Sorensen v. Lexar Media, Inc.

Filing 229

Order Granting 203 Second Motion To Amend Pleadings. Signed by Hon. Edward J. Davila on 3/16/2012(ejdlc2, COURT STAFF) (Filed on 3/19/2012) Modified text on 3/19/2012 (ecg, COURT STAFF).

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1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 NORTHERN DISTRICT OF CALIFORNIA 9 SAN JOSE DIVISION United States District Court For the Northern District of California 10 11 JENS ERIK SORENSEN, Plaintiff, 12 13 14 15 16 ) ) ) ) ) ) ) ) ) ) v. LEXAR MEDIA, INC., Defendant. Case No.: 5:08-CV-0095 EJD ORDER GRANTING SECOND MOTION TO AMEND PLEADINGS (Re: Docket No. 203) Pending before the court is Defendant Lexar Media, Inc.’s (“Lexar”) motion for leave to 17 amend its pleadings to include defenses and a counterclaim. For the reasons discussed below, the 18 motion for leave to amend is GRANTED. 19 20 I. BACKGROUND On January 7, 2008, Plaintiff Jens Erik Sorensen (“Sorensen”) filed this patent infringement 21 action. On February 25, 2009, Judge Ware ordered the action be stayed pending the outcome of 22 reexamination proceedings before the United States Patent Office. On April 29, 2011, the action 23 was transferred to the undersigned. On July 26, 2011, the court lifted the stay in light of the 24 termination of the reexamination appeals. On November 1, 2011, the court issued a scheduling 25 order that the deadline for joinder of additional parties or other amendments to the pleadings is 26 27 28 1 Case No.: 5:08-CV-0095 EJD ORDER GRANTING SECOND MOTION TO AMEND PLEADINGS 1 sixty days after entry of the order, December 31, 2011.1 On December 30, 2011, Lexar filed this 2 motion for leave to amend its pleadings. 3 II. LEGAL STANDARDS “[A] party may amend its pleading only with the opposing party’s written consent or the 4 5 court’s leave. The court should freely give leave when justice so requires.” Fed. R. Civ. P. 15(a). 6 “[R]ule 15’s policy of favoring amendments to pleadings should be applied with extreme 7 liberality.” DCD Programs, Ltd. v. Leighton, 833 F.2d 183, 186 (9th Cir. 1987) (internal citations 8 and quotations omitted). In cases, however, where a party moves to amend or add a party after a 9 specific deadline for filing motions or amending the pleadings, the “good cause standard” for United States District Court For the Northern District of California 10 modification of a scheduling order under Rule 16(b) governs. See Johnson v. Mammoth 11 Recreations, Inc., 975 F.2d 604, 607-08 (9th Cir. 1992). 12 Here, Lexar sought to amend its pleadings and submitted its proposed amendment to the 13 court in advance of the deadline set by the court. The court therefore applies the more generous 14 Rule 15 standard. 15 III. DISCUSSION 16 Lexar seeks to amend its pleadings to add the defenses of release, discharge, covenant not 17 to sue, license, exhaustion, and lack of standing. Additionally, Lexar seeks to add the counterclaim 18 of breach of contract as a third party beneficiary to this agreement. These allegations relate to a 19 release agreement between Sorensen and one of Lexar’s suppliers that allegedly includes a broad 20 release, discharge and covenant not to sue — all of which apply to Lexar and the accused product 21 and process in this action. Lexar argues that it could not plead these defenses and counterclaim 22 earlier because Lexar only learned of the release agreement after Sorensen produced the agreement 23 on December 8, 2011. 24 25 Sorensen argues that the motion to amend should be denied because (1) Lexar failed to amend their pleadings within the time period allowed by the court; (2) the proposed new 26 1 27 28 December 31, 2011 was a Saturday. Pursuant to Fed. R. Civ. P. 6(a)(1), if a the last day of a period stated in days is a Saturday, the period continues to run until the end of the next day that is not a Saturday, Sunday, or a legal holiday. Thus, the deadline for joinder or amendments was January 3, 2012. 2 Case No.: 5:08-CV-0095 EJD ORDER GRANTING SECOND MOTION TO AMEND PLEADINGS 1 counterclaim and defenses would mandate the joinder of an additional party, and the deadline to do 2 so has passed; and (3) the proposed amendments would violate the Protective Order in this case by 3 making public contents of documents designated by Sorensen as “Highly Confidential — Counsel 4 Eyes Only.” 5 Sorensen’s first argument fails because this motion was filed before the deadline set by the court to amend the pleadings. Furthermore, even if Rule 16’s “good cause” standards applied, 7 Lexar’s recent discovery of the release agreement and its potential impact on this action would 8 satisfy that standard. Sorensen’s second argument fails because it has not cited any authority 9 demonstrating that new parties would be joined or that there would not be good cause to modify 10 United States District Court For the Northern District of California 6 the scheduling order to permit their joinder. Sorensen’s final argument fails because Sorensen has 11 not identified what confidential information Lexar has disclosed or in what manner. Sorensen has 12 not moved to seal any portion of Lexar’s briefs or proposed amendment in support of its motion to 13 amend. Additionally, the only documents specifically identified by Sorensen are “Exhibits 2 and 3 14 filed under seal.” Pl’s Opp’n at 5:17, ECF No. 206. Assuming Sorensen is referring to Exhibits 2 15 and 3 to the Declaration of John Beynon in support of Lexar’s motion, those documents are now 16 part of the public record because Sorensen failed to file a declaration establishing they are sealable 17 following Lexar’s motion to file the exhibits under seal pursuant to 79-5(d). See ECF No. 214. 18 Thus, in light of the generous standard in favor of amendments and the absence of any 19 20 21 22 23 demonstrated prejudice resulting from the amendment, IT IS HEREBY ORDERED that Lexar’s motion to amend its pleadings is GRANTED. Dated: March 16, 2012 _________________________________ EDWARD J. DAVILA United States District Judge 24 25 26 27 28 3 Case No.: 5:08-CV-0095 EJD ORDER GRANTING SECOND MOTION TO AMEND PLEADINGS

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