AngioDynamics, Inc. v. Biolitec, Inc.

974 F. Supp. 2d 1, 2013 U.S. Dist. LEXIS 121792, 2013 WL 5464627
CourtDistrict Court, D. Massachusetts
DecidedAugust 27, 2013
DocketC.A. No. 09-CV-30181-MAP
StatusPublished
Cited by2 cases

This text of 974 F. Supp. 2d 1 (AngioDynamics, Inc. v. Biolitec, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AngioDynamics, Inc. v. Biolitec, Inc., 974 F. Supp. 2d 1, 2013 U.S. Dist. LEXIS 121792, 2013 WL 5464627 (D. Mass. 2013).

Opinion

MEMORANDUM AND ORDER REGARDING DEFENDANTS’ AMENDED MOTION FOR RELIEF FROM CONTEMPT ORDER; DEFENDANTS’ MOTION FOR RECU-SAL, AND DEFENDANTS’ MOTION TO VACATE PRELIMINARY INJUNCTION (Dkt. Nos. 269, 274, 277)

PONSOR, District Judge.

I. INTRODUCTION

Defendants Biolitec AG (“BAG”), Biomed Technology Holdings Ltd. (“Biomed”), and Wolfgang Neuberger1 have filed a motion for relief from the contempt order issued against them (Dkt. 269), a motion for recusal (Dkt. 274) and a motion to vacate the preliminary injunction (Dkt. No. 277) issued by this court. This injunction, affirmed on appeal by the First Circuit, barred Defendants from proceeding with a merger of BAG, a German corporation, with its Austrian subsidiary. For the reasons set forth below, all these motions will be denied.

II. FACTS

The complex background underlying this litigation has been detailed in a number of prior decisions. AngioDynamics, Inc. v. Biolitec, Inc., 2011 WL 3157312, *1-2 (D.Mass. July 25, 2011); AngioDynamics, Inc. v. Biolitec AG, 910 F.Supp.2d 346 (D.Mass.2012). The facts supporting the court’s civil contempt order and its referral of the case to the United States Attorney for possible initiation of charges for [4]*4criminal contempt are set forth at length in the order of April 11, 2013. AngioDynamics, Inc. v. Biolitec AG, 946 F.Supp.2d 205 (D.Mass.2013). The journey of this case has been somewhat tortuous, but the rulings on Defendants’ three motions do not require a lengthy re-hashing, beyond, as will be seen, a few basic facts.

This phase of the dispute largely centers on the preliminary injunction issued by this court on September 13, 2012. (Dkt. No. 141.) The order enjoined Defendants from “carry[ing] out the proposed ‘downstream merger’ of [BAG] with its Austrian subsidiary.” (Id.) The injunction was upheld on reconsideration by this court and, as noted, upon subsequent appeal to the First Circuit. AngioDynamics, Inc. v. Biolitec AG, 910 F.Supp.2d 346 (D.Mass.2012); AngioDynamics, Inc. v. Biolitec AG, 711 F.3d 248 (1st Cir.2013). On March 15, 2013, Defendants notified the court that, in the teeth of the injunction, they had knowingly and intentionally proceeded with the enjoined merger anyway, and it had been completed. (Dkt. No. 199.)

On April 10, 2013, after a show cause hearing, the court ordered that Plaintiffs request for initiation of possible criminal contempt proceedings against the individual defendant Neuberger be referred to the United States Attorney’s Office. The court also found all Defendants in civil contempt and handed down an order designed to coerce Defendants into taking immediate remedial action to bring them into compliance with the preliminary injunction. The court issued an arrest warrant for Defendant Neuberger — who had been invited to attend the show cause hearing to explain his actions but failed to appear — to permit the court to consider appropriate civil sanctions against him personally. In addition, the court established the following schedule of coercive fines intended to compel Defendants to initiate immediate action to return BAG to the status quo as it existed prior to the enjoined merger:

• On May 10, 2013, Defendants to be assessed a fine of $1 million;

• On June 1, 2013, Defendants to be assessed a fine of $2 million;

• On July 1, 2013, Defendants to be assessed a fine of $4 million;

• On August 1, 2013, Defendants to be assessed a fine of $8 million;

• After August 1, Defendants to be assessed a fine of $8 million on the first of each month.

AngioDynamics, Inc. v. Biolitec AG, 946 F.Supp.2d at 214, 2013 WL 1567739, at *6. The court noted that the sanctions would be lifted as soon as the court was satisfied that effective actions had been taken to revoke the forbidden merger and restore the status quo ante. Id. During the hearing, the court also observed that it would immediately consider any plan offered by Defendants to revoke, eliminate, or in any practical way render nugatory, Defendants’ action in defying the court’s order and proceeding with the merger. In the event that the plan set Defendants on a clear course to erase the barred merger, the court possessed the power to revoke the sanctions. (Dkt. No. 248, Tr. Contempt Hr’g 45:4-11.)

More than four months have now passed since the court’s finding of contempt. As will be seen below, Defendants appear to recognize that it would be possible, though cumbersome and somewhat time-consuming (a matter of months), to take action that would effectively reverse the merger. Nevertheless, Defendant Neuberger has not appeared, and no plan has been offered by Defendants even to begin to do this. Instead, Defendants have filed a motion for relief from the contempt order (Dkt. [5]*5No. 269), a motion for recusal (Dkt. No. 274), and a motion to vacate the preliminary injunction (Dkt. No. 277).

III. DISCUSSION

A. Relief From the Contempt Order.

Defendants ask the court to grant them “relief’ from the contempt order — essentially, to revoke the order — pursuant to Fed.R.Civ.P. 59(e), 60(b)(4), and 60(b)(6).

The request under Rule 59(e) may be quickly disposed of. A motion under this rule “must be filed no later than 10 days after the entry of judgment.” Fed. R.Civ.P. 59(e). The court entered its civil contempt order on April 10, 2013; Defendants submitted their first motion for relief (later amended) on May 9, 2013 — four weeks after the contempt order was entered and only one day before the fines designed to coerce compliance were to commence. The motion is therefore untimely. In addition, a movant invoking Rule 59(e) must show “manifest errors of law or fact, newly discovered or previously unavailable evidence, manifest injustice, [or] an intervening change in controlling law.” Marie v. Allied Home Mortg. Corp., 402 F.3d 1, 7 n. 2 (1st Cir.2005) (quoting 11 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2810.1 (2d ed.1995)). As will be shown in the discussion regarding relief under Rule 60, Defendants could not meet this burden even if their motion under 59(e) was timely-

Pursuant to Rule 60, Defendants ask the court to provide relief for two reasons: (1) the judgment is void under Rule 60(b)(4); and (2) other reasons justify relief, Rule 60(b)(6). It is well established that relief under Rule 60 is “extraordinary” and that “motions invoking that rule should be granted sparingly.” Karak v. Bursaw Oil Corp., 288 F.3d 15, 19 (1st Cir.2002).2 “At a bare minimum,” the moving party must show “that his motion is timely; that exceptional circumstances fexist, favoring extraordinary relief; that if the judgment is set aside, he has the right stuff to mount a potentially meritorious claim or defense; and that no unfair prejudice will accrue to the opposing parties should the motion be granted.”

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Related

AngioDynamics, Inc. v. Biolitec AG
780 F.3d 420 (First Circuit, 2015)

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Bluebook (online)
974 F. Supp. 2d 1, 2013 U.S. Dist. LEXIS 121792, 2013 WL 5464627, Counsel Stack Legal Research, https://law.counselstack.com/opinion/angiodynamics-inc-v-biolitec-inc-mad-2013.