Case Explained: MERCER GLOBAL ADVISORS, INC. V. HEWITT, ET AL.

Court: United States Court of Appeals for the Ninth Circuit Filed: 2026-08-12 Docket: 2:23-cv-03659-GW-JPR The ninth-circuit affirmed in part and reversed in part the district court’s grant of summary judgment and exclusion of expert evidence in a civil securities dispute involving trade secret misappropriation. The court held that the district court erred in dismissing Mercer Global Advisors, Inc.’s claim under the California Uniform Trade Secrets Act (CUTSA) based on a lack of causation or damages evidence. Applying the standard that CUTSA does not require proof of causation or damages where no California Supreme Court decision dictates otherwise, and citing *Applied Med. Distribution Corp. v. Jarrells*, the court found a genuine issue of material fact regarding whether the defendants’ use of client contact information caused Mercer damages. Consequently, the court also reversed the dismissal of the breach of contract claim, ruling that it is not duplicative of the CUTSA claim and can proceed alongside it under Cal. Civ. Code § 3426.7(b) to enforce restrictive covenants. The court affirmed the dismissal of the breach of loyalty claim, noting that CUTSA preempts such claims based on the same nucleus of facts as trade secret misappropriation and that preparing to compete is not a breach of duty under California law. Additionally, the court affirmed the district court’s exclusion of the defendants’ expert testimony, finding no abuse of discretion in the application of the *Daubert* standard due to methodological flaws in the expert’s damage calculations. The case is remanded for further proceedings consistent with this opinion, allowing the CUTSA and breach of contract claims to proceed while maintaining the dismissal of the loyalty claim and the exclusion of the expert evidence. Do It For The Case Law is a news reporting service. Nothing in this episode constitutes legal advice.