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IBM's Memorandum in Opposition re Status Conference

By Pamela Jones et al.

"IBM believes the Novell ruling effectively rejected all of SCO's claims and effectively granted several of IBM's counterclaims," IBM tells the court in its Memorandum in Opposition to SCO's recently filed motion asking for a status conference to discuss SCO going forward on four of its claims, while keeping IBM's counterclaims stayed by the bankruptcy rules.

There is no good argument for going forward piecemeal like that, IBM argues. The claims and counterclaims are too intertwined to do just those two motions without all of IBM's counterclaims, because they can't easily be untangled, and why do it now? It would be a waste of judicial resources:

2. Now, before the Tenth Circuit has ruled on the appeal, SCO seeks to pursue several of its claims against IBM, while IBM's counterclaims against SCO remain stayed as a result of SCO's 2007 bankruptcy filing. SCO's claims in this case depend on the outcome of SCO's appeal in the Novell Litigation. If affirmed, Judge Stewart's judgment will foreclose them. Moreover, they are closely related to IBM's stayed counterclaims and should not be litigated in the absence of IBM's counterclaims. While IBM shares SCO's interest in the expeditious resolution of this case, it makes no sense to litigate the case piecemeal. Doing so would waste judicial and party resources and potentially result in inconsistent rulings. Proceeding as SCO proposes would require the Court and the parties to undertake considerable work (on highly-complex issues) that might not be required, and risk litigating the same issues multiple times before different fact finders, depending on the Tenth Circuit's ruling.

It speaks volumes that Judge Dale Kimball did not rule on these motions pending SCO's first appeal, IBM points out, and his wisdom in so doing should be informative of the right solution now. If SCO loses the appeal, it can't go forward on any of these claims. But for sure, if any of the claims are tried, they should all go forward together.

Full post as published by Groklaw on August 10, 2010 (boomark / email).