Inline Connection Corp. v. AOL Time Warner Inc.

237 F.R.D. 361, 2006 U.S. Dist. LEXIS 59616, 2006 WL 2440822
District Court, D. Delaware·Decided August 23, 2006·No. Nos. CIV.A. 02-272-MPT, CIV.A. 02-477-MPT·Published·Cited by 4 cases

Opinion

MEMORANDUM OPINION

THYNGE, United States Magistrate Judge.

Currently pending is America Online Inc.’s (“AOL”) and EarthLink, Inc.’s (“EarthLink”) Motion For Leave to File Third Amended and Supplemental Answer and Counterclaims (“Third Amended Answers”).

I. FACTUAL BACKGROUND

This is a patent infringement case. Inline Communication Corporation (“inline”)1 sued AOL2 and AOL Time Warner Incorporated (“Time Warner”)3 on April 12, 2002, and EarthLink4 on June 4, 2002, alleging infringement of U.S. Patent Nos. 5,844,596 (“the ’596 patent”), 6,243,446 (“the ’446 patent”), and 6,236,718 (“the ’718 patent”). On June 24, 2002, AOL filed its Answer and Counterclaims,5 raising various defenses and counterclaims, including prosecution laches. On August 23, 2002, EarthLink filed its Answer and Counterclaims,6 raising various defenses and counterclaims, including prosecution laches.

The original scheduling order in this case set a deadline for amendment of pleadings on March 28, 2003.7 Defendants moved for an extension of the amendment deadline to April 18, 2003, which motion was granted on March 27, 2003.8

On April 18, 2003, Inline moved for leave to file amended complaints against AOL and Time Warner,9 and against EarthLink,10 to add newly-issued U.S. Patent No. 6,542,585 (“the ’585 patent”) to this litigation,11 which was granted on May 1, 2003 and which order also extended the time for defendants to file [363] amended pleadings.12 On May 15 and 16, 2003, EarthLink and AOL, respectively, filed their Second Amended Answer and Counterclaims (“Second Amended Answers”),13 asserting various affirmative defenses and counterclaims, including inequitable conduct and prosecution laches. Fact discovery was already near conclusion at the time of these pleadings, and closed shortly thereafter.14

On April 23, 2004, the Court entered the parties’ Joint Stipulation and Order of Dismissal, dismissing Time Warner from the case.15

The court conducted a Markman hearing on August, 28 2003,16 and ruled on claims construction, cross-motions for summary judgment, and motions for reconsideration in 2004 and 2005.17

On February 9, 2006, defendants provided supplemental interrogatory responses to Inline which included most of the factual information concerning the prosecution laches and inequitable conduct allegations that is the subject of their proposed amended pleadings.18 On February 15, 2006, AOL provided Inline a copy of its draft Third Amended Answer, advised Inline that EarthLink sought to amend and supplement its answer and counterclaims to include the same supplemental allegations as AOL regarding inequitable conduct and prosecution laches, and requested Inline’s consent to the filing of those amended pleadings.19 On February, 22, 2006, the parties met and conferred to discuss, among other issues, the filing of defendants’ Third Amended Answers.20 During the meet and confer, Inline refused to consent to the filing of defendants’ proposed amended pleadings, except with respect to the amendment and supplementation pertaining to the dismissal of Time Warner.21

On April 19, 2006, defendants filed their motion, pursuant to Federal Rule of Civil Procedure 15 and Delaware Local Rule 15.1, for an order granting them leave to each file their Third Amended Answer.22 Defendants assert that the purpose of its proposed amendments is to conform the pleadings to the evidence adduced in discovery.

Inline opposes defendants’ motion on Rule 15 grounds arguing undue delay on the part of defendants in seeking leave to file the Third Amended Answers and prejudice to Inline should defendants’ motion be granted. Inline also opposes defendants’ motion alleging a failure to establish good cause to modify the court’s scheduling order as required by Federal Rule of Civil Procedure 16(b).

This opinion is the court’s ruling on defendants’ motion.

II. DISCUSSION

First, AOL asserts that its proposed Third Anended Answers reflect the fact that Inline has dismissed defendant Time Warner from the suit with prejudice and states that all allegations against Time Warner are therefore moot. Because there does not appear to be a dispute over this issue,23 the court grants defendants’ motion on this issue.

[364] Next the court considers defendants’ proposed amended pleadings as they concern prosecution laches and inequitable conduct allegations. The court ordinarily considers motions to amend pleadings under Rule 15(a), which states that “[a] party may amend the party’s pleading by leave of the court ... and leave shall be freely given when justice so requires.”24 Although the determination of whether to grant or deny a motion to amend is within the discretion of the court, the Supreme Court of the United States has instructed that leave to amend should be freely granted “[i]n the absence of ... undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc.”25

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Inline Connection Corp. v. AOL Time Warner Inc., 237 F.R.D. 361, 2006 U.S. Dist. LEXIS 59616, 2006 WL 2440822 (D. Del. 2006).

237 F.R.D. 361 (Inline Connection Corp. v. AOL Time Warner Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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