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Offer of judgment providing full recovery mooted case, preventing opinion regarding spoliation

By McKee, Voorhees & Sease, P.L.C.

In a decision Tuesday, the Federal Circuit vacated a district court's order denying a declaratory judgment plaintiff attorney fees, but including a scathing description of alleged spoliation by the patentee/DJ defendant.  The Federal Circuit held that the district court's decision was an improper advisory opinion, and therefore vacated with instructions to dismiss.

The patentee, before bringing suit against several defendants, shredded over two million documents on what it called "shred day."   In an effort to avoid having a formal court opinion holding it had engaged in spoliation, the patentee offered to pay the DJ plaintiff's full attorneys' fees in the litigation, and provided an offer of judgment under Rule 68.  The plaintiff declined, and ultimately the court did not award attorney fees, but issued the spoliation order anyway.  On appeal, the Federal Circuit held that when a party essentially "throws in the towel," there is nothing left for the court to decide and therefore no jurisdiction exists.  In this case, the Federal Circuit determined that as soon as attorneys' fees were offered by a party, the case became moot and the trial court lacked any further jurisdiction to hear it or determine issues.  As a result, the order regarding spoliation was vacated.

More on Samsung Elecs. Co. v. Rambus, Inc. after the jump.

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Full post as published by FileWrapper on May 01, 2008 (boomark / email).