The US Court of Appeals for the Federal Circuit ruled that a mediator in a patent infringement dispute has a duty to disclose a relationship with the law firm representing one of the parties.
In the case of CEATS, Inc. v. Continental Airlines, et al., CEATS brought a patent infringement suit against Continental and other airlines and parties for alleged infringement of its patents. After the parties failed to settle the case during court-ordered mediation, the case went to trial.
A jury found that CEATS’s patents were infringed but invalid.
CEATS filed a motion for relief from the judgment based on an undisclosed relationship between the court-appointed mediator and the law firm representing one of the defendants.
Previously, the law firm that one of the parties’ lawyers worked for had arbitrated a case before the same mediator and he had made an award of $22 million to the firm’s client. …
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