Conditioning Supplementation of Infringement Contentions on Payment of Sanctions is an Improper Sanction Absent a Showing of Bad Faith

AntiCancer, Inc. v. Pfizer et al., __ F.3d __ (Fed. Cir. October 20, 2014) (NEWMAN, Reyna, Taranto) (S.D. CA: Sammartino) (2 of 5 stars)

Federal Circuit vacates district court's decision granting summary judgment of noninfringement because the grant was based on an improper sanction imposed on plaintiff.

Federal Circuit vacates district court's decision granting summary judgment of noninfringement because the district court improperly imposed a fee-shifting sanction as a condition for permitting the plaintiff to supplement its Preliminary Infringement Contentions and thereby challenges summary judgment. Under Ninth Circuit precedent, a court has authority to issue sanctions only upon an explicit finding of bad faith." Slip op. at 9. Although the Federal Circuit did not address the sufficiency of the plaintiff's Preliminary Infringement Contentions, it noted that the district court failed to make an explicit finding of bad faith. Therefore, the court vacated the sanctions and the summary judgment, and remanded the case.