SCO Grp v. Novell Inc

Filing 388

MEMORANDUM in Support re 387 MOTION to Dismiss Voluntarily Its Third Claim for Relief filed by Defendant Novell, Inc.. (Sneddon, Heather)

Case 2:04-cv-00139-DAK-BCW
SCO Grp v. Novell Inc

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Filed 08/24/2007

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MORRISON & FOERSTER LLP Michael A. Jacobs, pro hac vice Eric M. Acker, pro hac vice Kenneth W. Brakebill, pro hac vice Marc J. Pernick, pro hac vice David E. Melaugh, pro hac vice 425 Market Street San Francisco, CA 94105-2482 Telephone: [phone] Facsimile: [phone] ANDERSON & KARRENBERG Thomas R. Karrenberg, #3726 John P. Mullen, #4097 Heather M. Sneddon, #9520 700 Chase Tower 50 West Broadway Salt Lake City, UT 84101 Telephone: [phone] Facsimile: [phone] Attorneys for Defendant and Counterclaim-Plaintiff Novell, Inc.

IN THE UNITED STATES DISTRICT COURT DISTRICT OF UTAH, CENTRAL DIVISION

THE SCO GROUP, INC., a Delaware corporation, Plaintiff and CounterclaimDefendant, v. NOVELL, INC., a Delaware corporation, Defendant and CounterclaimPlaintiff.

MEMORANDUM IN SUPPORT OF NOVELL'S MOTION TO VOLUNTARILY DISMISS ITS THIRD CLAIM FOR RELIEF Case No. 2:04CV00139 Judge Dale A. Kimball

Dockets.Justia.com

Case 2:04-cv-00139-DAK-BCW

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BACKGROUND In the wake of the Court's August 10 Memorandum Decision and Order, the parties have met and conferred and have considerably narrowed the issues for trial. The parties have agreed that Novell shall dismiss its First, Second, and Fifth Claims, as well as any claim for punitive damages, subject only to a right to renew such claims should there be any subsequent adjudication or trial in this action or any enlargement of the issues for trial beyond that contemplated by the August 17, 2007 Joint Statement. Novell has sought SCO's consent to also dismiss Novell's Third Claim, for breach of contract, under the same terms. SCO will not consent, necessitating this motion seeking leave to dismiss the claim pursuant to Federal Rule of Civil Procedure 41(a)(2). Voluntary dismissal is appropriate here. The Court's August 10 Order has given Novell the bulk of the relief Novell sought under this Claim, interpreting the APA in most respects in the fashion advocated by Novell. What remains of the Third Claim is essentially duplicative of the remaining claims, and seeks the same equitable relief as those claims. Dismissing the Third Claim will further streamline this matter. ARGUMENT I. VOLUNTARY DISMISSAL UNDER RULE 41 IS APPROPRIATE. Federal Rule of Civil Procedure 41(a)(2) grants the Court authority to dismiss claims, at the request of the claimant, "upon such terms and conditions as the court deems proper." Dismissal of Novell's Third Claim is appropriate here. The Court's August 10 Order, though it concerns motions on other claims, resolves many of the issues arising under Novell's Third Claim. In light of the Court's Order and in light of the considerably narrowed scope of trial, Novell's Third Claim is simpl y duplicative. As explained in Novell's Motion to Strike SCO's Jury Demand, filed herewith, the issues and remedies remaining for trial are fundamentally equitable, and arise under Novell's Fourth, Sixth, Seventh, Eighth Claims for Relief. Novell can obtain the only remedies it now seeks by way of these other remaining claims. Leaving the breach claim will only serve to complicate matters.

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"Absent `legal prejudice' to the defendant, the district court normally should grant [a Rule 41 voluntary] dismissal." Ohlander v. Larson, 114 F.3d 1531, 1537 (10th Cir. 1997). The parameters of what constitutes "legal prejudice" are not entirely clear, but relevant factors the district court should consider include: the opposing party's effort and expense in preparing for trial; excessive delay and lack of diligence on the part of the movant; insufficient explanation of the need for a dismissal; and the present stage of litigation. Each factor need not be resolved in favor of the moving party for dismissal to be appropriate, nor need each factor be resolved in favor of the opposing party for denial of the motion to be proper. Id. Here, although the stage of litigation is considerably advanced, SCO has not engaged in any "effort or expense" that will go to waste with dismissal of this claim. Dismissal will serve the goal of simplifying this matter, making it more appropriate for a streamlined bench trial. And even if the Court does not grant Novell's Motion to Strike SCO's Jury Demand, dismissal of this claim will reduce the number and complexity of claims that go to the jury, eliminating the need for separate jury instructions. II. NOVELL DOES NOT SEEK A GENERAL DISMISSAL WITHOUT PREJUDICE, ONLY A NARROW RIGHT TO RENEW THE CLAIM. Though the Court is authorized to dismiss claims without prejudice under Rule 41 (and that is in fact the default), Novell seeks only considerably more narrow rights here. Pursuant to the terms of the dismissal described in the proposed order filed herewith, Novell shall only have the right to renew its Third Claim should there be any subsequent adjudication or trial in this action or any enlargement of the issues for trial beyond that contemplated by the parties' August 17, 2007 Joint Statement. Absent such a subsequent adjudication or enlargement, Novell would have no right to renew this Claim.

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CONCLUSION For the reasons stated above, Novell requests that the Court permit Novell to dismiss its Third Claim for Relief under the terms detailed in the accompanying proposed order. DATED: August 24, 2007 ANDERSON & KARRENBERG

By: /s/ Heather M. Sneddon________ Thomas R. Karrenberg John P. Mullen Heather M. Sneddon -andMORRISON & FOERSTER LLP Michael A. Jacobs, pro hac vice Eric M. Acker, pro hac vice Kenneth W. Brakebill, pro hac vice Marc J. Pernick, pro hac vice David E. Melaugh, pro hac vice Attorneys for Defendant and Counterclaim-Plaintiff Novell, Inc.

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CERTIFICATE OF SERVICE I HEREBY CERTIFY that on this 24th day of August, 2007, I caused a true and correct copy of the MEMORANDUM IN SUPPORT OF NOVELL'S MOTION TO VOLUNTARILY DISMISS ITS THIRD CLAIM FOR RELIEF to be served to the following: Via CM/ECF: Brent O. Hatch Mark F. James HATCH JAMES & DODGE, P.C. 10 West Broadway, Suite 400 Salt Lake City, Utah 84101 Stuart H. Singer William T. Dzurilla Sashi Bach Boruchow BOIES, SCHILLER & FLEXNER LLP 401 East Las Olas Blvd., Suite 1200 Fort Lauderdale, Florida 33301 David Boies Edward J. Normand BOIES, SCHILLER & FLEXNER LLP 333 Main Street Armonk, New York 10504 Devan V. Padmanabhan John J. Brogan DORSEY & WHITNEY, LLP 50 South Sixth Street, Suite 1500 Minneapolis, Minnesota 55401 Via U.S. Mail, postage prepaid: Stephen Neal Zack BOIES, SCHILLER & FLEXNER LLP 100 Southeast Second Street, Suite 2800 Miami, Florida 33131 /s/ Heather M. Sneddon