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.


The Law Firm of Kotchen & Low LLP - Civil Litigation, Counseling, and Representation Before Government Agencies

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