Document ID: ./input/supremecourt_opinions/opinions/boundvolumes/529bv.pdf
Page Number: 538.0

529US2

Unit: $U49

[10-24-00 10:29:50] PAGES PGT: OPIN

Cite as: 529 U. S. 460 (2000)

463

Opinion of the Court

holder of OCP, in his individual capacity.
In pursuit of that
objective, Adams moved under Rule 15 of the Federal Rules
of Civil Procedure to amend its pleading to add Nelson as a
party; Adams also asked the court, under Rule 59(e), to
amend the fee award. The District Court granted the mo-
tion in full, simultaneously making Nelson a party and sub-
jecting him to judgment. The Court of Appeals afﬁrmed.
We hold that the District Court erred in amending the
judgment immediately upon permitting amendment of the
pleading. Due process, as reﬂected in Rule 15 as well as
Rule 12, required that Nelson be given an opportunity to
respond and contest his personal liability for the award after
he was made a party and before the entry of judgment
against him.

I

OCP and its successor corporation held two patents re-
lating to the method of manufacturing a foamed padding
used in athletic equipment.
In 1994, OCP sued Adams for
infringement. Adams maintained that the patents had been
anticipated by prior art and were therefore invalid under
35 U. S. C. § 102(b). The District Court ruled in Adams’
favor and dismissed the infringement complaint.

Adams then moved for attorney fees and costs. The Dis-
trict Court granted the motion on the ground that Nelson,
who was at all relevant times president and sole shareholder
of OCP, had deceitfully withheld the prior art from the
United States Patent and Trademark Ofﬁce. This behavior,
the District Court concluded, constituted inequitable conduct
chargeable to OCP. On January 20, 1998, the District Court
awarded Adams costs and fees in the amount of $178,888.51
against OCP.

Adams feared, however, that it would be unable to collect
the award. This was an altogether understandable concern;
it stemmed from a letter OCP’s counsel had sent Adams
warning that OCP would be liquidated if exposed to a judg-
ment for fees more than nominal in amount. Adams there-