Federal Circuit Requires Stay Until Transfer Ruling (Part 2)

On March 8, 2021, the Federal Circuit issued an order in In re: Tracfone Wireless, Inc. (available here). This order is another Federal Circuit decision directing W.D. Tex.’s Judge Albright to stay a case pending the resolution of a motion to transfer venue. The Federal Circuit held that proceeding with the case (including through a claim-construction hearing) while a motion to transfer was pending constituted an abuse of discretion.

Two additional points to note: (i) the Federal Circuit directed the district court to issue a ruling (that provides a reasoned basis) within 30 days and (ii) indicated that “any familiarity that [the district court] has gained with the underlying litigation due to the progress of the case since the filing of the complaint is irrelevant when considering the transfer motion and should not color its decision.” This decision will likely result in more defendants filing motions to transfer venue, regardless of their likelihood of success, as the motion will likely result in the case schedule being slowed down.

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