Epic Games, Inc. v. Apple Inc.

Background

Epic Games, Inc. was the plaintiff and counter-defendant, and Apple Inc. was the defendant and counterclaimant. Epic filed a motion for judgment on the pleadings, a motion asking the court to rule based on the parties’ pleadings when no material factual dispute in those pleadings requires further proceedings. The motion was fully briefed, and the court heard oral argument on November 10, 2020.

Court’s reasoning

The court stated that its reasons were given during the hearing and confirmed in the written order. It cited California decisions addressing the relationship between contract and tort claims. Those decisions state that a contract breach cannot be transformed into tort liability by claiming that the breach interfered with the promisee’s business. The court also cited authority stating that a contractual right to payment, without more, does not establish conversion, which is an unauthorized exercise of control over property to which another person is entitled.

Ruling

The court granted Epic’s motion for judgment on the pleadings. Apple’s counterclaim for intentional interference with prospective economic advantage, Count IV, and its counterclaim for conversion, Count V, were dismissed with prejudice. Apple’s requests for punitive damages were also dismissed with prejudice. The order was signed by Judge Yvonne Gonzalez Rogers.