DocMagic Defeats Ellie Mae’s Request to Dismiss Unfair Competition Claim
CARSON, Calif.–(BUSINESS WIRE)– DocMagic, Inc. (DocMagic), developer of DocMagic®, the industry’s leading technology for compliant mortgage loan document preparation, announced today that the San Francisco Superior Court overruled Ellie Mae’s Demurrer to DocMagic’s Second Cause of Action, which asked the court to dismiss DocMagic’s Unfair Competition claim brought under California’s Business and Professions Code Section 17200.
In late August, DocMagic filed two lawsuits against Ellie Mae: one in Federal Court for State and Federal antitrust violations, intentional interference with contractual relationships, interference with prospective economic advantage and unfair competition; and one in San Francisco Superior Court, seeking a permanent injunction against Ellie Mae arising out of Ellie Mae’s misuse of DocMagic’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 that it was preempted by California’s version of the Uniform Trade Secrets Act (CUTSA).
In overruling Ellie Mae’s demurrer, the Superior Court judge agreed with DocMagic that its Unfair Competition claim stated sufficient facts to constitute a cause of action against Ellie Mae, independent of the CUTSA. The Court’s ruling keeps alive DocMagic’s claim under Section 17200, a broad consumer protection statute prohibiting unlawful, unfair or fraudulent business acts or practices.
In reference to the court’s ruling, Dominic Iannitti, CEO of DocMagic commented, “While misappropriating others’ proprietary information is not uncommon in the technology industry, it’s not the first time Ellie Mae has been accused of such conduct, or the first time they have attempted to circumvent having to answer for their alleged conduct by legal maneuvering. We are very pleased that Ellie Mae’s attempts to block DocMagic from continued discovery and presenting all the evidence under California’s unfair competition laws was over ruled by the judge, and we look forward to having our day in court.”
About DocMagic, Inc.
Founded in 1988 and headquartered in Carson, Calif., DocMagic®, Inc., is a mortgage technology company that develops software, processes and Web-based systems for the production of compliant loan document packages. Along with its loan document production system, DocMagic®, provides legal expertise regarding the completion of all applicable forms, and both guarantees and warrants that all agency forms are up-to-date and in compliance with GSE requirements. DocMagic’s staff includes a team of compliance experts that constantly monitor legal and regulatory changes at federal and state levels to ensure accuracy. DocMagic, Inc. is the first company in the mortgage industry to develop a fully integrated mortgage customer contact management system, LoanMagic that is specifically designed to help loan officers streamline the tasks involved with acquiring leads, managing contacts and gathering all personal and credit information necessary to secure a loan. For more information on DocMagic®, visit the company’s Web site at www.docmagic.com.