Thursday, May 13, 2010

Floorgraphics Motion to Reopen Case Is Denied

The Court denied Floorgraphics' request to reopen their case against News America Marketing under Fed. R. Civ. P. 60(b).

After learning about the strong evidence provided by News America to Valassis in discovery in the Valassis case – which led to a $500 million settlement, Floorgraphics sought to undo its $29.5 million settlement and reopen its case.

Federal Rule of Civil Procedure 60(b) provides that a court may reopen a final judgment if there is:

(2) newly discovered evidence that, with reasonable diligence, could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether previously called intrinsic or extrinsic), misrepresentation, or misconduct by an opposing party; … or (6) any other reason that justifies relief.
Courts have held that relief under Rule 60(b) should only be granted where extraordinary justifying circumstances are present, in part because of the judicial system's interest in the finality of judgments. Given the standard, Floorgraphics' motion was an uphill battle from the start. While it appears that the discovery received by Floorgraphics was incomplete, it apparently was not an extraordinary enough shortfall to warrant undoing the judgment in the case.

The Court heard argument on Floorgraphics' motion yesterday, and rejected it.

Insignia's lawsuit against News America is still pending, and is scheduled for trial in December.

Related documents: FGI's Motion; News' Response; FGI's Reply; News' Letter; Proposed Order

Related article: SF Chronicle.

Monday, May 10, 2010

Insignia v News Set for December 2010 Trial

Trial in the Insignia v. News America Marketing lawsuit has been scheduled for December 6, 2010.

A settlement conference was held on April 12, 2010, but no settlement was reached. The Court held a status conference on May 4, 2010, and Insignia had hoped for a trial date within a couple months of that date. But trial is expected to last one to two months, which complicates scheduling, and contributed to the December 2010 trial date.

Meanwhile, in Floorgraphics v. News America Marketing, a hearing has been set for May 12, 2010 on Floorgraphics' motion under Rule 60(b) to vacate the settlement between the parties in light of the fact that News America failed to produce videos and other evidence to Floorgraphics that was produced to Valassis in its successful trial against News America.


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