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You've Made Your Bed, Now Lie In It – Binding Settlement Agreement Defeats A Post-Settlement Judgment
Holding that the parties' executed agreement mooted the issues in the case, the Federal Circuit recently reversed a district court's decision to grant summary judgment of non-infringement despite the parties' agreement. Serta Simmons Bedding, LLC v. Casper Sleep Inc., 950 F.3d 849 (Fed. Cir. 2020). The decision builds upon prior Federal Circuit case law giving effect to settlement agreements. It also highlights strategic issues to consider when engaging in settlement negotiations while dispositive motions are pending.
Background
Serta Simmons Bedding, LLC and Dreamwell, Ltd. (together Serta Simmons) sued Casper Sleep Inc. (Casper) in September 2017 in the Southern District of New York. Serta Simmons Bedding, LLC v. Casper Sleep Inc., Case No. 1-17-cv-07468 (S.D.N.Y.). Serta Simmons alleged infringement of three patents directed to mattresses that include a channel, and methods for creating those channels. The channels allow insertion of various types of reinforcement, allowing the mattresses to have varying areas of firmness.
On May 18, 2018, the parties filed motions for summary judgment. Casper filed three motions for summary judgment of non-infringement based on the court's revised claim construction. On June 18, after opposition briefs were filed (but before reply briefs were due), the parties entered into a settlement agreement and filed a joint motion to stay the litigation.
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