• Report: #542253

Complaint Review: Robert M. Prestwood DBA Primetech

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  • Submitted: Sat, December 19, 2009
  • Updated: Sat, January 21, 2012

  • Reported By: Frankthedaytrader — Nationwide United States of America
Robert M. Prestwood DBA Primetech
6581 Radcliff Circle Huntington Beach, California United States of America

Robert M. Prestwood DBA Primetech Robert Milton Prestwood ROBERT M. PRESTWOOD DBA PRIMETECH vs. COHEN RE: Miss Appropriation of trade secrets: Cohen Exonerated, Primetech Appeal Denied Huntington Beach, California

*UPDATE EX-employee responds: FALSE REPORT SAYS ATTORNEY ORLOFF pH 562-572-4250


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ROBERT M. PRESTWOOD DBA PRIMETECH vs. COHEN RE: Miss Appropriation of trade secrets: Cohen Exonerated, Primetech Appeal Denied

Primetech v. Cohen: No Duty Of Loyalty To Past Employers

Posted on June 4, 2008 as reported by by Jason Jarvis

The California Courts of Appeal recently concluded that a former employee could not have breached a duty of loyalty to his employer where he entered into competition with the employer only after leaving the company. Primetech Corp. v. Cohen, 2008 WL 1899976 (Cal. App. 4 Dist. April 30, 2008).

The plaintiff, Primetech Corporation, a supplier of aircraft parts to the military and civilian industry, hired defendant Jonathan Cohen to help produce a database of aircraft parts. A year after Cohen started, the United States Air Force suspended Primetech and debarred many of its principals from any government contracting because of allegations that the company had knowingly delivered counterfeit parts to the Department of Defense. Around this time, Cohen, and another employee of Primetech, formed Air Sonic, an aircraft parts business, where they continued to use Primetechs database. Cohen ultimately separated from Primetech in July 2005, taking several computers with him, as well as a database program containing Primetechs financial information.

Primetech sued Cohen and his new aircraft parts company, Air Spectrum, which had replaced the earlier Air Sonic. After a bench trial, the trial court entered judgment for Cohen on most of the causes of action, rejecting Primetechs claims for breach of loyalty, misappropriation of trade secrets, and unfair competition, among others. Primetech argued on appeal that the trial court had erred in denying its motion for a directed verdict (nonsuit) on its cause of action for breach of loyalty. Primetech alleged that Cohen had breached his duty of loyalty when he began operating his own aircraft parts company while still employed at Primetech. The trial court, however, concluded that Cohen was never an officer of the company and furthermore, he had started Air Sonic with the consent of Primetechs vice president and had not actually decided to compete with Primetech until after he had separated from the company, which he was entitled to do since there was no non-compete clause in his employment contract. Reviewing the facts, the Courts of Appeal observed that while substantial evidence supported a determination that Cohen was an officer of Primetech when he set up a competing business using Primetechs database, Primetech had failed to demonstrate that Cohen had directly harmed the company with his competing venture, so any error was not prejudicial and thus reversal was not warranted. As a result, the Courts of Appeal held that the trial courts factual findings precluded Primetech from succeeding under a breach of loyalty theory.

This case should prompt companies to consider carefully the circumstances under which they separate from former executives. Although non-competition agreements can protect an employer, a company should not rely on breach of loyalty claims to protect against contemporaneous competition where there is any inference of an amicable split. Employers should also realize that to pursue a breach of loyalty claim successfully , they must demonstrate that the employee formed the design to compete while still employed with the company. Similarly, without adequate trade secrets counseling and preparation, even a companys most valuable asset (in this case the airplane parts database) can be used by former employees in competing businesses if the proper protections are not in place.

This report was posted on Ripoff Report on 12/19/2009 10:42 AM and is a permanent record located here: http://www.ripoffreport.com/r/Robert-M-Prestwood-DBA-Primetech/Huntington-Beach-California-92646/Robert-M-Prestwood-DBA-Primetech-Robert-Milton-Prestwood-ROBERT-M-PRESTWOOD-DBA-PRIMETEC-542253. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 UPDATE EX-employee responds


AUTHOR: Paul Orloff, Esquire - (USA)

The author FRANKTHEDAYTRADER will not even sign his name.  What a coward.  We all know it is Jon cohen and Ronald Moore the convicted drug dealer and armed robber respectively.  I guess the two will learn even after all the time in prison.  Primetech Corporation is a california corporation so this means it is not possible to be a DBA of Robert Prestwood.  Anothe major error in their BOGUS REPORT is Jon Cohen and his stepfather Harvey Modlin took everything from inside Primetech Corporation and formed their own company long before they were fired.  They even used the Primetech financials to lease their location.  Even with all the assets they had stolen from Primetech Corporation the business failed when the Huntington Beach Police Department performed a DRUG STING OPERATION and caught Jon Cohen selling drugs form the office.  Cohen then later teamed up with convicted armed robbery/ convicted Felon ron Moore.

Please note the written by Jon Cohen/Ron Moore AKA FRANKTHEDAYTRADER is a false report on my client Robert m. Prestwood.  He has been a client of mine for over 10 years and we ettlen for $100,000 for Volvo Aero, Ins. not shipping mr. Prestwood the aircraft parts he paid for.

We also proved Jon Cohen and his family stole bigtime from Primetech on of Mr. Prestwood's companies.  Most recently we obtained a $964,000.00 on a Miami FAA 8130 repair station for brivh of contract.  When you consider Mr. Prestwood hired Jon cohen for $300.00 a week in 2004 it is laughable.

If you would like further information on this bogus report Jon Cohen wrote please call me: 562-572-4250
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