Cold Spring Harbor Laboratory v. Ropes & Gray LLP

840 F. Supp. 2d 473, 101 U.S.P.Q. 2d (BNA) 1834, 2012 WL 112642, 2012 U.S. Dist. LEXIS 4344
CourtDistrict Court, D. Massachusetts
DecidedJanuary 13, 2012
DocketCivil Action No. 11-10128-RGS
StatusPublished
Cited by1 cases

This text of 840 F. Supp. 2d 473 (Cold Spring Harbor Laboratory v. Ropes & Gray LLP) 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
Cold Spring Harbor Laboratory v. Ropes & Gray LLP, 840 F. Supp. 2d 473, 101 U.S.P.Q. 2d (BNA) 1834, 2012 WL 112642, 2012 U.S. Dist. LEXIS 4344 (D. Mass. 2012).

Opinion

MEMORANDUM AND ORDER ON DEFENDANTS’ MOTIONS TO DISMISS

STEARNS, District Judge.

In this legal malpractice action, plaintiff Cold Spring Harbor Laboratory (CSHL) alleges that defendants Ropes & Gray LLP (R & G), and Matthew P. Vincent, a former partner at R & G, mishandled the prosecution of a series of patent applications on behalf of CSHL before the United States Patent and Trademark Office (PTO). Presently before the court are defendants’ motions to dismiss. The court heard oral argument on January 10, 2012.

[475]*475BACKGROUND

CSHL is a leading biomedical research and educational institution, with a principal place of business in Cold Spring Harbor, New York. Am. Compl. ¶¶ 1, 13, 15. Defendant R & G is a Delaware limited liability partnership with its principal place of business in Boston, Massachusetts. Id. ¶ 2. Defendant Vincent was, until April of 2009, a registered patent attorney and a partner in R & G’s Intellectual Property Group. Id. ¶ 3. Dr. Gregory Hannon is a Professor and Howard Hughes Medical Institute Investigator at CSHL. Id. ¶ 7. The Hannon laboratory at CSHL is involved in the study of a cellular mechanism called RNA interference (RNAi), and its application in the search for a cure for cancer.1 Id. Starting in 1999, Hannon and his colleagues at CSHL (collectively, Hannon) developed methods and technologies to regulate gene expression by using synthetic RNA molecules called short hairpin RNAs (shRNAs). Id.2

From 2001 until late 2008, R & G acted as principal outside patent prosecution counsel for CSHL.3 Id. ¶ 22. Vincent was the R & G attorney primarily involved in the drafting and prosecution of all of the Hannon patent applications. Id. ¶ 23. CSHL alleges that

[w]hen Vincent drafted the three earliest non-provisional Hannon Applications (U.S. patent applications nos. 09/858,-862, filed May 16, 2001, 09/866,557, filed March 24, 2001 and international patent application PCT/US0 1/08345, filed March 16, 2001), rather than providing an original, complete description of Dr. Hannon’s work, Vincent instead relied upon copying extensive portions of text — essentially verbatim — from a pri- or patent application (WO/99/32619) published by a team led by another researcher in the [RNAi] field, Dr. Andrew Fire ... to at least, in part, describe Dr. Hannon’s inventions.

Id. ¶ 9.4 According to CSHL, “[a]bout one half of the ‘Detailed Description of Certain Preferred Embodiments’ found in the three earliest filed Hannon Applications consists of text copied from the Fire application.” Id. On August 11, 2005, the PTO issued a Notice of Allowance for the pending '557 (Hannon) application claims. However, the PTO subsequently withdrew [476]*476the '557 application from issue, and on September 6, 2006, the PTO examiner rejected all pending claims as anticipated by the Fire Patent. Id. ¶ 39.

CSHL alleges that in follow-up communications with the PTO, “Vincent and R & G continued to rely on text copied from Fire despite the fact that this risked the false implication that Dr. Hannon’s shRNA technology was either something that Fire invented or was suggested by the Fire application.” Id. ¶ 37. According to CSHL, “neither R & G nor Vincent ever brought the fact of this copying of the Fire text, and the potential prejudice resulting from that copying, to the attention of Dr. Hannon and CSHL.” Id. ¶ 11.

In early 2008, Dr. Vladimir Drozdoff, a Senior Licensing Associate and Patent Attorney for CSHL’s Office of Technology Transfer, reviewed Vincent’s prosecution of the Hannon patent applications. Id. ¶ 50. Through this investigation, CSHL became aware, for the first time, of the copying of a substantial amount of text from the Fire Specification. Id. ¶ 54. On April 1, 2008, Drozdoff and John Maroney, the Vice President, Legal Counsel, and Director of CSHL’s Office of Technology Transfer, met with Vincent and R & G partner James Haley. Id. ¶¶ 41, 58. At the meeting, Vincent acknowledged that in filing the Hannon patent applications, he was aware that portions had been copied from the Fire Specification. Id. ¶ 58. CSHL requested R & G’s cooperation in bringing the copying to the attention of the PTO. Id. ¶ 57. R & G refused to assist CSHL without first obtaining a signed waiver releasing R & G from any future liability. Id. ¶ 59. CSHL refused to sign such a waiver. Pl.’s Opp’n at 6.5

In late April of 2009, R & G fired Vincent. Am. Compl. ¶ 4. On July 20, 2009, Vincent resigned from the practice of law and surrendered his Massachusetts bar license. Id. Vincent’s resignation was precipitated by “a disciplinary investigation revolving around his having, for more than six years, under cover of a separate company which he formed [the IP Resource Company], billed and collected from R & G’s clients more than $700,000 for work that could not be substantiated or verified, purportedly without R & G’s knowledge that he owned said company.” Id. While serving as CSHL’s counsel, R & G billed and collected approximately $10,000 from CSHL under the guise of work allegedly performed by the IP Resource Company. Id. ¶ 77.

On February 16, 2010, CSHL filed a complaint against R & G and Vincent in the United States District Court for the Eastern District of New York. On March 23, 2010, defendants filed motions to dismiss the Complaint pursuant to Rules 12(b)(3) and 12(b)(6) of the Federal Rules of Civil Procedure. On January 22, 2011, 762 F.Supp.2d 543 (E.D.N.Y.2011), the New York court granted defendants’ motion to dismiss for improper venue and transferred the case to the District of Massachusetts. On August 10, 2011, CSHL filed an Amended Complaint alleging claims of legal malpractice, breach of fiduciary duty, fraud and fraudulent concealment, and negligence against R & G and Vincent. On August 24, 2011, defendants filed motions to dismiss the Amended Complaint pursuant to Rule 12(b)(6).

DISCUSSION

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, [477]*4771949, 173 L.Ed.2d 868 (2009) (internal quotation omitted). “When there are well-pleaded factual allegations, a court should assume their veracity and then determine whether they plausibly give rise to an entitlement to relief.” Id. at 1950. In Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), the Supreme Court explained that “[w]hile a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiffs obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do....” Id. at 555, 127 S.Ct. 1955 (internal citations and quotations omitted).

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840 F. Supp. 2d 473, 101 U.S.P.Q. 2d (BNA) 1834, 2012 WL 112642, 2012 U.S. Dist. LEXIS 4344, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cold-spring-harbor-laboratory-v-ropes-gray-llp-mad-2012.