Lead Creation Inc. v. The Partnerships and Unincorporated Associations…

Background

Defendants submitted a letter motion under Federal Rule of Civil Procedure 37(b)(2), which permits sanctions for disobeying discovery orders. They asserted that Lead Creation Inc. and its sole shareholder and Chairman, Xiaodong Fan, failed to produce documents and failed to appear for a deposition scheduled for April 10, 2023, or arrange another date, as required by the court’s March 29, 2023 order.

Requested sanctions

Defendants asked the court to treat certain matters as established for purposes of the case, including proposed facts about Lead Creation’s flashlight sales or manufacturing and the conduct of the patent’s patentees and assignors regarding a patent-maintenance payment. They also asked the court to bar Lead Creation from opposing those matters and to impose substantial sanctions on Lead Creation and Fan individually.

Defendants argued that the noncompliance was willful, that Lead Creation and Fan had received sufficient service of the March 29 order, and that they had continued to ignore the court proceedings after Lead Creation’s attorney was permitted to withdraw. The letter also made broader allegations about the purpose of the lawsuit and the request for a temporary restraining order.

Ruling

Judge Furman denied the application without prejudice to renewal by formal motion on or before April 27, 2023. The court’s stated reason was that its rules do not permit motions for sanctions to be made by letter. The April 17, 2023 deadlines remained in effect, and the Clerk was directed to terminate ECF No. 171. The ruling did not decide whether the requested Rule 37 sanctions should ultimately be imposed.