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Business and Intellectual Property Lawsuits


3dfx Patent Lawsuit

Samsung Electronics v. 3dfx Interactive, Inc.
U.S. District Court for the Northern District of California

Luther Orton represented 3dfx in defense of a patent infringement case seeking millions of dollars of damages for 3dfx’s purported infringement of Samsung patents related to computer chips for graphics acceleration. Working closely with former 3dfx scientists and engineers, Luther developed detailed proof amounting to a prior invention defense, initiated settlement discussions during which he presented the proof to Samsung’s lawyers and executives, secured an early settlement conference mediated by the United States Magistrate, and negotiated a “walk away” settlement pursuant to which 3dfx received a complete release of all claims.

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California Court Reporter Unfair Competition Lawsuit

Saunders v. Superior Court
San Francisco Superior Court

Jim Miller represented a group of deposition reporters in litigation against a court reporter association and two insurance companies. The plantiffs complained of a practice of direct contracting between the association and the insurance companies. The defendants claimed there were insufficient grounds for legal action. The case went to the appellate court, at which Jim argued successfully that plaintiff’s suit was viable. Saunders v. Superior Court, 27 Cal.App.4th 832 (1994).

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City of Oakland/Ed DeSilva Lawsuit (Oakland Raiders)

Oakland Raiders Litigation
Sacramento County Superior Court

Jim Miller represented Edwin O. DeSilva in litigation brought against DeSilva, the City of Oakland, the County of Alameda, and others, in connection with the relocation of the Raiders Football Team from Los Angeles to Oakland in 1995. The Raiders sought damages in excess of $1 billion. After years of active litigation, Jim negotiated an agreement whereby the public entity defendants agreed to defend and indemnify DeSilva. The case was tried, under the indemnity agreement, to a verdict and judgment in favor of DeSilva.

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EP Technologies Wrongful Termination Verdict

Kelly Edwards v. EP Technologies
Santa Clara County Superior Court

Luther Orton represented EP Technologies (“EPT”) in defense of a lawsuit filed by Kelly Edwards alleging that EPT had wrongfully and constructively terminated her upon her return from pregnancy leave. Ms. Edwards’ husband had once been a senior executive at EPT and was himself embroiled in a series of disputes and lawsuits with EPT (which Luther also handled for the company). Luther prevailed in the trial of the case to the jury, resulting in the entry of a judgment for EPT.

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George Benny Bank Fraud Prosecution

Wells Fargo Bank, N.A. v. George I. Benny, et al
San Francisco Superior Court

Luther Orton represented Wells Fargo Bank in pursuit of $12.5 million Benny fraudulently obtained as a loan from the bank pursuant to a concealed “double escrow” closing of a real estate transaction. Luther succeeded in locating the proceeds of the loan, securing it, and arranging for the return of the entire $12.5 million to the Bank, plus the Bank’s attorneys fees. When the United States Attorney for the Northern District of California later prosecuted Mr. Benny, he relied heavily on the evidentiary record Luther had developed in this case.

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Homestore, Inc. Securities Cases

Pyfrom v. Homestore, Inc.
Brody v. Homestore, Inc.
U.S.D.C. Central District of California

Jim Miller and Luther Orton defended Homestore, Inc., and Homestore.com, Inc., in these two securities lawsuits. First, Jim and Luther defeated Brody's attempt to force the trial court to remand Brody to state court by arguing successfully in the Ninth Circuit Court of Appeals, with the result that Brody's petition was denied. Subsequently, Jim and Luther moved successfully to dismiss the Pyfrom case, and for summary judgment in Brody. They obtained dismissals with prejudice of both cases, producing final judgments in Homestore's favor.

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Hibernia Bank/Cal-Neva Lodge Bank Fraud Lawsuits

The Hibernia Bank v. Cobalt Capital Corporation, et al
San Francisco Superior Court
In Re: Cobalt Capital Corporation

U.S. Bankrupcty Court for the District of Nevada

On behalf of Hibernia Bank, Luther Orton sued Cobalt Capital Corporation and its president John Perroton for $20 million, an injunction, and the appointment of a receiver, in connection with a loan Perroton fraudulently obtained from Hibernia to purchase the Cal-Neva Lodge. The Bank also sought the appointment of a Chapter 11 Trustee. As a result of the lawsuit and an evidentiary hearing, the Bankruptcy Court appointed a Chapter 11 Trustee and imposed a constructive trust benefiting Hibernia on the Cal-Neva Lodge, and on a $2,000,000 Cobalt Capital bank account. Perroton was later prosecuted by the United States Attorney for the Northern District of California, who relied on the evidentiary record Luther had developed.

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LG Electronics Attorney Disqualification Case
San Francisco County Superior Court

Jim Miller and Luther Orton represented LG Electronics, Inc., in this lawsuit about an International Chamber of Commerce arbitration. The suit filed by LG Electronics was to prohibit a law firm from representing LG's adversary in the ICC arbitration, which addressed important licensing issues. On a time-critical basis, Jim, Luther, and co-counsel from Atlanta's Alston & Bird law firm sought and obtained a temporary restraining order and protective order, conducted expedited discovery, and briefed and argued in support of a preliminary injunction. The Court granted the application and issued the preliminary injunction, which became final when the law firm elected not to appeal.

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Matrix Pharmaceutical Trade Secret Settlement

Collagen Corporation v. Matrix Pharmaceutical, Inc., et al
Santa Clara County Superior Court

Luther Orton represented Matrix Pharmaceutical in this lawsuit brought against Matrix and ten of its employees by Collagen Corporation. Collagen accused the defendants of the misappropriation of traded secrets pertaining to the manufacture and processing of collagen for use in medical applications. On the eve of trial, Luther and his team filed and argued a sanctions motion related to discovery misconduct by Collagen and its lawyers. As a result, Collagen, the plaintiff, agreed to pay Matrix, the defendant, millions of dollars in settlement and dismissed its lawsuit with prejudice.

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Nevada Mortgage Company Ponzi Scheme Adversary Proceeding

In re Lemons & Associates, Inc.
U.S. Bankruptcy Court for the District of Nevada

Luther Orton represented the trustee in bankruptcy at trial in an adversary proceeding to determine the rights of victims of a
multi-million dollar “Ponzi” scheme. The trial resulted in a decision
by the judge directing the pro-rata allocation of the estate’s assets to all victims of the scheme, as proposed by the trustee, and for which Luther argued at trial.

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Reinforced Earth Company Patent Transfer Judgment

The Reinforced Earth Company v. The Hilfiker Pipe Company and William K. Hilfiker
U.S. District Court for the Northern District of California

The Reinforced Earth Company (“RECO”) sued Luther Orton’s clients Bill Hilfiker and his company for a purported breach of a patent transfer agreement, claiming that Hilfiker wrongfully had refused to transfera patent to RECO. Luther tried the case to the Court, winning a judgment for his clients denying all damages sought by RECO, and including a declaration that Hilfiker was not required to transfer the disputed patent under the patent transfer agreement. When Luther moved for recovery of his clients’ costs and attorney’s fees after trial, RECO paid them by agreement.

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Signetics Technology Transfer Trial

Diax Corporation v. Signetics Corporation
Santa Clara County Superior Court

Luther Orton defended Signetics in this lawsuit in which the plaintiff sought $8,000,000 from Signetics for failing to pay royalties allegedly owed pursuant to a technology transfer agreement. Luther successfully overturned a contested $400,000 jury verdict on a motion for judgment notwithstanding the verdict, which judgment he successfully defended on appeal in the Sixth District Court of Appeal.

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Silicon Metrics Copyright Case Dismissal

Library Technologies, Inc. v. Silicon Metrics Corporation, Virtual Silicon Technology, Inc., and United Microelectronics Corporation
U.S. District Court for the Northern District of California

Luther Orton represented Silicon Metrics Corporation (“SMC”) in defense of this lawsuit accusing SMC and the other defendants of copyright infringement, Lanham Act violations, and the misappropriation of trade secrets pertaining to computer chip characterization and modeling. Luther successfully moved to dismiss many of the claims asserted in the lawsuit early on and later secured a “walk away” settlement for SMC involving a dismissal with prejudice of all claims against the company.

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Tri Valley Growers Class Action

Pearson v. Tri Valley Growers
San Francisco Superior Court Action

Before Jim Miller’s involvement, the Court certified a class action comprised of Tri Valley Growers co-op farmer members, who
complained that the co-op’s CEO had defrauded them during an equity restructuring. Tri Valley was forced into bankruptcy after the restructuring. Entering the case after years of litigation, Jim obtained
a dramatic limitation on the scope of claims to be tried as class claims. After five mediation sessions over 18 months, Jim negotiated a resolution of the case for his client funded entirely with D&O insurance proceeds.

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Xidex Trade Secret Trial

Kalvar Corporation v. Xidex Corporation, et al
U.S. District Court for the Eastern District of Louisiana

Luther Orton represented Xidex in defense of this trade secret and unfair competition lawsuit in the Eastern District of Louisiana. In addition to $1,000,000 in money damages, Kalvar sought an injunction which would have required the mandatory removal of equipment already installed by Xidex at various customer facilities. Luther tried the case in Louisiana, successfully moving for a dismissal of the case under F.R.C.P. 41(a) at the conclusion of Kalvar’s case. The Court entered judgment in favor of Xidex, dismissing Kalvar’s lawsuit in its entirety and declaring that Kalvar had no protectable trade secrets.

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