Orenshteyn v. Citrix Systems, Inc.

558 F. Supp. 2d 1251, 2008 U.S. Dist. LEXIS 34606, 2008 WL 1902475
CourtDistrict Court, S.D. Florida
DecidedApril 28, 2008
Docket02-60478-CIV
StatusPublished
Cited by4 cases

This text of 558 F. Supp. 2d 1251 (Orenshteyn v. Citrix Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Orenshteyn v. Citrix Systems, Inc., 558 F. Supp. 2d 1251, 2008 U.S. Dist. LEXIS 34606, 2008 WL 1902475 (S.D. Fla. 2008).

Opinion

Order Awarding Fees and Costs to Citrix Systems

ADALBERTO JORDAN, District Judge.

Mr. Orenshteyn filed this action against Citrix Systems for patent infringement. I granted summary judgment against Mr. Orenshteyn, concluding that the undisputed evidence established that there was no infringement. Citrix subsequently filed a motion for sanctions under Rule 11 of the Federal Rules of Civil Procedure against Mr. Orenshteyn and his counsel, David Fink, Esq., and Timothy W. Johnson, Esq., of Fink & Johnson, arguing that neither Mr. Orenshteyn nor his counsel conducted a reasonable pre-filing investigation before filing this action. Citrix also filed a motion for attorneys’ fees and expenses against Mr. Orenshteyn pursuant to 35 U.S.C. § 285, against Fink & Johnson pursuant to 28 U.S.C. § 1927, and against Mr. Orensh-teyn and Fink & Johnson pursuant to the court’s inherent powers.

I found that Mr. Orenshteyn was liable to Citrix for sanctions only under Rule 11 and that his counsel were liable under both Rule 11 and 28 U.S.C. § 1927. I referred Citrix’s motion for sanctions to Magistrate Judge Torres for a report and recommendation on the amount of sanctions. Judge Torres recommended a sanction of $755,663.17.

Pending are Mr. Orenshteyn’s objections to the report and recommendation. Mr. Orenshteyn argues, in essence, that Judge Torres erroneously assumed that Citrix was entitled to recover all reasonable fees and costs incurred in this action. Upon de novo review, I adopt the report and recommendation in its entirety and grant Citrix’s motion for fees and costs [D.E. 183] in part. A sanction of $755,663.17 — approximately $300,000 less than the fees and costs actually incurred by Citrix in this action — is a reasonable amount to deter any future violation of the pre-filing ethical obligations. See Baker v. Aiderman, 158 F.3d 516, 528 (11th Cir.1998) (“[i]n determining the amount of sanctions ... deterrence remains the touchstone of the Rule 11 inquiry”). Given Mr. Orenshteyn’s and his counsel’s financial ability and the amount of resources that Citrix had to expend in defending this frivolous action, any lesser sanction would not be a deterrent. See id. at 530 (court “must consider financial ability in the award of sanctions”).

Mr. Orenshteyn correctly points out that different standards apply to the determination of the amount of sanctions under Rule 11 and under § 1927. I, however, find that a $755,663.17 sanction is appropriate under Rule 11, irrespective of § 1927. As such, any distinction in the applicable standard has no legal significance in this case. Accord Amlong & Amlong, P.A. v. Denny’s Inc., 500 F.3d 1230, 1238 (11th Cir.2007) (when a district court issues sanctions based on multiple sources, the reviewing court need only find that sanctions were permissible under at least one source).

I also reject Mr. Orenshteyn’s argument that Magistrate Judge Torres failed to consider that Citrix unnecessarily delayed this action. Even if Mr. Orenshteyn were correct, I conclude that the $755,663.17 award accurately reflects the appropriate sanction here based on the conduct of all the parties, including the conduct of Citrix and its lawyers.

*1254 Further, because the recommended sanction is warranted under Rule 11, independently from § 1927, I also adopt the recommendation that Mr. Orenshteyn and his counsel are jointly and severally responsible for the full sanction.

Accordingly, Citrix is awarded a total of $755,663.17 in sanctions against Alexander Orenshteyn, David Fink, and Timothy W. Johnson, of Fink & Johnson jointly and severally, for which let execution issue.

DONE and ORDERED.

REPORT AND RECOMMENDATION ON DEFENDANT’S MOTION FOR ATTORNEYS’ FEES AND EXPENSES

EDWIN G. TORRES, United States Magistrate Judge.

This matter is before the Court on Defendant’s Motion for Attorneys’ Fees and Expenses [D.E. 183,184] that was referred to the undersigned by the Honorable Adal-berto Jordan for a Report and Recommendation pursuant to 28 U.S.C. § 636 and S.D. Fla. Mag. J.R. 4(b) [D.E. 253, 254]. The pending motion is ripe for disposition. Upon review of the record in this case and all relevant pleadings filed in connection with the Motion for Attorneys’ Fees and related sanctions motions, and for the reasons that follow, Defendants’ request for attorneys’ fees and expenses should be Granted in Part and Denied in Part.

I. BACKGROUND

As Judge Jordan’s Order of January 5, 2007 details, Plaintiff alleged that Defendant had infringed on two patents issued to him: United States Patent Number 5,889,942 (“the '942 patent”), entitled “Secured System for Accessing Application Services from a Remote Station,” issued to Plaintiff on March 30, 1999; and United States Patent Number 6,393, 569 (“the '569 patent”), entitled “Secured System for Accessing Application Services from a Remote Station,” issued to Plaintiff on May 21, 2002. On April 2, 2002, Plaintiff filed suit against Defendant, alleging that Defendant “has for a long time past infringed and still is infringing, actively inducing the infringement of, and contributorily infringing at least claim 1” of the '942 and '569 patents. Defendant subsequently moved for summary judgment on the issues of non-infringement and invalidity, arguing that the undisputed evidence revealed that none of the alleged products infringed on the claims of either the '942 or '569 patents, and that those patents were fully anticipated by at least five prior arts.

The Court ultimately agreed with Defendant and granted summary judgment in its favor on the infringement issue. At the summary judgment stage, Plaintiff did not provide evidence that Defendant’s claim construction directly contradicted the patent specifications; Plaintiff also failed to offer a viable alternative to the claim construction Defendant asserted. Additionally, Plaintiff did not present sufficient evidence that the accused products infringed on each and every claim of his patents. At summary judgment, Plaintiff submitted evidence seeking to show that one of the accused products infringed on only one claim — claim 1 — of his '942 patent, but offered no evidence relating to any of the other claims allegedly infringed. The evidence provided to show infringement of claim 1 of the '942 patent was insufficient to require a trial.

Defendant then moved for attorneys’ fees and costs via four distinct sources of legal authority.

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Related

Katz v. Chevaldina
127 F. Supp. 3d 1285 (S.D. Florida, 2015)
In re Orenshteyn
500 B.R. 305 (D. Massachusetts, 2013)
Williams v. R.W. Cannon, Inc.
657 F. Supp. 2d 1302 (S.D. Florida, 2009)
Orenshteyn v. Citrix Systems, Inc.
341 F. App'x 621 (Federal Circuit, 2009)

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Bluebook (online)
558 F. Supp. 2d 1251, 2008 U.S. Dist. LEXIS 34606, 2008 WL 1902475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orenshteyn-v-citrix-systems-inc-flsd-2008.