DocMagic Inc. is touting a favorable ruling in a lawsuit against Ellie Mae Inc.
The documentation preparation firm originally filed two lawsuits in August claiming Ellie used its monopoly to dump DocMagic from its widely used ePASS platform and instead provide documentation services itself through its own competing loan documentation system — Online Documents Inc.
One of the lawsuits was filed in federal court claiming state and federal antitrust violations, intentional interference with contractual relationships, interference with prospective economic advantage and unfair competition. The other was filed in San Francisco Superior Court seeking a permanent injunction.
Ellie fired back with a statement indicating DocMagic was terminated from the network because it wouldn’t agree to renew its contract under new terms of an updated agreement.
Today’s statement from DocMagic indicated that Ellie had sought to dismiss the superior court case on the basis that it was preempted by California’s version of the Uniform Trade Secrets Act.
But Ellie’s request was denied.
“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 CUTSAm,” DocMagic stated. “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.”
DocMagic Chief Executive Officer Dominic Iannitti claimed in the statement that it wasn’t the first time Ellie has been accused of misappropriating the proprietary information of other parties.
