A California federal judge has dismissed a trade secrets lawsuit against Hyundai Motor Co. by startup Soelect Inc., ruling that the claims related to electric vehicle battery technology were filed in the wrong venue. The suit alleged Hyundai misappropriated Soelect’s battery innovations and violated a nondisclosure agreement.
Hyundai Trade Secrets Suit : Venue Dispute Leads to Dismissal
On Tuesday, U.S. District Judge Charles R. Breyer ruled that California was not the proper jurisdiction for the Hyundai trade secrets suit. Soelect, a Delaware-based company, had argued that because part of its nondisclosure agreement with Hyundai’s subsidiary HATCHI was negotiated in California, the state was the correct venue. However, Judge Breyer disagreed, pointing out that Hyundai is a South Korean company, and Soelect’s business operations are primarily based in North Carolina.
Judge Breyer stated that the agreement’s ties to California were minimal and incidental. “There is no guarantee that the nondisclosure agreement grants the state federal court jurisdiction over Hyundai,” he wrote, noting that the subsidiary involved, HATCHI, is based in Michigan and is not a party in the suit.
Insufficient Evidence for Trade Secrets Claim
Soelect claimed Hyundai improperly tested battery samples provided under its agreement with HATCHI, alleging that Hyundai went beyond the scope of the testing allowed. The startup accused Hyundai of misappropriating trade secrets concerning its battery technology, which was designed to reduce fire risks and short-circuits in lithium batteries.
