
INTERNATIONAL )
17 CORPORATION, WALT )
OLESKY, CHARLES )
18 JOHNSON, CHRIS RHODES, )
MICHAEL NUTT and )
19 DOES 1 THROUGH 10, )
inclusive, )
20 )
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21 Defendants. )
)
22 ________________________)
23 On August 7, 2007, the Court issued a Temporary
24 Restraining Order without notice. Defendants Technology
25 Associates International Corporation (“TAIC”) and Walt
26 Olesky filed a Motion to Vacate or Modify the Order on
27 August 10, 2007. Having considered the papers submitted on
28 the issue, THE COURT NOW FINDS AND RULES AS FOLLOWS:
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 Case 2:07-cv-01534-LEW-GGH Document 22 Filed 08/14/2007 Page 2 of 4

1 Defendants TAIC and Walt Olesky’s Motion to Vacate or

2 Modify the Temporary Restraining Order is GRANTED IN PART
3 AND DENIED IN PART.
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5 Defendants TAIC and Walt Olesky’s Motion to Vacate the
6 Temporary Restraining Order is DENIED. Plaintiff has
7 presented evidence indicating a probability of success on
8 the merits of at least Plaintiff's causes of action under
9 the Computer Fraud and Abuse Act, 18 U.S.C. Sections
10 1030(a)(4), (g) and 1030(a)(5)(B)(I), (g), and
11 misappropriation of trade secrets under California Civil
12 Code Section 3426 et seq.. More importantly, Plaintiff has
13 also provided substantial evidence that it is suffering, and
14 will continue to suffer, irreparable harm absent a
15 restraining order.
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17 Plaintiff has presented evidence that certain
18 Defendants have improperly obtained Plaintiff's computer
19 files containing Plaintiff's confidential, proprietary
20 information and trade secrets. Defendants' possession and
21 potential misuse of these materials is allegedly injuring
22 Plaintiff's competitive edge with its customers.
23 Additionally, any public disclosure of the information may
24 threaten Plaintiff’s property interest in its trade secrets.
25 The Court currently has insufficient evidence to consider
26 whether Defendants TAIC and Olesky would inappropriately
27 suffer any hardship by being included in this action. Given
28 that the balance of hardships tips sharply in Plaintiff’s
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1 favor, the Temporary Restraining Order continues to be

2 warranted.
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4 However, Defendants TAIC and Walt Olesky’s Motion to
5 Modify the Temporary Restraining Order is GRANTED IN PART.
6 Therefore, the Temporary Restraining Order should be
7 modified as follows:
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9 Defendants are ENJOINED to return to Plaintiff all data
10 and information that Defendants obtained from Plaintiff's
11 computer between July 13, 2007 and July 16, 2007, and any
12 copies Defendants may have made from them. Defendants must
13 have delivered these files in any and all forms, including
14 copies of any and all parts, to Plaintiff by August 9, 2007.
15 Defendants must thereafter immediately permanently delete
16 and destroy all copies remaining on any computer systems,
17 discs, hard drives, etc.
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19 Defendants are FURTHER ENJOINED from using or
20 disclosing any of the information contained in the
21 downloaded information or on the Interloc Solutions, Inc.
22 laptops.
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24 Defendants are FURTHER ENJOINED from assertively
25 communicating with Plaintiff Interloc's current customers
26 regarding contracts for which Interloc and TAIC directly
27 compete. However, any communications in response to those
28 initiated by Plaintiff’s customers are outside the scope of
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 Case 2:07-cv-01534-LEW-GGH Document 22 Filed 08/14/2007 Page 4 of 4

1 this order. Likewise, customers and suppliers common to

2 both Plaintiff and Defendant TAIC are excluded. Plaintiff
3 shall supply an affidavit to Defendants and the Court
4 outlining a complete and accurate list of Plaintiff’s
5 current customers subject to this Order.
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7 Given the additional information provided by Defendants
8 TAIC and Olesky, the Court ORDERS Plaintiff to post a bond
9 in the amount of $5,000 pursuant to Eastern District Local
10 Rules 65.1-151 and 65-231.
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12 This Order was issued on August 14, 2007, at 12:00
13 p.m., and will expire within ten days, unless extended by
14 order of the Court or by consent of the parties.
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16 The parties are reminded that the hearing on the motion
17 for preliminary injunction will be held on August 17, 2007
18 at 10:00 a.m.
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20 IT IS SO ORDERED.
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23 RONALD S.W. LEW
24 Senior U.S. District Judge
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27 DATED: August 14, 2007
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