July 6, 2022
Authored and Edited by Angeline L. Premraj; Christina Ji-Hye Yang; Elizabeth D. Ferrill
In Static Media LLC v. Leader Accessories LLC, No. 21-2303 (Fed. Cir. Jun. 28, 2022), the Federal Circuit reversed the district court’s contempt order against Leader and its attorney, and its grant of sanctions and attorney’s fees.
The parties entered a protective order stating that “Confidential” documents could only be disclosed to non-parties who execute a “Written Assurance.” Leader joined a joint defense group with a third-party, OJ Commerce, who was sued in a different court. Leader’s attorney sent Static’s financial documents to OJ Commerce’s attorney, who used the documents for settlement negotiations. The district court found Leader and its attorney in contempt and ordered attorney’s fees and sanctions.
The Federal Circuit reversed. First, the Federal Circuit held that there is no clear and convincing evidence to support the district court’s conclusion that Leader should have known that OJ Commerce would violate the protective order. Second, the Federal Circuit held that Leader’s disclosure of Static’s confidential information to develop a joint defense strategy was not improper. The word “use” in the protective order implied disclosure to those that are not signatories to the protective order.
Judge Reyna dissented, stating that the district court was entitled to deference in discovery sanctions.
Copyright © 2022 Finnegan, Henderson, Farabow, Garrett & Dunner, LLP.
DISCLAIMER: Although we wish to hear from you, information exchanged in this blog cannot and does not create an attorney-client relationship. Please do not post any information that you consider to be personal or confidential. If you wish for Finnegan, Henderson, Farabow, Garrett & Dunner, LLP to consider representing you, in order to establish an attorney-client relationship you must first enter a written representation agreement with Finnegan. Contact us for additional information. One of our lawyers will be happy to discuss the possibility of representation with you. Additional disclaimer information.
June 10-12, 2024
San Francisco
Lecture
Patent Protection for Software-Related Inventions in Europe and the USA Training Course
June 5, 2024
Hybrid
10th Annual Georgia Asian Pacific American Bar Association Gala
May 29, 2024
Atlanta
Due to international data regulations, we’ve updated our privacy policy. Click here to read our privacy policy in full.
We use cookies on this website to provide you with the best user experience. By accepting cookies, you agree to our use of cookies. Please note that if you opt not to accept or if you disable cookies, the “Your Finnegan” feature on this website will be disabled as well. For more information on how we use cookies, please see our Privacy Policy.
Finnegan is thrilled to announce the launch of our new blog, Ad Law Buzz, devoted solely to breaking news, developments, trends, and analysis in advertising law.