Wednesday, October 29, 2008

APPEAL IS MOOT WHERE THERE IS NO EFFECTIVE RELIEF THAT COULD BE GRANTED

Systems Division, Inc., v. Teknek, LLC [2008-1100] (October 29, 2008) [MAYER, SCHALL, and MOORE] NON-PRECEDENTIAL The Federal Circuit dismissed an appeal of a holding of contempt.
DISCUSSION: The district court entered a contempt order, while the order was being appealed, the parties settled and the district court vacated the contempt order. One of the defendant’s bankruptcy trustee appealed the now-vacated Contempt Order, claiming that it adversely affected his interests and asked the Federal Circuit to vacate the order that the district court has itself already vacated. Because there is no effectual relief that the Federal Circuit could grant to the Trustee, it dismissed the appeal as moot. Because the Trustee’s appeal to this court is frivolous, it imposed sanctions under Rule 38 of the Federal Rules of Appellate Procedure and order the Trustee and his attorneys to pay SDI’s attorney fees and costs due to this appeal.