Justia Civil Procedure Opinion Summaries

Wanda Bowling entered into a contract with the Interstate Medical Licensure Compact Commission to manage its information technology functions. When the contract ended, Bowling allegedly withheld login information for three online accounts, leading the Commission to sue for breach of contract. Bowling counterclaimed for libel and misclassification of her employment status. The district court dismissed the misclassification counterclaim and granted summary judgment to the Commission on all other claims.The United States District Court for the District of Colorado dismissed Bowling's counterclaim for misclassification and denied her motion to amend it, citing untimeliness. The court also granted summary judgment to the Commission on its breach of contract claim, concluding that Bowling's login information constituted intellectual property and that she had breached the contract by not certifying the erasure of confidential information. The court awarded the Commission $956.67 in damages. Additionally, the court granted summary judgment on Bowling's libel counterclaim, citing a qualified privilege defense.The United States Court of Appeals for the Tenth Circuit reviewed the case. It affirmed the district court's finding of subject-matter jurisdiction, holding that the Commission had adequately alleged damages exceeding $75,000. However, the appellate court found that the contract was ambiguous regarding whether the login information constituted intellectual property or other materials covered by the contract, and that there was a genuine dispute of material fact regarding the damages. Therefore, it reversed the summary judgment on the breach of contract claim. The court also upheld the district court's denial of Bowling's motion to amend her counterclaim for misclassification, finding no abuse of discretion.On the libel counterclaim, the appellate court agreed that the district court erred in granting summary judgment based on a qualified privilege without giving Bowling notice. However, it affirmed the summary judgment on the grounds that the Commission's statements were substantially true. The case was affirmed in part, reversed in part, and remanded for further proceedings. View "Interstate Medical Licensure Compact Commission v. Bowling" on Justia Law

A physician in Puerto Rico, Dr. Jaime Salas Rushford, had his board certification suspended by the American Board of Internal Medicine (ABIM) after ABIM concluded that he had improperly shared board exam questions with his test prep instructor. ABIM sued Salas Rushford for copyright infringement in New Jersey. Salas Rushford counterclaimed against ABIM and several ABIM-affiliated individuals, alleging that the process leading to his suspension was a "sham."The counterclaims were transferred to the District of Puerto Rico, where the district court granted ABIM's motion for judgment on the pleadings and denied Salas Rushford leave to amend his pleading. The court found that Salas Rushford failed to state a claim for breach of contract, breach of the implied covenant of good faith and fair dealing, and tort claims against the ABIM Individuals. The court also dismissed his Lanham Act claim for commercial disparagement.The United States Court of Appeals for the First Circuit reviewed the case. The court affirmed the district court's dismissal of Salas Rushford's claims. It held that ABIM had broad discretion under its policies to revoke certification if a diplomate failed to maintain satisfactory ethical and professional behavior. The court found that Salas Rushford did not plausibly allege that ABIM acted with bad motive or ill intention, which is necessary to state a claim for breach of the implied covenant of good faith and fair dealing under New Jersey law.The court also affirmed the dismissal of the Lanham Act claim, noting that Salas Rushford failed to allege actual consumer deception or intentional deception, which is required to state a claim for false advertising. Finally, the court upheld the district court's denial of leave to amend the complaint, citing undue delay and lack of a concrete argument for why justice required an amendment. View "American Board of Internal Medicine v. Salas-Rushford" on Justia Law

The case involves the Wisconsin Alumni Research Foundation (WARF) and Apple Inc. WARF accused Apple of infringing U.S. Patent No. 5,781,752 (the '752 patent) with its A7 and A8 processors in a lawsuit filed in 2014 (WARF I). WARF later filed a second lawsuit (WARF II) accusing Apple's A9 and A10 processors of infringing the same patent. In WARF I, the jury found that Apple’s A7 and A8 processors literally infringed the '752 patent. However, Apple appealed, and the United States Court of Appeals for the Federal Circuit reversed the jury's verdict, finding that no reasonable jury could find literal infringement under the plain and ordinary meaning of the term "particular" as used in the patent claims.In the district court for WARF I, WARF had abandoned its doctrine-of-equivalents theory in exchange for Apple not presenting certain evidence at trial. After the Federal Circuit's reversal, WARF sought to reassert the doctrine-of-equivalents theory, but the district court denied this request, citing WARF's prior abandonment and the preclusive effect of the Federal Circuit's interpretation of "particular."In WARF II, the district court stayed proceedings pending the outcome of the appeal in WARF I. After the Federal Circuit's decision, WARF attempted to continue WARF II under the doctrine of equivalents. The district court found that WARF I precluded WARF from proceeding in WARF II, citing issue preclusion and the Kessler doctrine, which prevents repeated litigation of the same issue against the same party.The United States Court of Appeals for the Federal Circuit affirmed the district court's decisions in both WARF I and WARF II. The court held that WARF had waived its doctrine-of-equivalents theory in WARF I and that issue preclusion and the Kessler doctrine barred WARF II. The court concluded that the A7/A8 and A9/A10 processors were essentially the same for the purposes of preclusion and that literal infringement and the doctrine of equivalents are part of the same overall issue of infringement. View "WISCONSIN ALUMNI RESEARCH FOUNDATION v. APPLE INC. " on Justia Law

The plaintiff, Realtime Adaptive Streaming LLC, sued DISH and related Sling entities for alleged infringement of three patents related to digital data compression. The district court found the asserted claims of one patent ineligible as abstract under 35 U.S.C. § 101. Defendants filed motions to dismiss and for judgment on the pleadings, which the district court denied, opting to rehear invalidity arguments after claim construction. The district court later stayed the case pending inter partes review (IPR) proceedings, which resulted in some claims being found unpatentable. The stay was lifted after the IPR proceedings concluded, and the district court eventually granted summary judgment of invalidity for the remaining patent claims.The United States District Court for the District of Colorado awarded attorneys’ fees to the defendants, citing six "red flags" that should have warned Realtime that its case was flawed. These included prior court decisions finding similar claims ineligible, Board decisions invalidating related patent claims, non-final office actions rejecting claims in the reexamination of the patent at issue, a notice letter from DISH warning of potential fees, and expert opinions from DISH’s witness. The district court found that the totality of these circumstances rendered the case exceptional.The United States Court of Appeals for the Federal Circuit reviewed the district court’s decision and vacated the award of attorneys’ fees. The appellate court found that some of the red flags cited by the district court should not have been given weight, such as the Adaptive Streaming decision and the Board’s decisions on different patents. The court also noted that the district court failed to adequately explain how certain factors, like the notice letter and expert opinions, constituted red flags. The case was remanded for the district court to reconsider the attorneys’ fees award in light of the appellate court’s findings. View "REALTIME ADAPTIVE STREAMING LLC v. SLING TV, L.L.C. " on Justia Law

Platinum Optics Technology Inc. (PTOT) appealed a final written decision from the Patent Trial and Appeal Board (PTAB) regarding U.S. Patent No. 9,354,369, owned by Viavi Solutions Inc. The patent relates to optical filters with specific properties of hydrogenated silicon. PTOT challenged the patent's claims, arguing they were unpatentable due to obviousness based on prior art references. The PTAB ruled against PTOT, finding that the prior art did not render the claims unpatentable.Previously, Viavi had sued PTOT for patent infringement in two cases in the Northern District of California. The claims related to the '369 patent were dismissed with prejudice in both cases. PTOT then petitioned for inter partes review (IPR) of the '369 patent, leading to the PTAB's decision that PTOT failed to prove the claims were unpatentable.The United States Court of Appeals for the Federal Circuit reviewed the case. PTOT argued it had standing to appeal based on potential future infringement liability from continuing to supply bandpass filters and developing new models. However, the court found PTOT's arguments speculative and insufficient to establish an injury in fact. The court noted that the previous lawsuits were dismissed with prejudice, and PTOT did not provide concrete plans or specific details about new products that might infringe the '369 patent.The Federal Circuit dismissed the appeal, concluding that PTOT failed to demonstrate a substantial risk of future infringement or a likelihood that Viavi would assert a claim of infringement. Therefore, PTOT did not have standing to appeal the PTAB's decision. View "PLATINUM OPTICS TECHNOLOGY INC. v. VIAVI SOLUTIONS INC. " on Justia Law

Bruce Molzan, a well-known chef, filed a lawsuit against Bellagreen Holdings, LLC, and other associated entities and individuals, alleging trademark infringement and other claims under the Lanham Act and Texas law. Molzan claimed that he had been using the "RUGGLES" trademarks for over forty years and that the defendants misused these trademarks after a forced sale of his restaurants. He alleged that the defendants continued to use the "RUGGLES GREEN" trademark and domain name without authorization, causing consumer confusion.The United States District Court for the Southern District of Texas dismissed all of Molzan's claims under Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. The court found that Molzan's allegations were conclusory and did not establish a connection between the defendants and the third-party websites causing the confusion. The court also determined that the Settlement Agreement between the parties addressed the alleged infringements and provided a remedy for such transgressions.The United States Court of Appeals for the Fifth Circuit reviewed the case and found that Molzan's complaint contained well-pleaded factual allegations that made his claims facially plausible. The court noted that the allegations established a likelihood of confusion due to the defendants' continued use of the "RUGGLES" trademarks. The court also found that the district court erred in assuming the veracity of the defendants' assertions over Molzan's well-pleaded allegations. The Fifth Circuit reversed the district court's dismissal of Molzan's federal and state trademark infringement, false advertising, unfair competition, and state trademark dilution claims. The court also reversed the dismissal of Molzan's breach of contract and unjust enrichment claims and remanded the case for further proceedings. Additionally, the court vacated the district court's dismissal of the Web Defendants and the denial of Molzan's motion for leave to amend his complaint. View "Molzan v. Bellagreen Holdings" on Justia Law

Plaintiffs Marco Destin, Inc., 1000 Highway 98 East Corp., E&T, Inc., and Panama Surf & Sport, Inc. (collectively, “Marco Destin”) filed a lawsuit against agents of L&L Wings, Inc. (“L&L”), alleging that a 2011 stipulated judgment in a trademark action was obtained through fraud. Marco Destin claimed that L&L had fraudulently procured a trademark registration from the USPTO, which was used to secure the judgment. They sought to vacate the 2011 judgment under Federal Rule of Civil Procedure 60(d)(3) and requested sanctions and damages.The United States District Court for the Southern District of New York dismissed the action for failure to state a claim. The court found that Marco Destin had a reasonable opportunity to uncover the alleged fraud during the initial litigation. Specifically, the court noted that the License Agreement between the parties indicated that other entities might have paramount rights to the "Wings" trademark, suggesting that Marco Destin could have discovered the fraud with due diligence.The United States Court of Appeals for the Second Circuit reviewed the district court’s dismissal for abuse of discretion. The appellate court confirmed that the district court acted within its discretion in declining to vacate the 2011 stipulated judgment. The court emphasized that Marco Destin had a reasonable opportunity to uncover the alleged fraud during the initial litigation and that equitable relief under Rule 60(d)(3) requires a showing of due diligence. The appellate court found no abuse of discretion in the district court’s conclusion that Marco Destin could have discovered the fraud through proper diligence.The Second Circuit affirmed the judgment of the district court, upholding the dismissal of Marco Destin’s claims. View "Marco Destin, Inc. v. Levy" on Justia Law

Neu Cloud, a joint venture between IBM, TeamSun, and Zhuangyan Hao, alleged that IBM misappropriated its trade secrets. Neu Cloud claimed that IBM used confidential customer information, obtained through special bids submitted by Neu Cloud, to benefit a competing joint venture, INSPUR Power. This alleged misappropriation occurred between 2015 and 2018, leading to a significant decline in Neu Cloud's business.Neu Cloud initially filed a lawsuit in New York state court, asserting state-law claims such as unfair competition and breach of contract. The New York Supreme Court dismissed the state complaint on various grounds, including timeliness and lack of personal jurisdiction over IBM China. Shortly after, Neu Cloud filed a federal lawsuit in the United States District Court for the Southern District of New York, asserting a single cause of action under the Defend Trade Secrets Act (DTSA). The district court dismissed the federal complaint, ruling that the DTSA claim was both untimely and inadequately pleaded, and that there was no personal jurisdiction over IBM China.On appeal, the United States Court of Appeals for the Second Circuit reviewed the case. The court affirmed the district court's dismissal, but on the alternative ground of res judicata. The Second Circuit held that the New York Supreme Court's prior judgment barred Neu Cloud from asserting its DTSA claim in federal court. The court concluded that the state and federal claims arose from the same series of transactions and that the state court was competent to adjudicate the DTSA claim. Therefore, the judgment of the district court was affirmed on the basis of res judicata. View "Beijing Neu Cloud v. IBM Corp." on Justia Law

Koss Corporation (Koss) owns several patents related to wireless earphones. Koss filed a patent infringement lawsuit against Bose Corporation (Bose) in the Western District of Texas, alleging infringement of three patents. Bose challenged the venue and also filed for inter partes review (IPR) of the patents with the Patent Trial and Appeal Board (PTAB). Concurrently, Bose sought a declaratory judgment of noninfringement in the District of Massachusetts. The Texas court dismissed Koss's case for improper venue, leading Koss to file counterclaims in Massachusetts. The Massachusetts court stayed the case pending the IPR outcomes.In parallel, Koss's infringement action against Plantronics, Inc. was transferred to the Northern District of California. Plantronics moved to dismiss the case, arguing that the patents were invalid under 35 U.S.C. § 101. The California court agreed, invalidating all claims of the patents. Koss amended its complaint but eventually stipulated to dismiss the case with prejudice, without appealing the invalidation order.The United States Court of Appeals for the Federal Circuit reviewed the PTAB's decisions on the IPRs. However, since the California court had already invalidated all claims of the patents and Koss did not appeal this decision, the Federal Circuit found the appeals moot. The court held that the invalidation order from the California court was final and precluded any further action on the patents, leading to the dismissal of the appeals. View "KOSS CORPORATION v. BOSE CORPORATION " on Justia Law

Backertop Licensing LLC and Lori LaPray appealed the U.S. District Court of Delaware’s orders requiring LaPray to appear in-person for testimony regarding potential fraud and imposing monetary sanctions for her failure to appear. The District Court identified potential misconduct in numerous related patent cases involving IP Edge and Mavexar, which allegedly created shell LLCs, assigned patents for little consideration, and directed litigation without disclosing their ongoing rights. The court was concerned that this arrangement concealed the real parties in interest and potentially perpetrated fraud on the court.The District Court ordered LaPray, the sole owner of Backertop, to produce documents and appear in-person to address these concerns. LaPray moved to set aside the order, citing travel difficulties and requesting to appear telephonically, which the court denied. The court rescheduled the hearing to accommodate her schedule but maintained the requirement for in-person testimony to assess her credibility. LaPray did not attend the rescheduled hearing, leading the court to hold her in civil contempt and impose a daily fine until she appeared.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that the District Court’s orders were within its inherent authority and not an abuse of discretion. The court found that Federal Rule of Civil Procedure 45, which limits the geographic range of subpoenas, did not apply to the court’s sua sponte orders. The court affirmed the District Court’s orders, emphasizing the necessity of in-person testimony to investigate potential misconduct and assess credibility. The monetary sanctions for LaPray’s failure to appear were also upheld. View "BACKERTOP LICENSING LLC v. CANARY CONNECT, INC. " on Justia Law