ThermoLife International LLC v. Neogenis Labs Incorporated

District Court, D. Arizona·Decided August 2, 2021·No. 2:18-cv-02980·Unknown

Opinion

WO

ThermoLife International LLC, No. CV-18-02980-PHX-DWL

Plaintiff, ORDER

v.

Neogenis Labs Incorporated,

Defendant. NeoGenis Labs Incorporated,

Counter-Claimant,

v.

ThermoLife International LLC and Ronald L. Kramer, Counter-Defendants.

Last month, the Court granted ThermoLife’s motion to voluntarily dismiss its claims against HumanN. (Doc. 224.) However, HumanN’s counterclaims against ThermoLife and its president, Ronald L. Kramer (“Kramer”) (collectively, “ThermoLife”), remain pending, and HumanN has now moved to transfer those counterclaims to the Western District of Texas. (Doc. 227.) For the following reasons, the motion is denied. As discussed in earlier orders (Docs. 201, 224), this action has been pending for almost three years. Meanwhile, on February 11, 2021, ThermoLife filed a separate lawsuit against HumanN in the Western District of Texas (the “Texas Litigation”), alleging that three of HumanN’s products—SuperBeets, BeetElite, and Neo40—infringe three of its patents: Patent Nos. 9,180,140 (the “’140 Patent”), 8,455,531 (the “’531 Patent”), and 10,555,968 (the “’968 Patent”). (Doc. 174-1.) On April 7, 2021, HumanN filed an answer and asserted counterclaims against ThermoLife in the Texas Litigation. (Doc. 174-2.) HumanN’s three products and ThermoLife’s past assertions of infringement related to the ’140 and ’531 Patents (but not the ’968 Patent) are also at issue in this lawsuit. Recently, ThermoLife requested a stay of HumanN’s counterclaims in this action, arguing (among other things) that the Texas Litigation would “resolve legal disputes between the parties that [would] be dispositive to likely all of HumanN’s counterclaims.” (Doc. 189 at 4, 6-8.) HumanN disagreed, arguing that it would be prejudiced by a stay and questioning whether the issues in the Texas Litigation would be dispositive of the issues in this action. (Doc. 199.) The parties also disputed whether, assuming a stay was granted, voluntary dismissal of ThermoLife’s claims would be proper. (Doc. 189 at 8-10; Doc. 199 at 13-17; Doc. 200 at 9-11.) The Court denied ThermoLife’s stay request, concluding (among other things) that “even if a ruling in the Texas Litigation might simplify the issues in this case, ThermoLife [had] not shown that such potential for simplification would justify an indefinite stay of this action, which has been pending for almost three years and is on the cusp of the close of discovery, when the alternative is forcing this Court to await a ruling in a suit filed only a few months ago on issues it is fully capable of resolving itself in due course.” (Doc. 201 at 7.) And “because ThermoLife conditioned the voluntary dismissal of its claims on the granting of a stay, the dismissal request [was] denied as moot.” (Id. at 8.) Soon afterward, ThermoLife filed a renewed motion to voluntarily dismiss its claims against HumanN. (Doc. 202.) The Court granted ThermoLife’s request and imposed the following conditions of dismissal: (1) ThermoLife could not “refile the claims set forth in the Second Amended Complaint (‘SAC’) unless and until the Texas Litigation finally resolves, including all appeals”; (2) “if ThermoLife refile[d] the claims set forth in the SAC, it must refile them in this jurisdiction”; and (3) “if ThermoLife’s claims [were] refiled, the discovery that has been taken in this action may be used in the later-filed action.” (Doc. 224.) Thus, the sole remaining claims in this case are five of HumanN’s counterclaims: false advertising under the Lanham Act and state-law claims for unfair competition, tortious interference with business expectancy, trade libel, and violation of Arizona’s Patent Troll Prevention Act (“PTPA”). (Doc. 117 at 61-67.)1 During a recent telephonic discovery dispute hearing, HumanN’s counsel asked if the Court would “consider a motion to transfer [its] counterclaims to the [Texas Litigation] so that [the parties would] only [be] litigating in one forum.” (Doc. 233 at 66.) The Court stated that its “initial instinct [was], if the law supported it, [it] would be fine with that outcome” but that the Court would “need to see [the issue] briefed” and would “need to look at all the transfer factors . . . to decide whether it’s legally warranted.” (Id. at 67.) HumanN has now filed the pending transfer motion (Doc. 227), which ThermoLife opposes (Doc. 232).2 The motion is fully briefed. (Docs. 227, 232, 234.)3 I. Legal Standard Under 28 U.S.C. § 1404(a), a district court “may transfer any civil action to any other district or division where it might have been brought” if a transfer would promote “the convenience of parties and witnesses [and] the interest of justice.” Section 1404(a) thus vests courts with the discretion “to adjudicate motions for transfer according to an individualized, case-by-case consideration of convenience and fairness.” Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29 (1988) (internal quotation marks omitted). If the action could have originally been brought in the proposed transferee forum,

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