Federal Circuit Mandate Will Issue Despite a Pending Supreme Court Certiorari Due to Lack of Irreparable Harm

In American Axle & Manufacturing, Inc. v. Neapco Holdings LLC, Neapco Drivelines LLC, No. 2018-1763 (Fed. Cir. Oct. 23, 2020), the Federal Circuit denied the Plaintiff’s motion to stay issuance of a mandate pending a Supreme Court certiorari.

In a prior opinion, the Federal Circuit held claims of American Axle & Manufacturing’s (“AAM”) patent ineligible under 35 U.S.C. § 101. To prevent the Federal Circuit’s mandate from taking effect, AAM filed a motion to stay the mandate under Federal Rules of Appellate Procedure 41(d).

The Federal Circuit used a three-part test to determine whether AAM’s motion should be granted: Whether the movant showed (1) a reasonable probability that certiorari will be granted, (2) a “fair prospect” that the court above will reverse the judgment below, and (3) a likelihood of irreparable harm resulting from stay denial.

The Court agreed that AAM showed a reasonable probability that the Supreme Court would grant certiorari and reverse the Federal Circuit’s judgment. However, in denying AAM’s motion, the Court found an insufficient likelihood of irreparable harm, holding that a possibility of reversal by the Supreme Court and “significant burdens and expenses” accrued in petitioning for certiorari and subsequent litigation did not constitute irreparable harm.