True Return Systems, LLC v. MakerDAO
- Laura Swain
- 1:22-cv-08478
- U.S. District Court · Southern District of New York
- 2
True Return Systems v. MakerDAO: Judge Broderick denied CCI’s request to participate as a friend of the court and ordered MakerDAO to retain counsel.
Crypto Council for Innovation’s request to participate was denied, and MakerDAO was ordered to retain counsel and file a notice of appearance by June 30, 2023.
What happened
In True Return Systems LLC v. MakerDAO, Crypto Council for Innovation asked to participate as a friend of the court, saying it could help explain complex patent issues and requested remedies.
The court denied the request because CCI did not offer a unique perspective unavailable from the parties. The court also found that some CCI members held MakerDAO tokens and could benefit from CCI’s participation, preventing CCI from providing neutral assistance.
Judge Vernon S. Broderick also ordered MakerDAO to retain counsel and file a notice of appearance by June 30, 2023. The clerk was directed to close the motion.
The detailed version
- True Return Systems, LLC v. MakerDAO · No. 1:22-cv-08478
- Laura Swain
- June 21, 2023
Background
Crypto Council for Innovation (CCI) moved for permission to participate as an amicus curiae, meaning a nonparty that offers information or arguments to assist the court. CCI said its participation would help present complex patent-law issues and address the remedies requested in the case.
Reasoning
The court explained that district courts have broad discretion to allow or deny amicus participation. An amicus should help the court by offering insights that the parties cannot provide and should act as an objective, neutral, and dispassionate friend of the court.
The court found that CCI did not have a unique viewpoint unavailable from the parties. Although the case involved complex patent-law issues, the court said the parties’ counsel—not CCI—should explain those issues as they relate to the allegations. The court also found that CCI was not neutral because some of its members held MakerDAO tokens and might benefit from CCI’s participation.
Rulings
The court denied CCI’s motion to appear as an amicus curiae. It separately ordered MakerDAO to retain counsel, who had to file a notice of appearance by June 30, 2023. The clerk was directed to close the open motion at Document 38.
Additional procedural point
The opinion text includes a discussion stating that artificial entities must be represented by counsel, citing federal authorities. The order itself does not state why MakerDAO had not yet retained counsel beyond directing it to do so.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.