In Re JUNIPER NETWORKS, INC. ( 2021 )


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  • Case: 21-156    Document: 18     Page: 1    Filed: 10/04/2021
    NOTE: This order is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    In re: JUNIPER NETWORKS, INC.,
    Petitioner
    ______________________
    2021-156
    ______________________
    On Petition for Writ of Mandamus to the United States
    District Court for the Western District of Texas in No. 6:20-
    cv-00670-ADA, Judge Alan D. Albright.
    ______________________
    ON PETITION
    ______________________
    Before DYK, PROST, and HUGHES, Circuit Judges.
    PER CURIAM.
    ORDER
    Juniper Networks, Inc. petitions for a writ of manda-
    mus directing the United States District Court for the
    Western District of Texas to transfer its case to the United
    States District Court for the Northern District of Califor-
    nia. We recently granted a similar petition in a case involv-
    ing Juniper because the district court’s refusal to transfer
    amounted to a clear abuse of discretion. In re Juniper Net-
    works, Inc., No. 2021-160, 
    2021 WL 4343309
     (Fed. Cir.
    Sept. 24, 2021). This case involves remarkably similar facts
    and many of the same erroneous conclusions. We once
    Case: 21-156    Document: 18         Page: 2   Filed: 10/04/2021
    2                                  IN RE: JUNIPER NETWORKS, INC.
    again grant the mandamus petition and direct the district
    court to transfer.
    I.
    In July 2020, Correct Transmission, LLC filed suit in
    the federal district court in Waco, Texas, accusing Juni-
    per’s networking products of infringing five of its patents.
    Juniper moved to transfer the case to the Northern Dis-
    trict of California under 
    28 U.S.C. § 1404
    (a), arguing that
    the Northern District of California was a more convenient
    forum. Juniper emphasized that 10 of its 12 knowledgeable
    employees work at Juniper’s Northern California head-
    quarters and none work in Texas. And of the eight named
    inventors of Correct Transmission’s asserted patents, two
    work within 20 miles of that same headquarters, while the
    remaining inventors reside in Israel. At that time, Juniper
    had an office in Austin, Texas, 1 but Juniper alleged that its
    Austin employees had largely worked on unrelated prod-
    ucts or have no unique knowledge about the accused prod-
    ucts. Juniper also argued that Correct Transmission is a
    non-practicing entity headquartered in Delaware and ap-
    pears to have no offices in Texas. In light of this infor-
    mation, Juniper asked the district court to transfer its case
    to the Northern District of California.
    After analyzing the four public and four private inter-
    est factors that traditionally govern transfer determina-
    tions, 2 the district court denied Juniper’s motion, finding
    1 Juniper’s Austin, Texas office closed in March 2021.
    2 The public interest factors are: “(1) the administrative
    difficulties flowing from court congestion; (2) the local in-
    terest in having disputes regarding activities occurring
    principally within a particular district decided in that fo-
    rum; (3) the familiarity of the forum with the law that will
    govern the case; and (4) the avoidance of unnecessary
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    IN RE: JUNIPER NETWORKS, INC.                               3
    that these factors did not favor transfer to the Northern
    District of California. In particular, the district court
    agreed that the Northern District of California could more
    easily access sources of proof. But it found that the Western
    District of Texas could better compel unwilling witnesses
    and could likely adjudicate the case faster. The court deter-
    mined that the remaining five factors were neutral. On bal-
    ance, the court concluded that Juniper did not show that
    the transferee venue was clearly more convenient.
    Juniper then filed this petition. We have jurisdiction
    under 
    28 U.S.C. §§ 1651
     and 1295.
    II.
    We review transfer determinations in cases arising on
    mandamus from district courts in the Fifth Circuit for a
    clear abuse of discretion. See In re TS Tech USA Corp., 
    551 F.3d 1315
    , 1319 (Fed. Cir. 2008). As discussed above, deci-
    sions on motions to transfer weigh four private interest fac-
    tors and four public interest factors to compare the relative
    convenience between the venues. See In re Hulu, LLC, No.
    2021-142, 
    2021 WL 3278194
    , at *2 (Fed. Cir. Aug. 2, 2021).
    First, although no single factor is dispositive, “[t]he
    convenience of the witnesses is probably the single most
    important factor in transfer analysis.” In re Genentech,
    problems of conflict of laws or in the application of foreign
    law.” In re Juniper Networks, Inc., No. 2021-160, 
    2021 WL 4343309
    , at *2 (Fed. Cir. Sept. 24, 2021).
    The private interest factors are: “(1) the relative ease
    of access to sources of proof; (2) the availability of compul-
    sory process to secure the attendance of non-party wit-
    nesses whose attendance may need to be compelled by
    court order; (3) the relative convenience of the two forums
    for potential witnesses; and (4) all other practical problems
    that make the trial of a case easy, expeditious, and inex-
    pensive.” 
    Id.
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    4                               IN RE: JUNIPER NETWORKS, INC.
    Inc., 
    566 F.3d 1338
    , 1343 (Fed. Cir. 2009) (quoting Neil
    Bros. Ltd. v. World Wide Lines, Inc., 
    425 F. Supp. 2d 325
    ,
    329 (E.D.N.Y. 2006)). Here, the district court clearly erred
    when it found this factor neutral.
    Juniper identified 10 out of 12 potential employee wit-
    nesses and two inventors living or working in the Northern
    District of California. Correct Transmission, on the other
    hand, identified no willing witnesses in the Western Dis-
    trict of Texas. Citing one of its prior decisions, the district
    court concluded that this factor was neutral by discounting
    Juniper’s witnesses in Northern California because “inter-
    ested parties in the litigation . . . are much more likely to
    accept having to travel to see litigation through to their de-
    sired result” and by presuming that “no more than a few
    party witnesses . . . will testify live at trial.” Appx17–18
    (citing Fintiv, Inc. v. Apple Inc., No. 6:18-cv-00372-ADA,
    
    2019 WL 4743678
    , at *5 (W.D. Tex. Sept. 13, 2019)).
    We recently rejected the same reasoning in In re Juni-
    per Networks, Inc., No. 2021-160, 
    2021 WL 4343309
     (Fed.
    Cir. Sept. 24, 2021). The factor that weighs the relative con-
    venience of the forums for potential witnesses is not atten-
    uated “when the witnesses are employees of the party
    calling them.” Juniper, 
    2021 WL 4343309
    , at *4 (citing In
    re Hulu, LLC, No. 2021-142, 
    2021 WL 3278194
    , at *5 (Fed.
    Cir. Aug. 2, 2021)). Further, “[t]he court’s assumption that
    Juniper would not call many party witnesses was not based
    on any evidence specific to this case,” which we have re-
    peatedly explained is insufficient. Juniper, 
    2021 WL 4343309
    , at *4 (listing cases). The district court erred when
    it did not find that this factor weighs strongly in favor of
    transfer.
    Second, the district court erred in its analysis of the lo-
    cal interest factor. It is undisputed that the events under-
    lying these infringement claims occurred mainly in the
    Northern District of California and not at all in the West-
    ern District of Texas. “That is sufficient to give the
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    IN RE: JUNIPER NETWORKS, INC.                                5
    transferee venue a greater localized interest in the dispute,
    which favors transfer.” Juniper, 
    2021 WL 4343309
    , at *4
    (citing In re Samsung Elecs. Co., 
    2 F.4th 1371
    , 1380 (Fed.
    Cir. 2021) and In re Acer Am. Corp., 
    626 F.3d 1252
    , 1256
    (Fed. Cir. 2010)).
    In finding that the local interest factor was neutral, the
    district court relied on the fact that Juniper had “availed
    itself of the state of Texas to do business,” pointing out that
    Juniper maintained an office in Austin and holds a vendor
    contract with the state to provide data storage, data com-
    munications, and networking equipment products.
    Appx20. But Juniper’s offices in Austin have no relation to
    this case. And its general contacts and business in Texas
    are not enough to establish a local interest in the Western
    District of Texas comparable to that of the Northern Dis-
    trict of California. As we recently explained, the local-in-
    terest factor does not consider “the parties’ significant
    connections to each forum writ large, but rather the signif-
    icant connections between a particular venue and the
    events that gave rise to a suit.” In re Apple Inc., 
    979 F.3d 1332
    , 1345 (Fed. Cir. 2020) (internal quotation marks and
    citation omitted). In Apple, as here, the court “misapplied
    the law to the facts” when it “heavily weigh[ed]” the defend-
    ant’s “general contacts with the forum that are untethered
    to the lawsuit.” Id.; see also Juniper, 
    2021 WL 4343309
    , at
    *5.
    And unlike the non-practicing entity in Juniper, which
    was incorporated in Texas and maintained its principal of-
    fice in Waco, Correct Transmission has not alleged any ties
    to Texas. Juniper, 
    2021 WL 4343309
    , at *5; see Appellee’s
    Br. 27. Correct Transmission’s ties with Texas are not even
    “recent and ephemeral”; they are nonexistent. See Juniper,
    
    2021 WL 4343309
    , at *5. This information supports the lo-
    cal-interest factor. See Appx20. In sum, the district court
    erred in finding this factor neutral.
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    6                               IN RE: JUNIPER NETWORKS, INC.
    Third, the district court correctly found that the North-
    ern District of California has better access to sources of
    proof because Juniper’s source code and other relevant files
    are located primarily at its headquarters in California.
    Appx16. While electronic storage makes documents more
    widely accessible, this factor remains relevant. In re
    Volkswagen of Am., Inc., 
    545 F.3d 304
    , 316 (5th Cir. 2008)
    (en banc); see In re Radmax, Ltd., 
    720 F.3d 285
    , 288 (5th
    Cir. 2013) (“[T]he question is relative ease of access, not ab-
    solute ease of access.”).
    Fourth, the compulsory-process factor does slightly fa-
    vor the Western District of Texas, but not to the extent that
    the district court alleges. Correct Transmission identified
    two former Juniper employees, one located in Austin, who
    are unwilling to testify without a subpoena and allegedly
    have relevant information. But district courts “should as-
    sess the relevance and materiality of the information the
    witness[es] may provide.” Genentech, 566 F.3d at 1343.
    Here, the district court described these two witnesses as
    “key” witnesses without considering the relevance and ma-
    teriality of their knowledge. Appx17. Juniper asserts that
    the former employees’ information is not material because
    it is duplicative—current Juniper employees can provide
    the same information without the need for a subpoena.
    Correct Transmission disagrees, arguing that one of the
    witnesses has authored several publications on the accused
    products and that the other witness led the development
    teams for hardware platforms used in the accused prod-
    ucts. But publications and titles alone do not show that
    these witnesses have information that Juniper’s current
    employees cannot provide. The availability of current em-
    ployees who can provide the same information makes this
    factor weigh only slightly against transfer.
    Finally, the district court erred when it concluded that
    the court congestion factor weighs in favor of the Western
    District of Texas. We have repeatedly noted that, under a
    proper analysis that looks to the number of cases per
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    IN RE: JUNIPER NETWORKS, INC.                               7
    judgeship and the actual average time to trial rather than
    aggressively scheduled trial dates, “the Western District of
    Texas and the Northern District of California show no sig-
    nificant differences in caseload or time-to-trial statistics.”
    Juniper, 
    2021 WL 4343309
    , at *6. Further, this is the “most
    speculative” of the factors. Id. at *7. “And when other rele-
    vant factors weigh in favor of transfer or are neutral, ‘then
    the speed of the transferee district court should not alone
    outweigh those other factors.’” Id. (citing Genentech, 566
    F.3d at 1347).
    In sum, as in recent cases in which this court has
    granted mandamus, the center of gravity of this action is
    clearly in the Northern District of California. The district
    court clearly abused its discretion in denying the motion to
    transfer. We therefore grant Juniper’s petition directing
    transfer of the case.
    Accordingly,
    IT IS ORDERED THAT:
    The petition is granted. The district court’s May 26,
    2021 order is vacated, and the district court is directed to
    transfer this matter to the United States District Court for
    the Northern District of California.
    FOR THE COURT
    October 04, 2021          /s/ Peter R. Marksteiner
    Date                 Peter R. Marksteiner
    Clerk of Court
    

Document Info

Docket Number: 21-156

Filed Date: 10/4/2021

Precedential Status: Non-Precedential

Modified Date: 10/4/2021