Grumman Systems Support Corp. v. Data General Corp.
United States District Court for the Northern District of California
125 F.R.D. 160 (N.D. Cal. 1988)
Data General (DG) (defendant) owns a copyright on a program called ADEX. DG sued Grumman Systems Support Corp. (Grumman) (plaintiff) in the United States District Court for the District of Massachusetts (Mass. action) for copyright infringement, claiming that Grumman copied ADEX without permission. Grumman thereafter sued DG in California state court on a California antitrust cause of action. The facts of the California action were based on DG’s behavior in relation to ADEX. DG had the case removed to the United States District Court for the Northern District of California. Thereafter, Grumman amended its complaint to add claims unrelated to the ADEX claims and added two new defendants. In the Mass. action, DG moved for a preliminary injunction. Grumman opposed, arguing that DG’s behavior in relation to ADEX had violated antitrust laws. Thus, some of the issues raised in the California action were also raised in the Mass. action. DG moved to dismiss or stay the California action on the ground that it was a compulsory counterclaim to the Mass. action.
Rule of Law
Holding and Reasoning (Smith, J.)
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