Opticurrent, LLC v. Power Integrations, Inc. et al

Filing 397

ORDER by Judge Edward M. Chen Granting 384 Defendant's Motion to Stay Execution of Judgment. (emcsec, COURT STAFF) (Filed on 4/6/2021)

Case 3:17-cv-03597-EMC Document 397 Filed 04/06/21 Page 1 of 2

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UNITED STATES DISTRICT COURT

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NORTHERN DISTRICT OF CALIFORNIA

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OPTICURRENT, LLC,

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Plaintiff,

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v.
POWER INTEGRATIONS, INC., et al.,

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United States District Court
Northern District of California

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Defendants.

Case No. 17-cv-03597-EMC
ORDER GRANTING DEFENDANT’S
MOTION TO STAY EXECUTION OF
JUDGMENT
Docket No. 384

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Pending before the Court is Power Integrations, Inc.’s (“PI’s”) motion to stay the execution

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of the judgment against it pending its appeal of this Court’s order denying its motion for a new

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trial under Federal Rule of Civil Procedure 60. See Docket No. 384 (“Stay Mot.”).

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Under Federal Rule of Civil Procedure 62(b) (formerly 62(d)), “[a]t any time after

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judgment is entered, a party may obtain a stay by providing a bond or other security.” Fed R. Civ.

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P. 62(b). A supersedeas bond ensures that the appellee—in this case Opticurrent, LLC

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(“Opticurrent”)—will be able to collect the judgment plus interest should the court of appeals

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affirm the judgment. See Rachel v. Banana Republic, Inc., 831 F.2d 1503, 1505 n.1 (9th Cir.

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1987) (“The purpose of a supersedeas bond is to secure the appellees from a loss resulting from

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the stay of execution and a full supersedeas bond should therefore be required.”). Therefore, when

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a party posts a supersedeas bond with the district court in compliance with Rule 62(b), “it [is]

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entitled to a stay as a matter of right.” Bennett v. Franklin Res., Inc., 360 F. Supp. 3d 972, 977

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(N.D. Cal. 2018) (quoting Am. C.L. Union of Nev. v. Masto, 670 F.3d 1046, 1066 (9th Cir. 2012));

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see also Matter of Combined Metals Reduction Co., 557 F.2d 179, 193 (9th Cir. 1977) (“Since no

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bond was posted, the grant or denial of the stays was a matter strictly within the judge’s

Case 3:17-cv-03597-EMC Document 397 Filed 04/06/21 Page 2 of 2

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discretion.”).
Here, PI has obtained a supersedeas bond equal to 125% of Opticurrent’s $1,199,987

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award, i.e., $1,499,959.08, plus 125% of subsequent royalties. See Docket No. 394-2 (Decl. of

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Michael R. Headley in Supp. of Renewed Mot. to Stay Execution, Ex. A (Bond No. 3484412)).

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The total amount of the bond is $1,943,105.86, and the bond specifies that it is undertaken

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“pending appeal from Rule 60 order.” Id. Therefore, PI is entitled to a stay of the judgment’s

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execution because “the funds deposited with the Court [are] sufficient to protect [Opticurrent]

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from loss while the execution is stayed.” Rachel, 831 F.3d at 1505 n.1.

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Opticurrent argues that this Court should deny the stay under In re Zapata Gulf Marine
Corporation, 941 F.2d 293 (5th Cir. 1991)—a 1991 Fifth Circuit case—because “where a case is

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United States District Court
Northern District of California

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transferred under 28 U.S.C. § 1404, the choice of law rules that would have been applied by the

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transferor court—here, the Eastern District of Texas—are applied.” See Docket No. 387

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(“Opp’n”). But § 1404(a) does not require this Court to apply Fifth Circuit law because whether

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to stay the execution of the judgment pending appeal is a question of federal law, not state law.

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See Ferens v. John Deere Co., 494 U.S. 516, 523 (1990) (“First, § 1404(a) should not deprive

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parties of state-law advantages that exist absent diversity jurisdiction.” (emphasis added)).

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Indeed, this Court’s application of Rule 62(b)—a federal rule of civil procedure—has nothing to

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do with Texas or California state law. As a result, the aforementioned Ninth Circuit law governs

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this motion. See Tennant Co. v. Hako Minuteman, Inc., 878 F.2d 1413, 1416 (Fed. Cir. 1989)

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(“On a procedural issue, this court applies the law of the regional circuit to which district court

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appeals normally lie, unless the issue pertains to or is unique to patent law.”).

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Accordingly, the Court GRANTS PI’s motion to stay the execution of the judgment in this
case until its appeal of this Court’s Rule 60 motion is decided.

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This order disposes of Docket No. 384.

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IT IS SO ORDERED.

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Dated: April 6, 2021
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EDWARD M. CHEN
United States District Judge
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