Court Of Appeal Affirms Trial Court's Order Granting Bergeson's Nonsuit Motion And Partial Grant Of Attorney's Fees
On March 29, 2011, in DVS v. Sun, et al., the Court of Appeal of the Sixth Appellate District of California affirmed the trial court’s grant of nonsuit for C2 Microsystems. The case concerned allegations of intentional misrepresentation brought by DVS, Inc. against C2 Microsystems, Inc. and Edmund Sun, the former CEO of both companies. DVS alleged that Mr. Sun made misrepresentations on behalf of C2 Microsystems regarding the value of technology that was transferred from DVS to C2 in 2004, and sought damages in excess of $10 million. Following a May 2009 trial, Bergeson partners Jay Fowler and Mindy Morton successfully argued to the trial court that the plaintiff had failed to meet its burden to show reliance on the alleged misrepresentation. Ms. Morton and Mr. Fowler were joined by associate Grace Park at oral argument before the appellate court on March 15, 2011. The appellate court found that “plaintiff’s case contained no evidence to show that the board relied upon the alleged misrepresentation, either directly or indirectly, in approving the transaction. Accordingly, the trial court did not err in granting defendants’ nonsuit motion as it pertained to the fraud cause of action.” The appellate court also affirmed the trial court’s partial grant of attorneys’ fees to C2.