Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-3_03-cv-03125/USCOURTS-cand-3_03-cv-03125-22/pdf.json

Nature of Suit Code: 830
Nature of Suit: Patent
Cause of Action: 28:1338 Patent Infringement

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United States District Court

For the Northern District of California

IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF CALIFORNIA

EXCEL INNOVATIONS, INC.,

Plaintiff,

 v.

INDIVOS CORPORATION, et al.,

Defendants ___________________________________

INDIVOS CORPORATION, et al.,

Counterclaimants

 v.

EXCEL INNOVATIONS, INC., et al.,

Counterdefendants

 /

No. C-03-3125 MMC

ORDER STAYING DEFENDANTS’

MOTION FOR SANCTIONS,

PLAINTIFF’S MOTION FOR DE NOVO

DETERMINATION, AND MOTION TO

EXPAND THE RECORD

Before the Court is Magistrate Judge Joseph C. Spero’s Report and

Recommendation of November 21, 2006, in which said Magistrate Judge recommends

granting defendants Indivos Corporation and Solidus Networks, Inc.’s (collectively,

“defendants”) motion for sanctions and dismissing plaintiff Excel Innovations, Inc.’s

(“Excel”) remaining claims as a sanction for discovery misconduct. Excel has filed

objections to such recommendation, a motion for de novo determination, and a motion to

expand the record. The matters have been fully briefed.

Case 3:03-cv-03125-MMC Document 466 Filed 01/31/08 Page 1 of 2
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Although, as discussed in the Court’s order re-opening the case, issued concurrently

herewith, all of Excel’s claims and counter-counterclaims have, as a practical matter, been

resolved, defendants’ initiation of bankruptcy proceedings in the United States Bankruptcy

Court for the Central District of California on December 14, 2007 triggered an automatic

stay of this action with respect to any claims brought against defendants and not heretofore

dismissed. See Defs.’ Notice of Commencement of Bankruptcy Case at 1:2-19; 11 U.S.C.

§ 362(a). Further, to the extent the Ninth Circuit recognizes a limited exception to such a

stay, such exception is not applicable, as any ruling on the issue of sanctions would require

the Court “to consider . . . issues presented by or related to the underlying case.” See

Dean v. Trans World Airlines, Inc., 72 F.3d 754, 756 (9th Cir. 1995) (observing, “thinking

about the issues violates the stay”).

Accordingly, further proceedings on Excel’s claims and counterclaims against

defendants, including defendants’ motion for sanctions, are hereby STAYED pending the

above-referenced bankruptcy proceeding. 

The Clerk shall terminate Docket Nos. 323, 407, and 413 for statistical purposes

only.

IT IS SO ORDERED.

Dated: January 31, 2008 

MAXINE M. CHESNEY

United States District Judge

Case 3:03-cv-03125-MMC Document 466 Filed 01/31/08 Page 2 of 2