Contempt and attorney-fee motions are rarely received warmly by courts. Last week was no exception. And a 101 decision that proves pleadings matter.
SPEAKERS
Wayne Stacy, Michael Smith
Wayne Stacy 00:01
Welcome, everyone to the Berkeley Center for Law and Technology's Last Week in Texas podcast. I'm your host, Wayne Stacy, the Executive Director for BCLT. And once again, we have Texas expert, and all around Civil Procedure expert, Michael Smith with us. Mike, thank you for joining us again.
Michael Smith 00:21
Thank you for having me Wayne.
Wayne Stacy 00:23
Michael, tell us what happened in Texas last week?
Michael Smith 00:26
Well, we had some interesting cases, come out of several districts in Texas, let me start with Eastern District Judge Gillstrap granted a motion to dismiss for unpatentable subject matter. And that's a relatively unusual order. In that the judges usually find that you haven't met the burden on that. But in this case, the court found that the first step was meant that the patent was directed to an abstract concept. But when he got to the second one, he said, there's a clear absence of factual allegations to support the eligibility, the patents in suit. So he said that I'm going to grant the motion and dismiss the case, because there just aren't factual allegations to get you over the finish line and get you in front of a jury on this. But because he said, it wasn't that the defendant met their burden to show that it was unpatentable subject matter. It was more of a 12b6 trombly issue of you just haven't plated it. He said, I'm going to dismiss it but dismissed without prejudice, which is a little bit of an unusual resolution, but at least the defendant got their dismissal.
Wayne Stacy 01:40
So it seems like the thing everybody should take away from this is not to get excited that 101 is now alive and flourishing in the Eastern District. But that procedures matter, you need to get your pleadings done correctly, you need to plead the correct facts. And if you don't, you're going to get at least one chance to try to correct your pleadings.
Michael Smith 02:02
Right. And I actually had that in a case earlier this week, where a part the judge said, Okay, I think the defendant wins on this and in terms of the plaintiff and says, Okay, do you want to just take the order and take it up on appeal? Or do you want to replea? But he did at least give them a dismissal without prejudice. So you're right of procedure matters. Facts matter. You need to have facts in your complaint, you need to make sure you've got what the court needs in order to give you the ruling that you need. That's the thing we're seeing in the last few weeks.
Wayne Stacy 02:37
So Michael, why here dismiss rather than, I guess, encourage them to replea?
Michael Smith 02:46
Well, I thought that was kind of unusual, because I have seen before, it's pretty common when you get a defendant that shows that they're entitled to a 12b6 dismissal a plaintiff gets an opportunity to replea. And I guess that is what is actually happening here. It's a dismissal, but it's without prejudice. So they could simply file a new suit and replea, the only procedural distinction is because it's already been dismissed once the plaintiff isn't going to be able to dismiss it again, the next time they asserted a dismissal at that stage would be dismissal on merits. I'm not real sure why he didn't say they can plead. It may have been that in the briefing, it beca