April 30, 2024 |

Kibler Fowler & Cave LLP Wins Motion for Summary Adjudication and Defeats Motion for Summary Judgment

On March 27, 2024, Kibler Fowler & Cave prevailed on a motion for summary adjudication for clients RWB Platinum Vape, Inc. and Red White & Bloom Brands, Inc. (together, “RWB”). RWB is a multi-national cannabis company that in 2020 purchased a group of companies from George Sadler and Cody Sadler for more than $35 million. The Sadlers signed various agreements that contained non-compete and non-solicitation clauses in connection with the sale of their companies. After flagrantly breaching their agreements with RWB, the Sadlers claimed in litigation that the non-compete and non-solicitation clauses were not enforceable under California law. The Superior Court of San Diego County disagreed, granting RWB’s motion for summary adjudication and finding that the clauses are enforceable under California Business & Professions Code section 16601.

RWB also defeated a motion for summary judgment filed by the Sadlers for breach of a contractual non-disparagement clause based on cease-and-desist letters sent by RWB to customers and vendors after the Sadlers breached their agreements with RWB. The Court agreed with RWB that, at minimum, there are factual disputes over whether the communications were made in anticipation of possible litigation, in which case the litigation privilege would bar the Sadlers’ claim.

These substantial victories follow KF&C’s win in this case before the Court of Appeal for the State of California, Fourth Appellate District, which on October 24, 2023, handed down a unanimous ruling affirming a decision by the Superior Court disqualifying the Sadlers’ prior counsel, Austin Legal Group APC. Read more here.

Trial is set for December 2024. This will be one of many trials for KF&C this year. The KF&C team includes Partner Matt Cave, Counsel Stephen Raiola, Senior Associate Kevin Kroll, Senior Associate Kevin Cammiso, Associate Sara Borjigin, Senior Litigation Paralegal Samantha Ahlheim, and Paralegal Megan Schneider.

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