RainFocus Inc. v. Cvent Inc.
RainFocus Inc. v. Cvent Inc., 2023 UT App 32 (Mortensen, J.)
Cvent sued RainFocus alleging trade secret misappropriation. RainFocus later sued Cvent for defamation after Cvent told RainFocus’s current and prospective clients that RainFocus misappropriated trade secrets and copyrights. The district court granted Cvent’s motion to dismiss. The Utah Court of Appeals reversed, explaining:
- The district court erred when it granted Cvent’s motion to dismiss based on a defense of “truth” because it should have credited RainFocus’s assertion that the allegations were false.
- Cvent’s defense of “mere opinion” fails because the totality of the circumstances suggest that Cvent’s comments were statements of fact rather than opinion.
- Practice Tip: A district court must accept a claim that the allegations are false, so a court may not grant a motion to dismiss at that stage in the litigation based only on a defense of “truth.”
- Practice Tip: Accurate recitations of claims in other lawsuits are not subject to a “truth” defense.