In Re Biosearch Technologies, Inc.

NOTE: This order is nonprecedential United States Court of AppeaIs for the FederaI Circuit IN RE BIOSEARCH TECHNOLOGIES, INC. AND EUROFINS MWG OPERON INC., Petitioners. Misce11aneous Docket No. 995 On Petition for Writ of Mandarnus to the United States Dist;rict Court for the Eastern District of Texas in case no. 09-CV-0283, Judge T. John Ward. ON PETITION Before NEWMAN, L1NN, and REYNA, Circuir Judges. LINN, C'ircu,i.t Judge. ORDER Biosearch Technologies, Inc. and Eurofins MWG Op- eron Inc. seek a writ of mandamus directing the United States Di.strict Court for the Easte-rn District of Texas to transfer the case to the District Court for the Northern District of Ca1ifornia. App1ied Biosysterns, LLC and Life Techno1ogies C0rporation (co11ective1y, Life Tech) oppose Biosearch and Eurofins rep1y. Because the district court lN RE BIOSEARCH 'l`ECH 2 abused its discretion in denying Biosearch’s motion to transfer venue under 28 U.S.C. § 1404(a), this court grants Biosearch’s petition for a writ of mandamus. I. This case arises out of a patent infringement suit against the petitioner-defendant, Biosearch, brought by the respondent-plaintiff Life Tech. Life Tech asserted infringement of five of its patents directed to dual-labeled probe products initially against only Biosearch Technolo- gies, Inc., and then added defendants Eurofins MWG Operon, Inc., Midland Certified Reagent Company, Inc., and Bio-Synthesis, Inc. Midland was dismissed from the suit prior to the underlying motion to transfer in the district court. c Bi.osearch and Eurofins (co1lectively, `Biosearch) moved to transfer to the Northern District of California, where a substantial number of witnesses and documents are located. The motion was denied by a magistrate judge, who focused on defendant Bio-Synthesis connec- tions to the Eastern District of Texas. The magistrate determined that all of Bio-Synthesis’ evidence was located in the Eastern District of Texas. Given that Life has facilities in Austin, Texas, Calif0rnia, Maryland, and New York, and Eurof1n is in Alabama, the magistrate deter- mined the Eastern District of Texas was a proper central location. The magistrate acknowledged that the avail- ability of compulsory process to secure the attendance of non-party witnesses favored transfer because of the large number of likely witnesses in the Northern District of California, but decided that the cost of attendance for willing witnesses weighed against transfer due to the number of Bio-Synthesis witnesses in Texas and the increased travel distances for other witnesses that Cali- 3 IN RE BIOSEARCH TECH fornia would require. Biosearch sought review of the magistrate’s order by the district court, which upheld the decision. II. The remedy of mandamus is available only in ex- traordinary situations to correct a clear abuse of discre- tion or usurpation of judicial power. In re Calmccr, Inc., 854 F.2d 461, 464 (Fed. Cir. 1988). ln reviewing a district court's ruling of a motion to transfer pursuant to § 1404(a), we apply the law of the regional circuit, in this case the Fifth Circuit. See Storage Tech. Corp. v. Cisco Sys., Inc., 329 F.3d 823, 836 (Fed. Cir. 20(}3). A motion to transfer under§ 1404(a) calls up-on the trial court to weigh a number of case-specific factors based on the individualized facts on record. See Stewart Org., Inc. v. Ricoh C0rp., 487 U.S. 22, 29, (1988). Al- though a trial court has great discretion in these mat- ters, mandamus may issue when the trial court's application of those factors creates a patently erroneous result. In re Volkswagen, of Am., Inc., 545 F.3d 304, 310 (5th Cir. 2008) (en banc); see also In. re TS Tech USA Corp., 551 F.3d 1315, 1318-19 (Fed. Cir. 2008). ln assessing whether a defendant has met its burden of demonstrating the need to transfer, the Fifth Circuit applies the "pnblic” and "private" factors for determin- ing forum non conveniens Volkswagen, 545 F.3d at 314 n. 9. As we noted in TS Tech, the private interest factors include "(1) the relative ease of access to sources of proof; (2) the availability of compulsory process to secure the attendance of witnesses; (3) the cost of attendance for willing witnesses; and (4) all other practical problems that make a trial easy, expeditious and inexpensive." 551 IN RE BIOSEARCH TECH 4 F.3d at 1319 (citing Piper Aircraft C0. v. Reyn,0, 454 U.S. 235, 241 n. 6, (1981)). The public interest factors include "(1) the administrative difficulties flowing from court congestion; (2) the local interest in having localized inter- ests decided at home; (3) the familiarity of the forum with the law that will govern the case; and (4) the avoidance of unnecessary problems of conflicts of laws [or in] the application of foreign law." Id. Both plaintiffs in this case are headquartered in Cali- fornia, and one is in the Northern District of California. One of the moving defendants, Biosearch, is also incorpo- rated and headquartered in the Northern District of California. lt cannot be disputed therefore that such venue would have a strong interest in trying this case and be convenient with regard to the location of likely sources of evidence. . The district court recognized that at least 19 potential witnesses, among them the patents inventors and prose- cuting attorneys, reside in or near the transferee venue. If all of these witnesses were required to travel to the Eastern District of Texas, the parties would likely incur significant expenses for airfare, meals, and lodging, as well as losses in productivity from time spent away from work. See V0lkswagen, 545 F.3d at 317. In addition, these witnesses will suffer the "personal costs associated with being away from work, family, and community." Id. These costs would be significantly minimized or avoided by transferring the case to Northern California. Moreover given the large number of witnesses that reside in that venue, the subpoena powers of the Northern District of California may be expected to be invaluable in the event process is required to hale relevant witnesses into court. 5 IN RE BIOSEARCH TECH ln contrast, the district court acknowledged that “nei- ther party has identified any witness subject to compul- sory process in the Marshall Division of the Eastern District of Texas." The court nonetheless held that this case should remain in the plaintiffs chosen venue. ln doing so, the district court predominantly relied on Bio- Synthesis’ presence in the Eastern District for many of the § 1404(a) factors. Bio-Synthesis, however, has entered into an agree- ment with the plaintiff to play only a peripheral role in this litigation by, inter alia, limiting its discovery re- quests and agreeing not to challenge the validity of the patents-in-suit. VVhile in theory the Agreement leaves open the possibility that Bio-Synthesis can expend the costs of litigation to reduce its liability under the "high- low" agreement by challenging the infringement allega- tions, the reality of the situation is that Life has limited its own discovery of Bio-Synthesis, and Bio-Synthesis’s behavior implies that it appears content not to expend the costs necessary to prove its non-infringement case at trial_failing even to participate in the claim construction proceedings that are so critical to the outcome of the infringement determinations Thus, whatever documents of Bio-Synthesis are present in the Eastern District of Texas, we cannot say they are deserving of any significant weight. ln analogous situations, where an invention has no connection with Texas, we have determined that the asserted geographical centrality of Texas did not out- weigh the many aspects of convenience to the defendant. ln In re Genentech, Inc., 566 F.3d 1338 (Fed. Cir. 2009) the plaintiff a company which had no connection to Eastern Texas, brought suit in Texas against Genentech and another company, both of which had principal places IN RE BIOSEARCH TECH 6 of business in California. The bulk of the defendants witnesses resided in California, and a substantial amount of the defendants’ evidence was situated in California. Similar to this case, in Genentech, neither the plaintiff company, the inventors, nor any witness of the plaintiff had any connection with Texas. This court required transfer to the Northern District of California, ruling that “the district court clearly erred in not determining [the convenience] factor to weigh substantially in favor of transfer." Id. at 1345. This court observed that the plaintiffs witnesses "will be required to travel a signifi- cant distance no matter where they testify." Id. at 1344. More recently, in cases such as In re Nin,tendo Co., 589 F.3d 1194 (Fed. Cir. 2009) and 111 re Hoffmamt-La Roche, 587 F.3d 1333 (Fed. Cir. 2009), this court ordered transfer from the plaintiffs chosen Eastern Texas forum, noting "a stark contrast in relevance, convenience, and fairness between the two venues.” 587 F.3d at 1336. This prece- dent is persuasive authority for transfer to the Northern District of California, for the facts of the present case are as compelling as for this precedent. Although transfer is within the discretion of the trial court, “in a case featuring most witnesses and evidence closer to the transferee venue with few or no convenience factors favoring the venue chosen by the plaintiff the trial court should grant a motion to transfer." Nintendo, 589 F.3d at 1198. This is such a case. Despite the limited involvement that defendant Bio-Synthesis will have in this litigation, it is not strong enough to maintain the case in the Eastern District of Texas, given the other factors weighing in favor of transfer. We grant the peti- tion. Accordingly, IT ls OR1)ERED THAT: 7 IN RE BlOSEARCH TECH The petition for writ of mandamus is granted The United States District Court for the Eastern District of Texas is directed to vacate its order denying petitioners’ motion to transfer venue, and to direct transfer to the United States District Court for the Northern District of California. FOR TH1-1 CoURT DEC 2 2 /s/ J an Horbaly _ Date J an Horbaly Clerk cc: Thomas M. Peterson, Esq. Kenneth E. Keller, Esq. ~ Clerk, United States District Court for the Eastern District of Texas ` s24 “-=i.a~.zftftsenr DED 22 2011 JAN HORBAL¥ CI.ERK