In Re APPLE INC. ( 2022 )


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  • Case: 22-162     Document: 19    Page: 1    Filed: 11/08/2022
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    In re: APPLE INC.,
    Petitioner
    ______________________
    2022-162
    ______________________
    On Petition for Writ of Mandamus to the United States
    District Court for the Western District of Texas in No. 6:21-
    cv-01101-ADA, Judge Alan D. Albright.
    ______________________
    ON PETITION AND MOTION
    ______________________
    MELANIE L. BOSTWICK, Orrick, Herrington &
    Sutcliffe LLP, Washington, DC, for petitioner Apple Inc.
    Also represented by LAUREN WEBER; MELANIE
    HALLUMS, Wheeling, WV; ANDREW T. RADSCH,
    ANDREW N. THOMASES, Ropes & Gray LLP, East Palo
    Alto, CA
    BRETT E. COOPER, BC Law Group, PC, New York,
    NY, for respondent Aire Technology Ltd. Also repre-
    sented by JONATHAN RANDY YIM.
    Before DYK, REYNA, and TARANTO, Circuit Judges.
    REYNA, Circuit Judge.
    ORDER
    Apple Inc. petitions this court for a writ of mandamus
    directing the United States District Court for the Western
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    2                                           IN RE: APPLE INC.
    District of Texas to vacate its scheduling order, promptly
    rule on Apple’s pending transfer motion, and stay all pro-
    ceedings on the merits until transfer is resolved. Apple
    also moves for this court to stay the district court proceed-
    ings pending resolution of Apple’s petition. Aire Technol-
    ogy Limited opposes the petition and motion.
    Aire sued Apple for patent infringement in the Western
    District of Texas in October 2021. In April 2022, Apple
    moved, pursuant to 
    28 U.S.C. § 1404
    (a), for transfer to the
    United States District Court for the Northern District of
    California. Apple submitted a declaration from Mark Rol-
    lins, an Apple finance manager, “to establish certain facts,
    such as the relevance, role, and locations of witnesses and
    their teams, as well as the relevance and locations of vari-
    ous categories of documents.” Pet. at 6.
    Shortly before the close of venue discovery, Apple
    sought leave to supplement its motion with additional dec-
    larations from employees who Mr. Rollins had consulted in
    preparing his declaration to bolster the credibility of his
    statements. Apple offered to make the declarants available
    for deposition and stated non-opposition to a “reasonable
    continuance” of the transfer proceedings. Appx181. The
    district court granted Apple’s motion, but sua sponte or-
    dered the parties to complete fact discovery on the merits
    (which it extended for an additional 30 weeks) and then go
    through another six weeks of re-briefing of the motion be-
    fore it would rule on Apple’s request to transfer under §
    1404(a). Apple then filed this petition seeking review of
    that order.
    Although a district court has discretion in managing its
    own docket, see Landis v. N. Am. Co., 
    299 U.S. 248
    , 254–55
    (1936), an appellate court may grant mandamus to correct
    a clearly arbitrary refusal to act on a longstanding pending
    transfer motion. See, e.g., In re Horseshoe Ent., 
    337 F.3d 429
    , 433 (5th Cir. 2003) (“[I]n our view disposition of that
    [transfer] motion should have taken a top priority in the
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    IN RE: APPLE INC.                                           3
    handling of this case by the . . . District Court.”); In re
    TracFone Wireless, Inc., 848 F. App’x 899, 900–01 (Fed. Cir.
    2021) (citing Horseshoe Ent., 
    337 F.3d at 433
    ); In re SK
    hynix Inc., 835 F. App’x 600, 600–01 (Fed. Cir. 2021); In re
    Google Inc., No. 2015-138, 
    2015 WL 5294800
    , at *1–2 (Fed.
    Cir. July 16, 2015); see also In re EMC Corp., 501 F. App’x
    973, 975–76 (Fed. Cir. 2013) (“Congress’ intent to prevent
    the waste of time, energy and money and to protect liti-
    gants, witnesses and the public against unnecessary incon-
    venience and expense . . . may be thwarted where, as here,
    defendants must partake in years of litigation prior to a
    determination on a transfer motion.” (internal quotation
    marks and citation omitted)).
    Apple contends that the district court clearly abused its
    discretion in ordering the parties to complete 30 more
    weeks of fact discovery while pressing forward on the mer-
    its and then spend another six weeks re-briefing the issue
    before deciding Apple’s transfer request. Apple notes that
    by the time the court plans on considering Apple’s motion,
    it will have been a full year after Apple initially sought
    transfer, and the parties will have completed fact discovery
    (with the Western District of Texas resolving all discovery
    disputes), served final infringement and invalidity conten-
    tions (with leave of court required for any subsequent
    amendment), 1 narrowed the number of asserted claims and
    prior art references to the number permitted by this dis-
    trict court, and exchanged preliminary trial exhibits and
    witness lists. Pet. at 1–2. We agree with Apple that the
    district court’s scheduling order goes too far.
    Aire “consents to resolving Apple’s transfer motion at
    any time, provided that no stay interfere with discovery,
    Markman proceedings, or the preparation of this case for
    1    Aire has already filed an opposed motion to amend
    its infringement contentions to include an additional claim.
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    4                                             IN RE: APPLE INC.
    trial.” ECF No. 9 at 2. 2 And precedent entitles parties to
    have their venue motions prioritized. See In re Apple Inc.,
    
    979 F.3d 1332
    , 1337 (Fed. Cir. 2020); see also Horseshoe
    Ent., 
    337 F.3d at 433
    . Applying that principle, the Third
    Circuit in McDonnell Douglas Corp. v. Polin, 
    429 F.2d 30
    ,
    30–31 (3d Cir. 1970), held that it is “not proper to postpone
    consideration of the application for transfer under
    § 1404(a) until discovery on the merits is completed,” as the
    district court has done in this case. Where, as here, the
    parties agree that no additional discovery or briefing is nec-
    essary and there are clearly less time-consuming and more
    cost-effective means for the court to resolve the motion (in-
    cluding considering whether the court should give less
    weight to certain evidence), it is a clear abuse of discretion
    to require the parties to expend additional party and court
    resources litigating the substantive matters of the case
    while Apple’s motion to transfer unnecessarily lingers on
    the docket.
    The district court took the view that by delaying the
    decision until after full fact discovery and re-briefing, it
    could reduce “speculation” and “allow the parties to provide
    the Court with the best evidence for ruling on a motion to
    transfer.” Appx1. Discovery on the transfer motion itself
    is sufficient to allow decision of that motion. 3 Moreover, an
    undue delay for a motion under § 1404(a), as other district
    courts have found, may unnecessarily require the
    2    A motion for reconsideration under these circum-
    stances might have provided an adequate alternative
    means to obtain the requested relief, but it appears futile
    here in light of the district court’s holding in its order deny-
    ing Apple’s motion for a stay pending this petition. ECF
    No. 18 at 6.
    3   In light of the parties’ concessions, further venue
    discovery is unnecessary here.
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    IN RE: APPLE INC.                                             5
    expenditure of judicial resources in both the transferor and
    transferee courts. 4 As the Third Circuit in Polin explained,
    “[j]udicial economy requires that another district court
    should not burden itself with the merits of the action until
    it is decided that a transfer should be effected and such
    consideration additionally requires that the court which ul-
    timately decides the merits of the action should also decide
    the various questions which arise during the pendency of
    the suit instead of considering it in two courts.” 
    429 F.2d at 30
    .
    For these reasons, we conclude that the district court
    clearly abused its discretion in issuing its scheduling order.
    We do not decide in this case (which does not present the
    issue) whether and the extent to which merits discovery
    may proceed pending discovery for a decision on a transfer
    motion. We determine only that decision of a transfer
    4    See, e.g., Zamora-Garcia v. Moore, No. M-05-331,
    
    2006 WL 3341034
    , at *4 (S.D. Tex. Nov. 16, 2006) (noting
    the potential “waste of judicial resources”); Moto Photo, Inc.
    v. K.J. Broadhurst Enters., Inc., No. 3:01-cv-2282-L, 
    2003 WL 298799
    , at *5 (N.D. Tex. Feb. 10, 2003) (filing of motion
    to transfer after parties had exchanged initial disclosures,
    amended their pleadings, and conducted preliminary dis-
    covery created possibility of undue delay if case were to be
    transferred and could be denied on that basis alone); FTC
    v. Multinet Mktg., LLC, 
    959 F. Supp. 394
    , 395–96 (N.D.
    Tex. 1997) (denying motion to transfer filed seven months
    after plaintiffs’ filing of action where “change of venue now
    is likely to upset the discovery and trial schedule and waste
    judicial resources”); Am. Airlines, Inc. v. Rogerson ATS,
    
    952 F. Supp. 377
    , 384 (N.D. Tex. 1996) (denying motion
    where transfer would disrupt scheduling order and create
    “substantial possibility of delay . . . since this Court has had
    the case for some time and is already familiar with many
    of its details”).
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    6                                           IN RE: APPLE INC.
    motion must proceed expeditiously as the first order of
    business and that venue discovery must proceed immedi-
    ately to enable such a prompt decision of the transfer mo-
    tion.
    Accordingly,
    IT IS ORDERED THAT:
    The petition and motion are granted to the extent that
    the district court’s amended scheduling order is vacated,
    and the district court is directed to postpone fact discovery
    and other substantive proceedings until after consideration
    of Apple’s motion for transfer.
    FOR THE COURT
    November 8, 2022                  /s/ Peter R. Marksteiner
    Date                         Peter R. Marksteiner
    Clerk of Court