LOS ANGELES – Troutman Pepper Locke secured a complete victory on behalf of AOK Tooling Limited (AOK), a Shenzhen, China-based manufacturer of N95 masks, following five years of litigation, a bench trial, and two successive appeals before the California Court of Appeal’s Second Appellate District in Los Angeles.
In November 2020, AOK contracted with Los Angeles retailer Stop C-19, LLC, to supply 50 million N95 masks with Stop C-19’s logo printed on them. The custom logo required National Institute for Occupational Safety and Health approval, but when that process proved lengthy, Stop C-19 directed AOK to deliver the masks anyway, despite the presence of the unapproved logo. Stop C-19 argued that it had paid AOK for masks that were illegal to sell in the U.S. and sued AOK and affiliated individuals and entities in the Los Angeles Superior Court for fraud and numerous other tort, statutory, and equitable claims, seeking tens of millions of dollars in damages.
After a weeklong bench trial in September 2022, the trial court ruled in AOK’s favor on all claims except one, finding AOK liable for unjust enrichment of $2.3 million based on a theory Stop C-19 did not disclose until closing argument. The Troutman Pepper Locke team moved to vacate, arguing that unjust enrichment is not a recognized cause of action in California and cannot serve as a quasi-contractual claim when a contract governs the subject matter. The trial court agreed, vacated the judgment, and entered an amended judgment fully in AOK’s favor in November 2023.
Stop C-19 appealed the trial court’s amended judgment on all claims, and in May 2025, the Court of Appeal affirmed the judgment in AOK’s favor on all counts except unjust enrichment, which it reversed on a procedural technicality and reinstated the original damages award. The Troutman Pepper Locke team appealed again, and on July 28, 2026, the Court of Appeal ruled in AOK’s favor, agreeing that unjust enrichment is not a valid cause of action under California law when there is an existing contract in place. As a result, the $2.3 million judgment was eliminated entirely, and AOK prevailed on all claims.
The Troutman Pepper Locke team that secured this victory for AOK was led by Peter Villar, Bryan Sonksen, and Elizabeth Holt Andrews, with assistance from John Bradley.
Troutman Pepper Locke’s Business Litigation Practice has a successful track record defending and prosecuting high-stakes commercial matters in federal, state, trial, and appellate courts throughout the U.S. The firm’s nationally recognized Appellate and Supreme Court Practice also has the experience and insight to present compelling arguments to appellate courts at any level, and to work with trial counsel to best preserve issues for appeal. The firm regularly appears before the Supreme Court of the United States — in oral argument and on brief — winning several landmark cases.
Troutman Pepper Locke
Troutman Pepper Locke helps clients solve complex legal challenges and achieve their business goals in an ever-changing global economy. With more than 1,600 attorneys in 30+ offices, the firm serves clients in all major industry sectors, with particular depth in energy, financial services, health care and life sciences, insurance and reinsurance, private equity, and real estate. Learn more at troutman.com.