Certusview Technologies, LLC v. S & N Locating Services, LLC et al

Filing 352

ORDER Denying 341 Motion for Summary Judgment. For the reasons set forth above, the Court DENIES Plaintiff's Motion for Summary Judgment, ECF No. 341. In light of such ruling, the Court CANCELS the hearing originally set for August 14, 2015 because oral argument would not aid in the decisional process. The Court DIRECTS counsel for the parties to contact the docket clerk within seven (7) days after the entry of this Memorandum Order to set the date for the bench trial in this matter.. Signed by District Judge Mark S. Davis and filed on 8/7/15. Copies distributed to all parties 8/7/15. (ldab, )

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UNITED STATES DISTRICT COURT EASTERN DISTRICT OF VIRGINIA Norfolk Division CERTUSVIEW TECHNOLOGIES, LLC, Plaintiff, Civil Action No. v. S&N LOCATING SERVICES, 2:13cv346 LLC, and S&N COMMUNICATIONS, INC., Defendants MEMORANDUM This Judgment, matter ECF ("Plaintiff"). is No. before 341, the Court filed by In such motion, ORDER on a CertusView Motion for Summary Technologies, LLC, Plaintiff seeks summary judgment on inequitable conduct counterclaims that S&N Locating Services, LLC, and S&N Communications, "S&N") Inc., (collectively "Defendants" or have asserted against Plaintiff. of the briefing on Plaintiff's motion, hearing for August 14, 2015. Prior to the submission the Court had scheduled a However, now that the matter is ripe for disposition, after examining the briefs and the record, the Court determines that oral argument the facts contentions and legal are is unnecessary because adequately presented oral argument would not aid in the decisional process. Civ. P. 78(b); E.D. Va. Loc. R. 7(J). Fed. and R. I. FACTUAL AND PROCEDURAL BACKGROUND1 This case began as a patent Plaintiff that asserted involve that infringement action in which Defendants technology for had the infringed prevention five of patents damage to underground infrastructure: U.S. Patent No. 8,290,204 ("the '204 patent"), Patent U.S. No. 8,265,344 Patent No. 8,340,359 ("the ("the '344 ("the '341 patent" and '344 asserted Plaintiff. '359 patent"), patents, Defendants 8,407,001 and, ("the '001 patent"), patent"), and U.S. Patent collectively with the "the Patent No. '204, conduct 2015, the No. 8,532,341 %001, patents-in-suit"). inequitable On January 21, U.S. U.S. '359, Thereafter, counterclaims against Court granted Defendants' motion for judgment on the pleadings and held that each of the asserted claims of the patents-in-suit were invalid because they did not Order, claim ECF judgment No. in claims. patent-eligible 250. favor Judgment, On of that subject same Defendants ECF No. on 251. matter. date, the Opinion Court Plaintiff's Thus, and entered infringement only Defendants' inequitable conduct counterclaims remain in this action. 1 The Court has set forth, at length, the factual and procedural history in this matter in its prior opinions granting Defendants' motion for judgment on the pleadings as to Plaintiff's infringement claims and granting in part and denying in part Plaintiff's motion to dismiss Defendants' inequitable conduct counterclaims. See CertusView Techs., LLC v. S&N Locating Servs., LLC, 2454277 (E.D. Va. May 22, 2015); icL< 269427 (E.D. Va. Jan. 21, 2015). F. Supp. 3d F. Supp. 3d , 2015 WL , 2015 WL After the Court granted Defendants' motion for judgment on the pleadings as to Plaintiff's infringement claims, initiated a two-fold Answer. Plaintiff challenge objected to to Defendants' the Plaintiff First magistrate Amended judge's Order granting Defendants leave to amend their answer and Plaintiff also moved to counterclaims. Order, ECF No. While First dismiss Defendants' See PL's Objections 256; PL's Mot. Plaintiff in this to conduct the Magistrate Judge's to Dismiss, contested Amended Answer inequitable ECF No. the sufficiency Court, Plaintiff 260. of Defendants' appealed to the United States Court of Appeals for the Federal Circuit from the Court's judgment on Plaintiff's infringement claims. Appeal, ECF No. 267. However, on May 15, 2015, Notice of the Federal Circuit stayed Plaintiff's appeal pending the Court's resolution of its challenges CertusView Techs., 1404, -1571 (Fed. to Defendants' First S&N Locating Servs., LLC v. Cir. May 15, 2015) (ECF No. Amended LLC, Answer. Nos. 2015- 324 on the Court's docket). On May 22, 2015, the Court and 2015 Order and granting in part and denying in part Plaintiff's motion Counterclaims. ECF No. Defendants' 325. That magistrate Order January 16, and the Opinion Plaintiff's dismiss to an overruling to objections issued First same judge's Amended day, the Answer Court directed the parties to submit status reports regarding how the Court should proceed to resolve Defendants' counterclaims. In either its status stay validity Order, the for ECF No. report, case 326. Plaintiff and inequitable conduct certify interlocutory requested the appeal issue or that of dismiss the Court Section 101 Defendants' inequitable conduct counterclaims without prejudice to refiling once the appeal. permit Federal Circuit issued In the alternative, Plaintiff Defendants' to summary judgment, mandate in Plaintiff's Plaintiff requested that the Court immediately inequitable its move conduct for summary judgment counterclaims. on Regarding Plaintiff made the following representation to the Court: While the Court concluded that S&N's pleading states a claim under Exergen Corp. v. Wal-Mart Stores, Inc., 575 F.3d 1312 (Fed. Cir. 2009), S&N cannot prove inequitable conduct under the heightened standard of Therasense, Inc. v. Bee ton, Dickinson & Co., 649 F.3d 1276 (Fed. Cir. 2011) or when a full set of undisputed facts are presented rather than the allegations in the amended answer. . . . PL's Status Report at 5 n.4, On June 30, 2015, ECF No. 328. the Court interlocutory appeal in this matter, 56(C), for the Court summary counterclaims. found good cause judgment on declined certify an but, pursuant to Local Rule to permit Defendants' Order, ECF No. 339. to Plaintiff inequitable to move conduct The Court set an expedited briefing schedule and set the matter for a hearing on August 14, 2015.2 On July 22, Defendants' 2015, Plaintiff moved for summary judgment on inequitable conduct counterclaims. support of its motion, Plaintiff In its brief in devotes roughly one double- spaced page to its statement of undisputed facts. Supp. Mot. for Summ. J. at 2-3, ECF No. 342. of undisputed facts, describes, Plaintiff PL's Mem. In such statement in broad terms, its patents and aspects of their prosecution history and states that "[t]rue and correct testimony" of Curtis Chambers, Jeffrey Farr, Joseph Teja, Jr., David Crawford, to Plaintiff's brief. facts omitted any Id. facts conduct allegations. summary judgment Plaintiff dedicates citations counterclaims. On motion. July In to See 29, facts id. brief conduct of 2015, its record inequitable description standard brief of to of the review, argue pertaining responded Defendants the Federal CertusView Techs., Cir. the Defendants Defendants' (Fed. in response, Court. -1571 a Defendants' the to such at 4-30. because 1404, remainder to inequitable conduct counterclaims—complete appeal docket). After inequitable 2015, their 2 On July 9, responsive the merits of Defendants' with Plaintiff's statement of undisputed Id. and and Gregory Block is attached to contend that remained pending LLC v. S&N Locating Servs., 9, 2015) the Court Circuit dismissed Plaintiff's counterclaims July Plaintiff's (ECF No. 340 LLC, on in Nos. the this 2015- Court's should deny Plaintiff's motion or, in the alternative, disregard all facts facts not stated because 56(B). in Plaintiff's such Mem. Defs.' statement did Opp'n Mot. statement not comply of with undisputed Local Rule for Summ. J. at 2-3, ECF No. 343. Specifically, Defendants note that Plaintiff's brief "is replete with factual citations (from which it argues) that are absent from its 'Undisputed Facts'" and contend that Plaintiff cannot satisfy Local Rule 56(B) by attempting to incorporate, entirety, deposition transcripts Teja, Crawford, and Block. On August dedicates merits the of opening 3, totality brief, such of its Chambers, filed its reply. reply to argument counterclaims. reply includes statement of Plaintiff Messrs. Farr, Id. at 3. Plaintiff Defendants' from Plaintiff's however, 2015, from in their does citations address Indeed, regarding with to undisputed facts. not regarding Local Rule 56(B). As Plaintiff the Plaintiff's facts In Defendants' its absent reply, contention Plaintiff does not, in any way, explain its apparent disregard for the Court's Local Rules. II. STANDARD OF Through the Rules Enabling Act, have granted the rules of Supreme Court practice States district and procedure courts . . . ." REVIEW Congress and the President "the power to prescribe general . . . for cases 28 U.S. C. in the United § 2072(a); see also id. § 2071(a). Pursuant to such authority, the Supreme Court has established the following rule: After giving comment, public notice and an opportunity for a district court, acting by a majority of its district judges, may adopt and amend rules governing its practice. A local rule must be consistent with—but not duplicate—federal statutes and rules adopted under 28 U.S.C. uniform §§ 2072 numbering Conference of the and 2075, and must system prescribed United States. conform by A the local to any Judicial rule takes effect on the date specified by the district court and remains in effect unless amended by the court or abrogated by the judicial council of the circuit. Copies of rules and amendments must, on their adoption, be furnished to the judicial council and the Administrative Office of the United States Courts and be made available to the public. Fed. R. Civ. P. 83(a) (1). In accordance with such rule, a majority of the district judges of this Court has adopted Local Rules. Local Rule 56(B) concerns summary judgment and provides: Each brief in support of a motion for summary judgment shall include a specifically captioned section listing all material facts as to which the moving party contends there is no genuine issue and citing the parts of the record relied on to support the listed facts as alleged to be undisputed. A brief in response to such a motion shall include a specifically captioned section listing all material facts as to which it is contended that there exists a genuine issue necessary to be litigated and citing the parts of the record relied on to support the facts alleged to be in dispute. In determining a motion for summary judgment, the Court may assume that facts identified by the moving party in its listing of material facts are admitted, unless such a fact is controverted in the statement of genuine issues filed in opposition to the motion. E.D. Va. Loc. R. moves 56(B) (emphasis added). for summary judgment without In short, a party who "includ[ing] a specifically captioned section listing all material facts as to which the moving party contends there is no genuine issue and citing the parts of the record relied on to support the listed facts as alleged to be undisputed" has violated the Court's Local Rules. Id. A court's generally varies violation. Rule response in to a violation proportion to of the the Local seriousness Rules of the In response to a movant's blatant violation of Local 56(B), outright. the Court may deny a motion Mitchell v. Angelone, for summary judgment 82 F. Supp. 2d 485, 487 (E.D. Va. 1999).3 However, even if a movant fails to comply with Local Rule the 56 (B), "resolve the Court has substantive issues consider them at trial." 442, Supp. 444 2d 3 See (E.D. 814, also Va. the see (E.D. Va. Dixon v. equitable raised and alleviate Williams v. Gradall Co., 1998) ; 819 inherent also Hedrick 2001). Ramirez, Action v. Thus, No. authority the need to 990 F. Supp. Roberts, for to 183 more 2:l2cvl37, F. minor 2012 WL 8441425, at *2 (E.D. Va. July 18, 2012) (unpublished), aff'd, 509 F. App'x 258 (4th Cir. 2013) (unpublished) (per curiam) ; Adams v. Object Innovation, Inc., Civil No. 3:Ilcv272-REP-DWD, 2011 WL 7042224, at *10 (E.D. Va. Dec. 5, 2011) (unpublished), report and recommendation adopted, 2012 WL 135428 (E.D. Va. Jan. 17, 2012) (unpublished); Allen v. City of Fredericksburg, Civil Action No. 3:09cv63, 2011 WL 782039, at *12 (E.D. Va. Feb. 22, 2011) (unpublished); Roche v. Lincoln Prop. Co. , No. Civ.A. 02-1390-A, 2003 WL 22002716, at *9 (E.D. Va. July 25, 2003) (unpublished), rev'd in part, vacated in part, 373 F.3d 610 Cir. 2004), rev'd, 546 U.S. 81 (2005), aff'd on remand, (4th 175 F. App'x 597 (4th Cir. 2006) (unpublished) ; cf. Tross v. Ritz Carlton Hotel Co. , 928 F. Supp. 2d 498, 503-04 (D. Conn. 2013) (under an analogous local rule, denying a motion for summary judgment lacking the required statement of undisputed facts). violations of Local Rule 56(B), courts sometimes will refuse to "elevate and, form over substance" instead, party's failure to comply with the rule. of Hampton, *3-4 (E.D. Civil LLC, Va. Civil Action No. Mar. Action No. 14, 2014); 2:13cv334, will 2014 WL 1050586, see SwimWays Corp. WL the White v. Golden Corral 4:13cv27, 2014 excuse 3615981, v. at Zuru, *9 at Inc., (E.D. Va. July 18, 2014) (Davis, J.). III. Although the parties of their conduct briefing to counterclaims, DISCUSSION have dedicated considerable portions the the merits Court of Defendants' will DENY for summary judgment because Plaintiff, utterly disregarded Local Rule 56(B). statement of Plaintiff to support its Plaintiff's motion without explanation, has Plaintiff has submitted a undisputed facts devoid of relies inequitable those facts upon which motion. Moreover, when Defendants challenged Plaintiff's noncompliance with such rule, Plaintiff Court's declined Local violations of where a to Rules. the party's explain The its Court Local Rules. indifference has short of Defendants the have statement of requirements alleged the However, towards denial of a summary judgment motion, Plaintiff's failure that comply discretion if Local there Rule with to the forgive is any case 56(B) warrants it is this one. undisputed of to this facts Court's Plaintiff's falls woefully Local patents Rules. are unenforceable misconduct: inventor as (1) a result the '204, misrepresentations '204, '359, the TelDig failure art; and "Sawyer" seeks Suite disclose (5) the art judgment on not any forth families "Steven simply of '204, to the the facts and and attempts however, of patents; (2) material prior art; conduct in the Plaintiff's Chambers are conduct are a to Instead, the general the part, named does attempt allegations. strokes, and Plaintiff facts patents-in-suit, patents-in-suit Curtis although undisputed broad prior "Tucker" inequitable of to the (4) patent and inventors that on all while Jeffrey Farr is also a named inventor on the Summ. J. at 1. facts acts failure to disclose However, essential within the (3) regarding statement describes, which Nielsen '001 Defendants' inequitable embraced five patents, '001, facts Defendants' as references. Plaintiff's technology alleged ESRI ArcPad software as material counterclaims, Plaintiff and product misrepresentations summary refute '341, '344, and '341 patents; prior set following regarding Block's status as an inventor of Utility to the misrepresentations regarding Farr's status as an of the of '341 [p] atents." PL's Mem. Supp. Mot. for In addition, Plaintiff's statement of undisputed to incorporate transcripts of five depositions; citation to such transcripts without any reference stated support its motion, therein, upon which Plaintiff does not permit the Court to 10 relies to discern those facts that Plaintiff the body of exclusively contends are Plaintiff's to facts undisputed. brief, outside Furthermore, Plaintiff its cites one-page in almost statement of undisputed facts to support its contention that it is entitled to summary judgment on each of Defendants' inequitable conduct counterclaims failed because sufficient evidence Therasense, Inc. Cir. Defendants (en banc) . 2011) assertion that v. it to have demonstrate inequitable Becton, is Dickinson & Co., to adduce conduct under 649 F.3d 1276 (Fed. By relying on such facts to support its entitled to judgment as a matter of law, Plaintiff indicated that such facts are "material" "might affect the outcome of the suit." See Anderson v. Liberty Lobby Inc. , 477 U.S. 242, 248 include within its statement of (1986). But, because they by failing to undisputed facts those facts on which Plaintiff later relies throughout its brief, Plaintiff did not moving "lis [t] all material facts as to which the party contends there is no genuine issue and cit[e] the parts of the record relied on to as undisputed." E.D. support Va. the Loc. R. listed facts 56(B). alleged to Accordingly, be Plaintiff violated Local Rule 56(B). Plaintiff's procedural unwary violation misstep. designed to of Local ensnare inextricably connected to the Rule Local 56(B) hapless Rules is litigants. the burden that 11 not the is a more trap for Rather, Federal than a the it is Rules of Civil Procedure impose on a summary judgment movant: "show[ing] that there is no genuine dispute as to any material fact and the movant Civ. It is entitled to judgment as P. 56(a). notifies contends Local Rule non-moving are 56(B) parties undisputed and a matter of serves of the two Fed. R. salutary purposes. facts support law." the that the movant's movant alleged entitlement to judgment as a matter of law, and it provides the Court with an organized analytical any material factual dispute undermines those dual assess whether exists and whether the movant entitled to the relief sought. 56(B) framework to is A party that ignores Local Rule purposes and impedes the Court's ability to fairly and expeditiously resolve a motion for summary judgment. As aptly stated by another court applying its analogous local rule: When a party fails to comply with these provisions it is unfair to its adversary, which has a right to know the factual bases of its opponent's case and the specific foundations for those assertions of fact; and its conduct is adverse to the conservation of judicial resources, which are most efficiently deployed when the parties fulfill their adversarial functions in a rigorously organized, coherent fashion. Jackson v. (N.D.N.Y. 28 641 (1st Broome 2000); Cir. (7th Cir. Cnty. Corr. Facility, 194 see also Ruiz Rivera v. Riley, 2000); Little 1995) . v. Cox's Accordingly, F.R.D. 209 F.3d 24, Supermarkets, while a 436, court 71 F.3d 437 27637, occasionally may forgive a litigant for failing to strictly comply with mere 12 procedural formalities in the Local Rules, a violation of Local Rule 56 (B) lies at the more serious end of the spectrum of non compliance because such rule originates from the burden that the Federal Rules of Civil summary judgment. is critical Procedure impose on a party moving A movant's compliance with Local Rule for a court—and opposing parties—to for 56(B) assess the merits of the movant's summary judgment motion. In 56(B) this case, warrants Plaintiff's denial of Plaintiff's statement of near compliance Rules. with To be sure, alone does not appropriate its that is "[w]hile Court's Here, report, asserted that set Local forth Rule above, as ripe the of the Court's Local the extent of Plaintiff's violation the Plaintiff's status case follow As requirements however, sanction. "[t]he motion. to undisputed facts did not come anywhere the dictate refusal conclusion context a footnote for Court regarding matters the too. In to its representation summary judgment," concluded that Plaintiff S&N's pleading states a claim under Exergen . . . S&N cannot prove inequitable conduct when a under full the set heightened of standard undisputed facts are the allegations in the amended answer." 5 & n.4 (emphasis added). The Court of Therasense presented ... rather than PL's Status Report at then granted Plaintiff's request for leave to file a second summary judgment motion, which would involve Defendants' or one inequitable conduct allegations. 13 Nonetheless, summary Plaintiff's judgment facts." Far did from brief not it. in support present In such a "full support its challenges counterclaims. issue whether to Furthermore, the Court motion of for undisputed Plaintiff included throughout its brief, Defendants' Defendants should deny its set statement, none of the critical facts it later used, to of inequitable squarely Plaintiff's conduct raised motion due the to the shortcomings of Plaintiff's statement of undisputed facts.4 Yet, in its procedural explain reply brief, argument why it did not with Local the in any way. had Plaintiff Plaintiff did not failed request Rules. to address Defendants' Plaintiff comply leave to Plaintiff did not with amend did Local its not attempt Rule brief ask to the to 56 (B) . comply Court to exercise its inherent equitable authority to reach the merits of Plaintiff's motion, Succinctly stated, notwithstanding Rule 56 (B) . discretion to overlook violations a case Defendants in deficiencies. Plaintiff did nothing to address its failure to comply with Local in its which expressly Plaintiff have 4 Indeed, in the Plaintiff's statement of The of has Court the Local ignored challenged is mindful of Rules. Local Plaintiff's its However, Rule 56(B), failure to same section that Defendants contested undisputed facts, Defendants even cited SwimWays Corp., a case in which the undersigned Judge overlooked a movant's partial noncompliance with Local Rule 56(B) because the nonmoving party had not raised the issue and the movant's statement of undisputed facts, though brief, at least included facts addressing the merits of its arguments. 2014 WL 3615981, at *9. 14 comply with such rule, and Plaintiff categorically has declined to explain such failure, 56(B) if a rule as important as Local Rule is to be anything other than a dead letter, the Court must DENY Plaintiff's motion. IV. For the reasons set CONCLUSION forth above, Plaintiff's Motion for Summary Judgment, of such ruling, August 14, 2015 contact entry of trial this ECF No. 341. DENIES In light because oral argument would The Court DIRECTS docket clerk within Memorandum Order to not counsel seven set the aid in the for the parties (7) days date for after the the bench in this matter. The Order the Court the Court CANCELS the hearing originally set for decisional process. to the Clerk to all IT IS is REQUESTED counsel of to send a copy of this Memorandum record. ORDERED. M. Mark S. Davis United States District Judge Mark S. UNITED Norfolk, Virginia August 7, 2015 15 STATES Davis DISTRICT JUDGE

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