In December 2013, plaintiff AeroVironment Inc., a California government contractor that develops drone technology, was informed that one of its employees, Gabriel Torres, had resigned. AeroVironment had previously hired Torres, along with Justin McAllister and Jeff McBride, to work in its engineering department, where the company was developing its drone technology. When Torres resigned, he allegedly told the company that he was no longer going to work and, instead, would stay home with his children. However, according to AeroVironment, Torres, McAllister and McBride had already formed a company, Micasense Inc., where they would all eventually work after their respective resignations. AeroVironment sued Torres, McAllister, McBride and Micasense Inc. AeroVironment alleged that the defendants’ actions constituted breaches of contract, intentional misrepresentations, concealments, breaches of fiduciary duty and breaches of the employee duty of loyalty under the Labor Code. Plaintiff’s counsel noted that Torres had started as an engineer, but he eventually became one of the “chief engineers” in one of AeroVironment’s unmanned aircraft systems departments. Counsel contended that Torres, McAllister and McBride had all previously signed agreements with AeroVironment to keep the company’s proprietary information confidential and to not engage in any competing businesses during their employment. However, plaintiff’s counsel argued that Torres, McAllister and McBride all breached that agreement. Defense counsel argued that AeroVironment’s allegations were false and that its characterizations of the defendants’ employment and events that led to the formation of a separate company were misleading. Counsel contended that the defendants never misrepresented the reasons for their departure and that they always respected AeroVironment’s intellectual property. Defense counsel further contended that the individual defendants’ subsequent company, Micasense Inc., was launched well after their respective terms of their employment with AeroVironment., AeroVironment sought recovery of damages for the loss of loyalty. It also sought recovery of punitive damages against each of the defendants.