Innotec LLC v. Visiontech Sales, Inc. et al

Filing 144

MEMORANDUM OPINION. Signed by Senior Judge Glen E. Conrad on 9/14/18. (hnw)

CLERKS OFFI U. . DI COURT
CE S SX
AT ROANOKE,
VA
FI
LED

SEF 1# 2 1
22

I THE UNI
N
TED STATES DI
STRI COURT
CT
FOR THE W ESTERN DI
STRI OF VI NI
CT
RGF A

CHARLOTTES LLE DI S ON
VI
VI I

J
UL C. DLEY,CLERK

B :j h v cuEf?t
Y n ur eR

I NOTEC LLC,
N
Pl i i f
a ntf ,
V.

VI ON TECH SALES,I , ta .
SI
' e 1,
NC.
Ci lA c i N o.3: 7CV 00007
vi ton
1
Dee ns
f nda t .

M XM ORANDUM OPI ON
NI
V I ON TECH SA LES,l C .
SI
N ,

By:Hon.Gl n E.Corr d
e
la
Se orUùie St t sDititJ
ni
t d a e i src udge

Countr l m Pl ntf,
e cai ai if

I OTEC,e a .
NN
t l,
Countr ai De e
e cl m f ndan s
t.
.

On J y 20,201 t c r gr nt d t de e
ul
8, he ou t a e he f ndan s m o i t c
t ' ton o ompelar ta i a t
bir ton s o
CountIoft pl n ifsc
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ant
our r c e he ri o i he s ue
t r
t r mai ng cai s ul be sa d pe i t r s uton oft a bir ton pr e di . The
he e ni lins ho d
t ye nd ng he e ol i
he r ta i
oc e ngs
pa te ha tl d smula ous bre s s ti f rh t i r s c i posto o t i is
ris ve se i tne
if e tng o t her e pe tve
ii ns n l s s ue.
l
Addii ly,t pl i ifha r ne
tonal he antf s e wed is m o i f r s nc i bas d' a lged vi a i of
t
ton o a tons e on le
oltons
dic r or r , a t def nda s ha moved t r e t ca e f p e ai n. For t
s ove y de s nd he e nt ve
o ef r he s or di to
he
f l ng r s ns t c t w il t m po a iy s a a l f t r pr e ngs pe ng a bir ton,
olowi ea o , he our l e r rl t y 1 ' he oce di
ur
ndi r ta i
w ih t e p i n oft e r l t t t pl i if sm oton f s tons a t e or m e of
t he xce t o
hos e a qd o he a ntf
i or anc i
nd he nf ce nt

t pa te e si di c r oblga i . The de e nt ' m oto t r f r t c e f
he ris' xitng s ove y
i tons
f nda s
i n o e e he as or
mediton wilbe de e
ai
l
ni d.

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)
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rh 6 201 , h fn a t n wee
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nnot ' m a nt nd ied oun e cli
gans l t c nd t
gi
mbe , l n
Ti
ng.

The Exc usviy Ag e m e t r f r nc d i Cot I of t c
l it
r e n eee e n
mt
he ompl n i one of s ve a
ait s
e rl
wrte ag e me son whih t pa te 'c am sar bas I i t onl a ee ntt tco ai
itn r e nt
c he ri s l i
e ed. t s he y gr me ha nt ns

q abir to ca e Theca epr de ,i pe tnen pa tt t'gq conr risordiput
n r tain lus .
lus ovi s n ri t r,ha Cany tove se
s es
a ii outoforr a e t t sAg e m e s lber ol d by bi ng a bir ton i ac or nc
rsng
elt d o hi r e nt hal
es ve
ndi r ta i n c da e
wih t t n- ur e Co me cilAr taton Ruls o t Am e i a Ar ta i As oca i '
t he he c r nt m r a bir i
e f he
rc n bir ton s iton.
'

Co l Ex. a 3 Do k tNo 12.Th ca s f rh rp o ie t a dth d cso rn e e b
mp . B t , c e . e lu e u te r vd s h t G l e e iin e d r d y
g

teabi ao t)s l b fn la dbidn o t p ris'a ta Cu me tma bee tr di
h r t t rs hal e ia n n ig n he a t y nd h t j dg n y n ee n
r
e '
c n o t wi ted cso i a yc u t vn j rs ito ' 1
o f nni t h e iin n n o r ha ig u id cin. d.
y h
'
On M a c 9,201 t de e
rh
8, he f ndan s m o
t
ved t c
o ompela bir ton a t Coun I of t
r ta i s o
t
he
c pli . Imotc oppos d t moton,a gui i pa t t tt de e
om ant r e
e he
i r ng, n r, ha he f ndant wa ve t rghtt
s i d he i o
e or e t a bir ton pr s on by notf lng t m oton un i a t r t pa te had e ged i
nf c he r t a i
ovi i
ii he
i
tl f e he r i s
nga
n

dico r a t pli tf ha m ove f s tons f alege dic ve y vi a i . Upon
s ve y nd he a n if d
d or anci
or l d s o r oltons

2

r viwi t pa es bre sa t a i bl lw,t c tc ude t tl e ha notme
e e ng he li ' i f nd he pplca e a he our oncl d ha nnotc d
t

isC a yb r e 'o p o ipwave. S eJ y 2 , 01 M e Op. 2, c t 1 2( u tn
t i v u d n' f r vn i r e ul 0 2 8 m. 1 Do ke No. 3 q o ig
he
RoaM c ryv. a tnd rCo s me US l c, 0 F.d6 0 7 2( t Ci. 01 ).Thec u t
t- La t S n a e n u r A. n .7 0 3 9 , 0 4h r 2 2)
or
f t r c l d t t t a bir to pr so of t Excusviy Agr me i e o ce bl
urhe oncude ha he r tai n ovii n
he
l it
ee nt s nf r a e
a i tI t c,a t tt cai as e td i CountIf l wihi t s ope oft pr vii
gans nno e nd ha he l ms s re n
a l t n he c
he o son.
Ac di y,t c tg a ed t def nda s moton t c
cor ngl he our r nt he e nt ' i o ompela bir ton ast Count1
r ta i
o
.
'

.

Thede e nt di no move t co pe a bir to a t a ot rc mti t c
f nda s d t
o m l r tai n s o ny he ot n he ompl i ,
ant
and net r sde a e s d how t r m ani cai ss ul pr ee i t e ntt tt c t
ihe i ddr s e
he e i ng l m ho d oc d n he ve ha he our
r quied a bir ton of Count 1 Cons q nty, t c t pe mit d t pa tes t s
e r r ta i
.
e ue l he our r te he ri o ubmi
t
addii lbrefng on t tis . Spe ii aly,t c tga t pa te untlAugus 3,201 t
tona i i
ha s ue
c fc l he our ve he ri s i
t
8 o

fl çsm ula ousbre s a e sng t is ofwhe he t r mai ng cli s s d be sa d
ie ti tne
i f ddr s i he s ue
t r he e ni
am houl
tye
pendi t abir ton pr e di r lt d t Co 15 1 a 1
ng he r ta i
oc e ngs ea e o unt . d. t 7.
'
On Augus 2,201 I t c r ne
t
8, nno e e wed is moton f s nc i f al ge dico r
t
i pr a tons or le d s ve y
vi a i by t de e n s The f l ng da t pari fld bref s ti f t t r
oltons
he f nda t .
olowi
y, he tes ie i s e tng orh hei
r s c i pos tons on t pr i t Of s a ng t r m a ni c ai s pe ng a bir ton. 1 o n
e pe tve ii
he opr e y
t yi he e i ng l m
ndi r t a i

Augus 7,201 t de e nt ,who a e now r pr s n ed by dif r ntc
t
8, he f nda s
r
e eet
f e e ouns l moved t r e
e,
o ef r

t ee tr c s t ane ta ma itae u ef rme ito
h n ie a e o ur l gsrt j dg o d ain.

1The c tnot t tt def nt ' bref wentwel be
our es ha he enda s i
l yond t cour' i tuc i a ar
he
ts nsr tons nd gued
entr y new posii i t aler tve,ngmel t tt cour s d compe a bir ton ofCount 1 a II
iel
tons n he t nai
y h4 he
t houl
l r tai
s 1 nd l
and dimis Count I and V f f l e t sae a cai The cour declnes t consi r t e aler tve
s s
s V
or aiur o t t
l m.
t i o
de hes t nai
a gument,whi have notbeenr se i any motonfl byt de e
r
s
ch
ai d n
i ied he f ùdant. See.e. ,Her r v.Na ' Aca
s
g. be t
tl d.

ofSc. 9 4 F.d 1 2 1 5 ( C.Ci.1 2 (mph szn ta c n i rtonofn w agu nsrie f rte
i 7 2 9 , 9 D. r 99 ) e a iig h t o sdeai
,
e r me t as d o h
frttmei a rpy bifwo l b ' nfsl un ar't t o po ig sd ) W alc v Tr t No.81 -v
s i n q l re ud e t ie ty fi' o he p sn ie ; l e . os,
ma
a
:3c 0 47 ,2 4 U. Dit LEXI 1 4 2 a # 1( Md.S p.4,2 4)( tn ta a r py bre i n ta
3 3 01 S. s.
S 2 29 , t 1 D.
e t 01 noig h t e l if s o
moin ; e as Fe .R. v. 1 ( ( rviigta amo i t ds s f rfiu et saeacam S s b
to ) s e lo d Ci P. 2b) po dn h t ton o imis o alr o tt li s t e
mu
ma b fr pla igi ar s o svepe dngi alwe '.
de eo e e dn f e p n i la i s lo d'
)

D i si
scus on

1
.

M oton t R e er t C as f M edi t on
i o f he
e or
ai

Be or t ni t t prm a y is of wheher t s a f rhe pr e ngs pe ng
f e ur ng o he i r s ue
t
o ty u t r oc edi
ndi

a bir ton, t c t wil brefy a e s t de e nt ne m o i n t r f r t c e f
r ta i he our l i l ddr s he f nda s' w
to o e e he as or
m e a i The de e nt s ii a l s e t ha t e ie c e r e r d t m e ai n a
diton.
f nda s pecfc ly e k o ve he ntr as ef re o di to nd

rq e tt tte me ito b c n u td b a ma itae j dg wh h s n tha a y pro
e u s ha h d ai n e o d ce y
gsrt u e o a o d n ir
i ve nt i t c s Im o e oppos s t moton a ale ai l a gues t t a c t
nvol me n he a e. l t c
e he
i nd tm tvey r
ha ny our-

o d rd me ai ns o l b c n u td b t s mema itaej g wh h sp ei e o rt
r ee dito h u d e o d ce y he a
g sr t ud e o a r sd d ve he
pa te ' dic r diput s I lgh of t pa tes diag e m e ,a gi n t c ts pror
ris s ove y s e . n i t he ri ' s r e nt nd ve he our' i
de son t co pe abir to i a co da e wih t ma or l nguag of t Excusviy
çii o m l r tai n n c r nc t he ndat y a
e
he
l it
Ag e men , t co t de i t r f r t c s f m e ai n a wil t r f e de t
r e t he ur clnes o e e he a e or dito nd l he e or ny he
de e nt ,m o i n.2
f nda s to
11
.

Propri v ofSt ne Furt Proceedi Pendi A rbirat on
et
avi
her
nzs
ne
t i

Ha ng pr vi l c
vi
e ousy ompel d a bir ton oft cai a s td i Cot Iof l t c'
le r ta i
he l ms s ere n
mt
nno e s
c
ompli ,t cou tm us
ant he r
tnow detr i whe he t sa t r ma ni c am s pe ng t
e m ne
t r o t y he e i ng l i
ndi he
r s uton of t a bir ton pr e ng
e ol i
he r ta i
oce di s. $ ditit cou t has br d dic ei n t sa
ç
A src
r
oa
s r to o ty
pr e ngsa pa'ofisi r ntpo rt c r isown doc t' Unie Stt se r l Ha bor
oc edi
s l t nhe e
t
we o ontol t
ke .
' td ae x e. r

Co sr Co v T. R. tr.I .31 F. u p. d7 7 8 ( D. . 01 )(iigLa i v.
n t. . . H. En essnc, 1 S p 3 9 , 05 E. Va 2 8 ctn nds N.
2 The cour nots however t t Commer al Ar taton Ruls of t Amerca Ar tai
t e
, hat he
ci
bir i
e
he
i n bir ton
,

Aso ito ($ ' rqur me iton i c s swhee a cam orc u t rli e e d $7 ,0 u e sa
s cain (
AAA' e ie dai n a e
)
r li
o n ecam xc e s 50 0, nls

p ryt t abiai afr tvey o t o to teme ain pocs b n tf n t AAA a teoh r
at o he r t ton fimai l ps u f h dito r es y oiyig he
r
nd h te
p rlst t abi ain.Se AAA Co ril bi ain Rue a dM e ainPr c d rs(fe tv Oc.1
a t o he r t to
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e
mmeca Ar t to ls n dito o e ue efcie t ,
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i tae medi i undert aus ce oft AAA,i ma do s çby maki a r ques f m e aton t any of
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ng e t or di i o
t AAA' r onalofi s orca managementc er vi t e
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a r s onlne vi t AAA webst I a Rul M - G entan a ee e oft pari t t c rr
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Abs
gr m nt he tes o he onta y,
t mediton s lt plce concurenty wih t ar ta i and s lnot s r t deay t abirton
he
a i hal ake a
r l t he birton
hal
e ve o l he r ta i
pr di .'I a Rul Rocee ngs' d. t e 9.

4

Am. , 9 U. 2 8 2 4( 9 6) s eas Am. c v r Co'.9 F.da 9 I e r iig
Co.2 9 S. 4 , 5 1 3 ), e lo
.
Re o ey 1 , 6 3 t 7. n xecsn
n
s h dicr ton,ça co t mus ç i h co pe i i e e t a m ant i a e n balnc ''
uc s ei $ ur
t we g m tng nt r s s nd i an n ve
a e.'

Hab rCo sr Co, 1 F. u p. da 8 5( u t La d s 29 U. a 2 5 .t he abtain
r o n t. .3 1 S p 3 t 0 q oi n i, 9 S. t 5 ) t n r irto
ng
W

i l l t s t e q sin o f c pet ntt n n r irb ecams do i eain o j iil
s i y o et ueto s f a t ri o o abta l li , c nsd rto s f udca
ke
l
ne
e onomy a a da ofc u i a pos i e i nsse r s t ...m iia e i f vo of
c
nd voi nce
onf son nd sbl nco it nt e uls
ltt n a r
sa ng t e tr a ton.' Am .He r Die e Pr ve i n Found.v.Huc y, 1 F. 389,
t yi he n ie c i ''
a t s as e nto
he 06 3d

1 9 U..Ap LEXI 1 0 ,a *1 ( t Ci.1 9 )(n bih dtb e o i o )( u tn AJ
9 7 S p.
S 8 6 t 6 4h r 9 7 u pu ls e a l pnin q oi g n.
Ho Asu a c Co v. c o Co cee Co sr Co,6 9 F.d 9 ,9 4 ( t Ci.1 0 ) $n
me s rn e . Ve c n r t n t. . 2 2 61 6 4h r 98 ). $
1
s h ca e , hesa ca a y t pa teswhom ayply no r ei t a bir ton. I
uc s s t t y n ppl o ri
a
ol n he r ta i ' d.
'
l t i tntc e,t c tag e s wih t de e nt t tt a bir to pr e ngs
n he nsa as he our r e t he f nda s ha he r tai n oc edi
ar lkey t r s ve f c ua q si r l va t m os,i not a l of $ pa tes cli s I
e i l o e ol a t l ue tons e e nt o
t f
l, he ri ' am . n
patiulr t de e nt ma n a n t ta1 ofI e sc am sa eba r d by whatt y r e t a
c a , he f nda s i t i ha l nnot c' l i r re
he ef r o s
t % une 1 201 Agr eme ' bewee Imot a Vii e h. See e. ,Ans r De e e ,
he s
l
4, 6
e nt' t n r ec nd sont c
s g.
we , f ns s
J ' De
ul
y mand a Co e cli 7,Doc tN o.10. l t rm s
nd unt r am
ke
n hei ponsve pl a ng,t de e nt
i
e di he f nda s
contnd t tt J
e ha he une 1 201 Agr me çs rede 't Excusviy Ag e m e on whih
4, 6
ee nt supe s d' he
l i t
r e nt
c
Count 1 i ba e t t i c tt e a S
s s d, ha t onsiutd i ton a s tlm e of a de s due'unde t
nova i nd e te nt
ny bt
'
r he
Exc usviy Ag ee t a ot r e si i c ,a t tI e tc
l i t
r men nd he xitng nvoies nd ha nnot c çomm it d t trt a
te he i s nd
prorm ae i lbr ac s oft J
i
t ra e he
he une 1 2016 Ag e m e t' I a 84,
r e n . d. t 28. The def nda s plad
'
e nt e
ûnovai ' nd ç i matra br a h'a a fr a i de e e t ea h ofI e scli s I a
s ton'a ç or e i l e c ' s fim tve f ns s o c
pr
nnotc' am , d. t
The a s a s r a co mt r a m f br c of c r tba e a l a t i pa t on t s m e
y lo s e t
t e cl i or ea h
ontac s d, t e s n r , he n
alega i r r ng t J 1 201 A g ee e t 1 a 36l tons ega di he une 4, 6 r m n . d. t 40.

Thus t f t lque to s r
, he acua
si ns uroundi t J
ng he une 1 201 Agr eme a e c nta t t
4, 6
e nt r e r l o he
r s u i oft s c e. Bec us t s que to willkey be c i r d a add e s d i
e ol ton hi as
a e he e si ns l i l
ons de e nd r s ed urng

t abtain p o e d n sr ltdt Co n 1 tec u tb le e t t( o sd rto so j dca
he r irto r c e i g eae o u t , h o r eiv s ha ç n ieain f u iil
c
ec
onomy a a da e of co uso a pos i e i onsse r s t' m iia e i f vor of
nd voi nc
nf i n nd
sbl nc it nt e uls' ltt n a
sa ng f t rpr e di o t r mai ng clm s
tyi urhe oc e ngs n he e ni a .Am .Hom eAs ur nc Co. 629 F. a 96
s a e ,
2d t 4.
To al vit I e s co m s r ga di a lge di c r vi l tons by t de e
le a e nnot c' pce
e r ng le d s ove y o a i
he f ndant,t
s he

c u twi rti j rs ito o e t ep n ig moip frs n to a d t ee o c me to t e
o r l ean u idcin v r h e dn to o a cins n h nfr e n f h
l
pa tes e itng dico r o i a i . Se . e c. ATA C Com .v.A r hur Tr c r s I ,280
ri ' x si
s ve y blg tons3 e . ,
t
ea he ' . nc.

F.d 1 91 11 2 (t Ci.2 0 )( oi t a I mpe p e e e t'i iae t a a dsrc c u t
3 0 , 0 6h r 0 2 n tng h t d l r c d n ' ndc ts h t itit o r
a

rti Su idcin t d tr n c ltrlmatr s h a sncin frds o r a u e e e
eans j rs ito o eemie ol ea tes uc s a to s o ic vey b s s v n
a
wh n a moin t sa a p oc e i g p n i g abi ain i g a td' (olcig c s s.
e
to o ty
r e d n e d n r t to s r ne ' c le tn a e)
r
)
Addii ly, o e ur t tt a bir ton pr ee ngsa e S e f diput r s uton'a ç
tona l t ns e ha he r tai
oc di r t d or s e e ol i ' nd û
us
not
asa deay tc i ' t c twilonl sa t a ton f a pe i of 1 da . Ha bo Co t.
l a tcr he our l y t y he c i or
'
rod
20 ys
r r nsr

Co.31 F. p 3 a 8 ; e as Am. meAst a eCo, 2 F.d a 9 4( b e vngt a
, 1 Su p. d t 06 s e lo
Ho
sl nc .6 9 3 t 6 o s r i h t
r
t çdititco tha s h contolofisdoc ta t i ur a ns t r a ed de a duet t
he s src ur s uc
r
t
ke s o ns e gai t mwa r nt
ly
o he
da
i
l y
e
howi
abirton pr ee ngs'. The 120- y perod shal onl be ext nded upon a s ng ofgood
r tai oc di '
)
CaUSC.

Conc us o
l in

For t r s ns sa ed,t de e nt' moton t r f r t ca e t m e a i wilbe
he ea o tt he f nda s
i o e e he s o diton l
deni d. The c tw ile r i e is di c e i t s a a 1f t r pr e ngs i t s a ton f a
e
our l xe c s t s r ton o t y l urhe oc edi
n hi c i or
perod of 1 da ,wih t e e i o t e r l t t t pl i i fs m oton f s nc i a
i
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he nf c nt he ris' xitng s ove y blga i .
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e
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he ontnui
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The Clr i diece t s nd co e oft sme o a
ek s r td o e
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DATED:Thi l
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da ofSep e be ,201
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t m r 8.

Se orUnie St t sDititJ
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