In 2007, plaintiff Telsa Motors Inc., a producer of electric cars based in San Carlos, hired Fisker Coachbuild, LLP to design the interior and exterior of the WhiteStar, a proposed all-electric, four-door sedan.
In November, the design was completed, and the relationship ended.
At about the same time, Fisker Coachbuild and Quantum Technologies agreed to form Fisker Automotive Inc. with the intent to produce plug-in hybrid electric vehicles based on Quantum's proprietary drive-train technology.
In January 2008 at the Detroit Auto Show, Fisker Automotive presented Karma, a non-working model of its proposed four-door hybrid sedan.
Telsa Motors sued Fisker Coachbuild, its principals Henrik Fisker and Bernhard Koehler, and Fisker Automotive, for stealing trade secrets and breach of contract.
Fisker contended that it did not breach the contract or use any of Telsa Motors's alleged trade secrets in designing Karma, in that it was a completely different car than the WhiteStar.
Fisker further claimed that designing other cars, such as Karma, was expressly authorized under its contract with Telsa.
Defense counsel asserted that the suit had been brought in bad faith to stop Fisker from getting financing for the start-up company, Fisker Automotive, and to prevent Karma from reaching consumers.

PUBLISHED IN: VerdictSearch California Reporter Vol. 8, Issue 1