Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 1 of 15 Page ID #:433 1 2 3 4 5 6 7 8 Craig J. Mariam (SBN: 225280) cmariam@grsm.com John P. Cogger (SBN: 172808) jcogger@grsm.com Samuel B. Laughlin (SBN: 299720) slaughlin@grsm.com GORDON REES SCULLY MANSUKHANI, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 Telephone: (213) 576-5000 Facsimile: (213) 877-306-0043 Attorneys for Defendant and Counterclaimant Kevin Murphy, M.D. UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 THE NEWPORT BRAIN RESEARCH LABORATORY, INC., a California corporation, and NBRL V, a Nevada limited liability corporation, ) ) ) ) ) ) Plaintiffs, ) ) v. ) KEVIN MURPHY, an Individual; and) ) DOES 1 through 10, ) Defendants. ) ) ) ) ) KEVIN MURPHY, M.D., an ) Individual, ) ) Counterclaimant, ) ) vs. ) ) THE NEWPORT BRAIN RESEARCH LABORATORY, INC., ) ) dba Brain Treatment Center, a California corporation, and NBRL V, ) a Nevada limited liability corporation, ) and, ROES 1 through 10, inclusive, ) ) ) Counter) Defendants. ) CASE NO. 8:18-cv-01625-JLS-JDE Hon. Judge Josephine L. Staton Courtroom 10A COUNTERCLAIM FOR: (1) SLANDER PER SE; (2) TORTUOUS INTERFERENCE WITH CONTRACT; (3) INTENTIONAL INTERFERENCE WITH PROSPECTIVE ECONOMIC ADVANTAGE; AND, (4) NEGLIGENT INTERFERENCE WITH PROSPECTIVE ECONOMIC ADVANTAGE. REQUEST FOR JURY TRIAL -1CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 2 of 15 Page ID #:434 1 Defendant and counter-claimant Kevin Murphy, M.D., hereby alleges the 2 following counterclaim for relief against plaintiffs and counter-defendants The 3 Newport Brain Research Laboratory, Inc., doing business as Brain Treatment 4 Center (“NBRL”), NBRL V, and ROES 1 through 10, inclusive (collectively, 5 “Counter-Defendants”) as follows: 6 Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 7 JURISDICTION AND VENUE 1. This Court has subject matter jurisdiction of the state claims brought 8 by Dr. Murphy pursuant to 28 U.S.C. section 1367 because these claims are so 9 related to Dr. Murphy’s claims under Federal Law that they form part of the same 10 case of controversy and derive from a common nucleus of operative fact, including 11 the following of Dr. Murphy’s claims: First Claim for Slander Per Se, California 12 Civil Code section 46; Second Claim for Tortuous Interference with Contract; 13 Third Claim for Intentional Interference with Prospective Economic Advantage; 14 and, Fourth Claim for Negligent Interference with Prospective Economic 15 Advantage. 16 2. NBRL and NBRL V commenced this action through the filing of their 17 Complaint, Docket Entry No. 1, charging Dr. Murphy with, among other claims, 18 unfair competition under 15 U.S.C. section 1125(a) and copyright infringement 19 under 17 U.S.C. section 101, et seq., and thus, NBRL and NBRL V have submitted 20 themselves to the jurisdiction of this Court. 21 22 THE PARTIES 3. Dr. Murphy is a board-certified radiation oncologist and a professor 23 and Vice Chair of the Department of Radiation Medicine and Applied Sciences 24 and Director of the Center for Neuromodulation at the University of California San 25 Diego, who works and resides in the County of San Diego, State of California. 26 4. On information and belief, NBRL is a corporation organized under the 27 laws of the State of California, with its principal place of business located in this 28 judicial district at 1601 Dove St., Suite 299, Newport Beach, CA 92660. -2CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 3 of 15 Page ID #:435 1 5. 2 organized under the laws of the State of Nevada, with its principal place of 3 business located in this judicial district at 1601 Dove St., Suite 299, Newport 4 Beach, CA 92660. 5 Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 On information and belief, NBRL V is a limited liability corporation 6. Dr. Murphy does not know the true names or capacities of third party 6 defendants ROES 1 through 10, inclusive, and therefore sues these persons or 7 entities by their fictitious names. Dr. Murphy will amend this counterclaim to 8 allege their true names or capacities when they have been ascertained. Dr. Murphy 9 is informed and believes and, on that basis, alleges that each fictitious third party 10 defendant is in some manner responsible for the acts or omissions alleged, and the 11 damages claimed, in this action. 12 7. Dr. Murphy is informed and believes and, on that basis, alleges that 13 each and all Counter-Defendants, including ROES 1 through 10, were the agents, 14 servants, employees, partners, or joint venturers of each other Counter-Defendant, 15 and that each Counter-Defendant was acting within the course and scope of such 16 agency, employment, partnership, or joint venture, and with the consent or the 17 ratification of each other in doing the things alleged here. 18 19 20 BACKGROUND FACTS A. Dr. Murphy’s Practice and History 8. Dr. Murphy is a professor and the Vice Chair in the Department of 21 Radiation Medicine and Applied Sciences at the University of California San 22 Diego (“UCSD”) School of Medicine, where he instructs medical students, 23 residents, and fellows, and is frequently invited to speak on these technologies at 24 national and international seminars. Dr. Murphy specializes in the treatment of the 25 human brain, having practiced in radiation oncology for the past twenty-years, Dr. 26 Murphy’s clinical practice and research interests focus on the application of a 27 number of technologies in the treatment of pediatric and adult brain and central 28 nervous system tumors, including the use of Frameless Stereotactic Radiosurgery -3CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 4 of 15 Page ID #:436 1 (“SRS”), Intensity Modulated Stereotactic Radiosurgery (“IM-SRS”), and 2 Hypofractionated Stereotactic Radiosurgery. 3 9. 4 Military, as he served in the United States Navy as an Engineering Officer aboard 5 the aircraft carrier USS Ranger after graduating college in 1989, including service 6 in the Navy during the first Gulf War. Dr. Murphy has since developed part of his 7 practice and research focused on post-traumatic stress disorder (“PTSD”) suffered 8 by military veterans. 9 Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 Dr. Murphy also has nine years of experience with the United States 10. Dr. Murphy’s current medical research focuses on using a 10 personalized form of repetitive Transcranial Magnetic Stimulation (“TMS”) 11 intended to restore neuronal synchrony in a number of neurocognitive and 12 behavioral disorders, and, to treat and diagnose terminally ill patients suffering 13 from brain tumors, among other brain maladies, including PTSD. In Dr. Murphy’s 14 practice, TMS relies on the use of a wireless electroencephalogram (“EEG”), a 15 non-invasive test that detects electrical activity in the brain using small sensors 16 placed over the patient’s scalp. Dr. Murphy is skilled in reading and interpreting 17 electrophysiological information, including EEGs. To date, Dr. Murphy has read 18 and interpreted tens of thousands of EEGs. Since he first started studying and 19 practicing in TMS, Dr. Murphy has treated more than 3,000 patients with his own 20 novel techniques, and is now pursuing approval for multiple clinical trials testing 21 TMS for various brain conditions, such as chemobrain, PTSD, addiction behaviors, 22 autism spectrum disorders, and cerebral palsy. Dr. Murphy’s proprietary “PrTMS” 23 treatment protocols are safe and effective, as is his treatment of his patients. 24 B. 25 Initial Interaction with NBRL 11. Dr. Murphy’s son suffers from medical conditions, and as a result Dr. 26 Murphy has investigated a variety of new and developing treatments for his son, 27 including alternative medications and therapies for treatment. 28 12. Dr. Murphy became aware of one such treatment possibility in 2013 -4CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 5 of 15 Page ID #:437 1 in the form of NBRL, which owns a treatment facility that specializes in TMS. Dr. 2 Murphy first learned of NBRL’s treatment center, BTC, in the summer of 2013. In 3 or about September of 2013, Dr. Murphy first approached NBRL about treatment 4 options for his son. Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 5 13. In or about October of 2013, Dr. Murphy’s son began treatment at 6 NBRL’s treatment center, which continued into December of 2013. During the 7 treatment of his son, Dr. Murphy opined that NBRL could improve their TMS 8 treatment procedures, and offered suggestions on improving the treatment of his 9 son. At no time did NBRL, however, disclose any trade secret information 10 concerning treatment procedures including, but not limited to, any computer 11 algorithms involved in determining the appropriate frequency of alpha waves to 12 use on particular patients. 13 14. During 2014, representatives of NBRL approached Dr. Murphy about 14 working together, and discussed a potential service agreement for EEG reads and 15 protocols, working as a vendor, not a partner, for Dr. Murphy. Specifically, NBRL 16 sought to take advantage of Dr. Murphy’s connections to the medical research and 17 academic community, particularly his position with UCSD. However, Dr. Murphy 18 never entered into a formal business relationship with NBRL. 19 C. 20 The Del Mar Neuro Center 15. As a part of his own medical practice and research, Dr. Murphy 21 arranged for a practice space called the “Del Mar Neuro Center,” a treatment center 22 designed to specialize in PTSD clinical trials, including use of TMS for the 23 treatment of PTSD as well as other neurocognitive disorders. As part of 24 developing the Del Mar Neuro Center, Dr. Murphy procured donors to help in 25 funding. One such donor paid the rent for the entire Del Mar Neuro Center space 26 for Dr. Murphy. 27 16. 28 During this time and thereafter, Dr. Murphy developed his own separate and independently-derived proprietary database and trade secret -5CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 6 of 15 Page ID #:438 1 proprietary protocols for treating patients with TMS. Dr. Murphy developed this 2 database and related protocols independently and without consultation with 3 Counter-Defendants, such was independently created, and possesses unique 4 independent economic value critical to the nature of the underlying technology and 5 businesses relying on same. Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 6 17. NBRL also occupied a portion of the Del Mar Neuro Center, renting 7 a separate adjoining office space to also run its own PTSD clinical trials. Dr. 8 Murphy was not involved in NBRL’s trials or treatment, was not involved with 9 NBRL’s operations, received no compensation from NBRL, was not doctor of 10 record for those treated in NBRL’s separate facility, and did not share or otherwise 11 have access to NBRL’s computer systems or treatment protocols during this time 12 or at any other time. 13 D. 14 Counter-Defendants Actions Against Dr. Murphy 18. During the time that Dr. Murphy was developing PeakLogic, his 15 business entity created to treating patients with TMS using his own developed 16 protocols, Dr. Murphy encountered professionals in the medical and venture 17 community who informed Dr. Murphy that Counter-Defendants made patently 18 false and slanderous per se statements to disparage Dr. Murphy, claiming, among 19 other falsehoods, that Dr. Murphy stole intellectual property from Counter- 20 Defendants, that Dr. Murphy’s science and practice are poor quality and/or unsafe, 21 and warning others to avoid Dr. Murphy so as to allow themselves to allegedly 22 avoid lawsuits. Based on information and belief, Counter-Defendants have 23 attempted to “scare away” investors in Dr. Murphy’s business entities through 24 these slanderous claims, causing several investors and millions of dollars in 25 investment capital from walking away from investing, including investors in the 26 Seattle, Washington, and Dallas, Texas areas. For example, one investor had 27 offered to invest $60 million into a new neuroscience center to be directed by Dr. 28 Murphy. Based on information and belief, this investor, among others, withdrew -6CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 7 of 15 Page ID #:439 1 an investment offer as a result of the falsehoods spread by Counter-Defendants. 2 As a result of the aforementioned defamation, Dr. Murphy has lost income, 3 revenue, and profits, including, but not limited to, lost business opportunities and 4 lost patient revenue. Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 5 19. Dr. Murphy has also contacted members of the military and related 6 government contractors, specifically persons associated with the United States 7 Special Operations Command (“SOCOM”), about developing treatment for 8 SOCOM soldiers and other military veterans. These persons associated with 9 SOCOM have expressed concern with Dr. Murphy about rumors spread by 10 Counter-Defendants, including, but not limited to, claims that Dr. Murphy stole 11 intellectual property from Counter-Defendants, that Dr. Murphy’s science and 12 practice are poor quality and/or unsafe, not to “touch” Dr. Murphy with a ten-foot 13 pole, and warning others to avoid Dr. Murphy to avoid lawsuits. As a result of the 14 aforementioned defamation, Dr. Murphy has lost income, revenue, and profits, 15 including, but not limited to, lost business opportunities and lost patient revenue, 16 and has permanently and significantly damaged Dr. Murphy’s reputation with the 17 military, a significant source of income for Dr. Murphy’s practice and priceless 18 research for the sake of helping injured veterans and others suffering from PTSD. 19 20. In 2017, Dr. Murphy entered into a confidential contract with the 20 United States Navy Sea, Air, and Land Teams, commonly abbreviated as Navy 21 SEALs. This contract must be renewed by the parties every year. Based on 22 information and belief, Dr. Murphy is now aware that representatives of Counter- 23 Defendants have spread false rumors to the Navy SEALs that have attempted to 24 damage and/or damaged Dr. Murphy’s relationship to throw the prospective 25 renewal of the contract into jeopardy. 26 21. Dr. Murphy is aware that sometime in 2018, UCSD started an 27 investigation into Dr. Murphy based on unsubstantiated rumors concerning his 28 practice. Based on information and belief, the source of these rumors is Counter-7CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 8 of 15 Page ID #:440 1 Defendants, who spread false and harmful rumors concerning Dr. Murphy’s 2 reputation, treatment, and character in a deliberate attempt to harm his academic 3 standing and misappropriate his business contacts. Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 4 22. Most recently, during 2019, Counter-Defendants have made 5 statements heard by individuals who were clients/potential clients of Dr. Murphy, 6 business partners/potential business partners of Dr. Murphy, patients/potential 7 patients of Dr. Murphy, and/or individuals affiliated with UCSD to the effect that 8 Dr. Murphy improperly obtained equipment from UCSD, improperly obtained 9 technology from NBRL, and, that Dr. Murphy was unable to read and interpret 10 EEGs. Specifically, it has been learned that these statements were made by 11 individuals who represented themselves to be affiliated with NBRL and/or NBRL 12 V and whose identities will be ascertained via discovery, and were made to Jaryd 13 Stein, M.D., and, Marshall Payne of CIC Partners. NBRL personnel made 14 statements to Robin King, CEO of the Navy Seal Foundation, to not “touch [Dr. 15 Murphy] with a 10-foot-pole.” NBRL personnel made statements to Tim Ringo of 16 SOCOM that Dr. Murphy stole NBRL’s technology. It is believed that individuals 17 affiliated with NBRL made similar statements to other third party individuals, to be 18 further determined. 19 FIRST CLAIM FOR RELIEF 20 (Slander Per Se, Cal. Civil Code § 46, by Dr. Murphy against all Counter- 21 Defendants) 22 23 24 23. Dr. Murphy incorporates the allegations of each foregoing paragraphs as though fully set forth herein. 24. As set forth above, at various times until the filing of this action, and 25 at additional times thereafter, Counter-Defendants made statements heard by 26 members of the medical, research, or academic community of or concerning Dr. 27 Murphy and his medical practice, in particular the following: that Dr. Murphy stole 28 intellectual property from Counter-Defendants, that Dr. Murphy’s science and -8CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 9 of 15 Page ID #:441 1 practice are poor quality and/or unsafe, not to “touch” Dr. Murphy with a ten-foot 2 pole, and warning others to avoid Dr. Murphy to avoid lawsuits. Such utterances 3 are false, defaming on their faces, and are intended by Counter-Defendants to be 4 believed so as to convince all persons hearing them that Dr. Murphy was, among 5 other things, dishonest, unethical, a poor medical doctor, and otherwise of ill 6 business repute. 7 25. It is understood on information and belief that most recently during 8 2019, Counter-Defendants have made statements heard by individuals who were 9 clients/potential clients of Dr. Murphy, business partners/potential business 10 partners of Dr. Murphy, patients/potential patients of Dr. Murphy, and/or 11 individuals affiliated with UCSD to the effect that Dr. Murphy improperly 12 obtained equipment from UCSD, improperly obtained technology from NBRL, 13 and, that Dr. Murphy was unable to read and interpret EEGs. 14 26. These utterances spoken by Counter-Defendants were slanderous per 15 se because they tend to injure Dr. Murphy in his office, profession, trade, and 16 business by imputing upon him a general disqualification in those respects that his 17 office and occupation generally requires, and by imputing dishonesty and lack of 18 integrity in his business dealings, which has a natural tendency to lessen Dr. 19 Murphy’s business profits. 20 21 22 23 24 27. As a result of the above-described words and conduct, Dr. Murphy has suffered general damages to his reputation. 28. As a further and proximate result of the above-described words, Dr. Murphy has suffered special damages according to proof at trial. 29. The above-described utterances were spoken by Counter-Defendants 25 with malice and oppression and with the intent to cause injury to Dr. Murphy 26 without any legitimate business reason for these words to be spoken. The actions 27 of Counter-Defendants were thus despicable, malicious, oppressive, and 28 fraudulent, entitling Dr. Murphy to recovery of exemplary and punitive damages in -9CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 10 of 15 Page ID #:442 1 2 30. Because of the damage to Dr. Murphy’s reputation from Counter- 3 Defendants’ false statements, Dr. Murphy cannot be fully and/or fairly 4 compensated by monetary relief, and is entitled to permanent injunctive relief to 5 prevent Counter-Defendants from continuing their wrongful and harmful conduct. 6 Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 an amount to be determined at trial. 31. Dr. Murphy suffered harm as a result of Counter-Defendants’ 7 conduct, and therefore seeks (a) preliminary, equitable and declaratory relief as 8 may be appropriate, (b) the sum of the actual damages suffered and the profits 9 obtained by Counter-Defendants as a result of their unlawful conduct, (c) punitive 10 damages, (d) reasonable costs and fees, and, (e) injunctive relief to prohibit 11 Counter-Defendants from further wrongful conduct. 12 SECOND CLAIM FOR RELIEF 13 (Tortuous Interference with Contract, by Dr. Murphy against all Counter- 14 Defendants) 15 16 17 32. Dr. Murphy incorporates the allegations of each foregoing paragraphs as though fully set forth herein. 33. Dr. Murphy entered into contracts and agreements with third-parties 18 to provide medical services, and with UCSD, to provide research and academic 19 services. 20 34. Counter-Defendants had knowledge of the contracts between Dr. 21 Murphy and the third-parties, and sought to undermine, sabotage, or otherwise 22 interfere with the contracts. 23 35. Counter-Defendants intentionally reached out to the third-parties, 24 spreading false statements concerning Dr. Murphy, among other acts, in an effort 25 to cause the third-parties to breach their agreements with Dr. Murphy. 26 36. It is understood on information and belief that most recently during 27 2019, Counter-Defendants have made statements heard by individuals who were 28 clients/potential clients of Dr. Murphy, business partners/potential business -10CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 11 of 15 Page ID #:443 1 partners of Dr. Murphy, patients/potential patients of Dr. Murphy, and/or 2 individuals affiliated with UCSD to the effect that Dr. Murphy improperly 3 obtained equipment from UCSD, improperly obtained technology from NBRL, 4 and, that Dr. Murphy was unable to read and interpret EEGs. 5 As a direct and proximate cause of Counter-Defendants’ wrongful 6 conduct, these third-parties breached their contracts with Dr. Murphy or otherwise 7 failed to perform. 8 9 Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 37. 38. As a direct and proximate result of NBRL’s wrongful conduct, Dr. Murphy has suffered damage, including, but not limited to, costs and expenses 10 relocating his office to and from the Del Mar Neuro Center, loss of income, 11 business opportunity, damage to business opportunity and reputation, and 12 goodwill, all in amounts in excess of the jurisdictional minimum of this Court to be 13 determined at trial. 14 39. In doing the acts and omissions alleged herein, NBRL’s conduct was 15 despicable, and NBRL acted towards Dr. Murphy with malice, oppression, and 16 fraud, and with a willful and conscious disregard of Dr. Murphy’s rights, entitling 17 Dr. Murphy to an award of exemplary and punitive damages. 18 THIRD CLAIM FOR RELIEF 19 (Intentional Interference with Prospective Economic Advantage, by Dr. 20 Murphy against all Counter-Defendants) 21 22 23 40. Dr. Murphy incorporates the allegations of each foregoing paragraphs as though fully set forth herein. 41. As described above, Dr. Murphy had valuable prospective economic 24 relationships and business opportunities with which it had a reasonable expectancy 25 of deriving future economic gain with third-parties, including, but not limited to, 26 relationships with potential investors, UCSD, and the United States military and 27 related military contractors. At all relevant times, Counter-Defendants were aware 28 of those relationships, and knew that their wrongful actions would do great damage -11CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 12 of 15 Page ID #:444 1 to those relationships. Counter-Defendants, through the wrongful acts alleged 2 herein, acted to wrongfully, knowingly, and intentionally interfere with and destroy 3 or harm Dr. Murphy’s prospective business relationships. 4 It is understood on information and belief that most recently during 5 2019, Counter-Defendants have made statements heard by individuals who were 6 clients/potential clients of Dr. Murphy, business partners/potential business 7 partners of Dr. Murphy, patients/potential patients of Dr. Murphy, and/or 8 individuals affiliated with UCSD to the effect that Dr. Murphy improperly 9 obtained equipment from UCSD, improperly obtained technology from NBRL, 10 Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 42. 11 and, that Dr. Murphy was unable to read and interpret EEGs 43. Counter-Defendants’ actions, and each of them, was intentional and 12 designed for the purpose of interfering with Dr. Murphy’s relationships prospective 13 relationships. 14 44. Counter-Defendants’ acts as alleged herein have actually interfered 15 with and disrupted Dr. Murphy’s relationships and prospective relationships, and 16 those acts, which were designed to interfere with and disrupt those relationships, 17 have been a substantial factor in causing Dr. Murphy harm through the loss of 18 prospective economic advantage. Specifically, Counter-Defendants, through 19 words and conduct, acted to damage Dr. Murphy’s reputation with prospective 20 clients, contracts, and patients in an effort to damage his business and take these 21 clients, contracts, and patients for themselves. 22 45. As a direct and proximate result of Counter-Defendants’ wrongful 23 conduct, Dr. Murphy has suffered damage, including, but not limited to, costs and 24 expenses relocating his office to and from the Del Mar Neuro Center, loss of 25 income, business opportunity, damage to business opportunity and reputation, and 26 goodwill, all in amounts in excess of the jurisdictional minimum of this Court to be 27 determined at trial. 28 46. In doing the acts and omissions alleged herein, Counter-Defendants’ -12CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 13 of 15 Page ID #:445 1 conduct was despicable, and Counter-Defendants acted towards Dr. Murphy with 2 malice, oppression, and fraud, and with a willful and conscious disregard of Dr. 3 Murphy’s rights, entitling Dr. Murphy to an award of exemplary and punitive 4 damages. 5 47. Because of the damage to Dr. Murphy’s reputation from Counter- 6 Defendants’ false statements, Dr. Murphy cannot be fully and/or fairly 7 compensated by monetary relief, and is entitled to permanent injunctive relief to 8 prevent Counter-Defendants from continuing their wrongful and harmful conduct. 9 FOURTH CLAIM FOR RELIEF 10 (Negligent Interference with Prospective Economic Advantage, by Dr. 11 Murphy against all Counter-Defendants) 12 13 14 48. Dr. Murphy incorporates the allegations of each foregoing paragraphs as though fully set forth herein. 49. As described above, Dr. Murphy had valuable prospective economic 15 relationships and business opportunities with which it had a reasonable expectancy 16 of deriving future economic gain with third-parties, including, but not limited to, 17 relationships with potential investors, UCSD, and the United States military and 18 related military contractors. At all relevant times, Counter-Defendants were aware 19 of those relationships, and knew that their wrongful actions would do great damage 20 to those relationships. Counter-Defendants, through the wrongful acts alleged 21 herein, acted to wrongfully and negligently interfere with and destroy or harm Dr. 22 Murphy’s prospective business relationships. 23 50. Counter-Defendants’ acts as alleged herein have actually interfered 24 with and disrupted Dr. Murphy’s relationships and prospective relationships, and 25 those acts, which were designed to interfere with and disrupt those relationships, 26 have been a substantial factor in causing Dr. Murphy harm through the loss of 27 prospective economic advantage. Specifically, Counter-Defendants, through 28 words and conduct, acted to damage Dr. Murphy’s reputation with prospective -13CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 14 of 15 Page ID #:446 1 clients, contracts, and patients in an effort to damage his business and take these 2 clients, contracts, and patients for themselves. 3 51. 4 2019, Counter-Defendants have made statements heard by individuals who were 5 clients/potential clients of Dr. Murphy, business partners/potential business 6 partners of Dr. Murphy, patients/potential patients of Dr. Murphy, and/or 7 individuals affiliated with UCSD to the effect that Dr. Murphy improperly 8 obtained equipment from UCSD, improperly obtained technology from NBRL, 9 and, that Dr. Murphy was unable to read and interpret EEGs. 10 Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 It is understood on information and belief that most recently during 52. As a direct and proximate result of Counter-Defendants’ wrongful 11 conduct, Dr. Murphy has suffered damage, including, but not limited to, costs and 12 expenses relocating his office to and from the Del Mar Neuro Center, loss of 13 income, business opportunity, damage to business opportunity and reputation, and 14 goodwill, all in amounts in excess of the jurisdictional minimum of this Court to be 15 determined at trial. 16 53. In doing the acts and omissions alleged herein, Counter-Defendants’ 17 conduct was despicable, and Counter-Defendants acted towards Dr. Murphy with 18 malice, oppression, and fraud, and with a willful and conscious disregard of Dr. 19 Murphy’s rights, entitling Dr. Murphy to an award of exemplary and punitive 20 damages. 21 54. Because of the damage to Dr. Murphy’s reputation from Counter- 22 Defendants’ false statements, Dr. Murphy cannot be fully and/or fairly 23 compensated by monetary relief, and is entitled to permanent injunctive relief to 24 prevent Counter-Defendants from continuing their wrongful and harmful conduct. 25 /// 26 /// 27 /// 28 /// -14CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM Case 8:18-cv-01625-JLS-JDE Document 41 Filed 08/01/19 Page 15 of 15 Page ID #:447 1 2 3 PRAYER FOR RELIEF WHEREFORE, Dr. Murphy prays for judgment against Counter-Defendants as follows: 4 1. For general and special damages according to proof; 5 2. Preliminary, equitable and declaratory relief as may be appropriate; 6 3. For fees and costs; 7 4. For exemplary and punitive damages; and, 8 5. For such other and further relief as the Court may deem just and 9 proper. JURY TRIAL DEMAND Gordon Rees Scully Mansukhani, LLP 633 West Fifth Street, 52nd floor Los Angeles, CA 90071 10 11 12 In accordance with the Federal Rules of Civil Procedure 38(b), Dr. Murphy demands a trial by jury on all issues so triable. 13 14 15 Respectfully submitted, Dated: August 1, 2019 16 GORDON REES SCULLY MANSUKHANI, LLP 17 18 By: /s/ John P. Cogger Craig J. Mariam John P. Cogger Samuel B. Laughlin Attorneys for Defendant and Counterclaimant Kevin Murphy, M.D. 19 20 21 22 23 24 25 26 27 28 -15CASE NO. 8:18-cv-01625-JLS-JDE COUNTERCLAIM