In Re: Cutsforth, Inc. ( 2017 )


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  • Case: 17-135   Document: 15     Page: 1    Filed: 11/15/2017
    NOTE: This order is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    In re: CUTSFORTH, INC.,
    Petitioner
    ______________________
    2017-135
    ______________________
    On Petition for Writ of Mandamus to the United
    States District Court for the District of Minnesota in No.
    0:12-cv-01200, Judge Susan Richard Nelson.
    ______________________
    ON PETITION
    ______________________
    Before TARANTO, CHEN, and HUGHES, Circuit Judges.
    TARANTO, Circuit Judge.
    ORDER
    Cutsforth, Inc., petitions for a writ of mandamus
    directing the United States District Court for the District
    of Minnesota to vacate its order transferring this case to
    the United States District Court for the Western District
    of Pennsylvania. Defendants MotivePower, Inc., LEMM
    Liquidating Company, LLC, and Westinghouse Air Brake
    Technologies Corporation oppose.
    This petition stems from a suit filed by Cutsforth in
    May 2012 in the District of Minnesota accusing defend-
    ants of patent infringement. Defendants did not initially
    Case: 17-135    Document: 15      Page: 2    Filed: 11/15/2017
    2                                      IN RE: CUTSFORTH, INC.
    dispute the propriety of venue; to the contrary, their
    several answers to Cutsforth’s complaint admitted the
    complaint’s allegation of venue. Proceedings were stayed
    pending inter partes review of the asserted patents until
    the district court lifted the stay in September 2016.
    After the Supreme Court issued its decision in TC
    Heartland LLC v. Kraft Foods Group Brands LLC, 137 S.
    Ct. 1514 (2017), defendants moved for leave to amend
    their answers to assert a defense of improper venue and
    to transfer the case under 28 U.S.C. § 1406(a). They
    argued that the requirements of 28 U.S.C. § 1400(b) were
    not satisfied as now understood in light of TC Heartland.
    And they argued that TC Heartland was an intervening
    change of law such that their failure to make a venue
    objection earlier was not a waiver of the objection under
    Federal Rule of Civil Procedure 12(g)(2) and (h)(1)(A).
    The district court agreed with defendants that, before
    TC Heartland, they did not have available to them the
    argument that, because they are not incorporated in
    Minnesota, they did not “reside[]” there under § 1400(b).
    Mem. Op. & Order, Cutsforth, Inc. v. LEMM Liquidating
    Co., LLC, et al., No. 12-cv-1200 (D. Minn. Aug. 4, 2017),
    Dkt. No. 419, at 6–9. For that reason, the court held that
    they did not waive their venue objection under Federal
    Rule of Civil Procedure 12(g)(2) and (h)(1)(A). 
    Id. at 5,
    9–
    10.
    The court went on to note “the waste of judicial re-
    sources after five years of litigation, and the burden that
    must now be imposed on a district unfamiliar with this
    case,” and to state “that [a] transfer will lead to additional
    cost and delay and unquestionably prejudices Cutsforth.”
    
    Id. at 12–13.
    Even so, the court concluded, “the law of
    venue exists for the convenience of defendants, not plain-
    tiffs, and under 28 U.S.C. § 1406(a), prejudice to the
    plaintiff is not a relevant consideration.” 
    Id. at 12.
    The
    court therefore granted the motion and transferred the
    Case: 17-135    Document: 15     Page: 3    Filed: 11/15/2017
    IN RE: CUTSFORTH, INC.                                    3
    case to the Western District of Pennsylvania.         See
    Cutsforth, Inc. v. LEMM Liquidating Co., LLC, et al., No.
    17-cv-1025-CB (W.D. Pa.).
    Cutsforth then filed this petition for a writ of manda-
    mus. Cutsforth argues that the transfer order should be
    vacated because the district court erred in its analysis of
    whether the venue defense was waived in this case.
    A party seeking a writ bears the burden of demon-
    strating that it has no “adequate alternative” means to
    obtain the desired relief, Mallard v. U.S. Dist. Court for
    the S. Dist. of Iowa, 
    490 U.S. 296
    , 309 (1989), and that the
    right to issuance of the writ is “clear and indisputable,”
    Will v. Calvert Fire Ins., 
    437 U.S. 655
    , 666 (1978) (citation
    and internal quotation marks omitted). The court must
    also be satisfied that the issuance of the writ is appropri-
    ate under the circumstances. Cheney v. U.S. Dist. Court
    for the Dist. of Columbia, 
    542 U.S. 367
    , 381 (2004).
    We recently held that the Supreme Court’s decision in
    TC Heartland effected a relevant change of law and, more
    particularly, that failure to present the venue objection
    earlier did not come within the waiver rule of Federal
    Rule of Civil Procedure 12(g)(2) and (h)(1)(A). In re Mi-
    cron, No. 17-138 (Fed. Cir. Nov. 15, 2017). We further
    explained, however, that Rule 12(h)(1) is not the only non-
    merits basis on which a defendant might lose a venue
    defense. 
    Id. at 13.
    In light of In re Micron, the district
    court in the present case here clearly erred in not consid-
    ering non-Rule 12 bases for waiver raised by Cutsforth.
    Mandamus relief is therefore appropriate to direct the
    court to reconsider its decision in light of In re Micron.
    Accordingly,
    IT IS ORDERED THAT:
    The petition is granted. The district court’s order
    granting defendants’ motion to transfer for improper
    venue is vacated, and the court is instructed to recall any
    Case: 17-135   Document: 15   Page: 4   Filed: 11/15/2017
    4                                  IN RE: CUTSFORTH, INC.
    case files from the U.S. District Court for the Western
    District of Pennsylvania. The case is remanded for fur-
    ther proceedings consistent with this opinion.
    FOR THE COURT
    /s/ Peter R. Marksteiner
    Peter R. Marksteiner
    Clerk of Court
    s32
    

Document Info

Docket Number: 17-135

Filed Date: 12/1/2017

Precedential Status: Non-Precedential

Modified Date: 4/18/2021