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Mitochon Practice Management Systems v. Healthcare Technology Alliance
2:13-cv-00177
D. Utah
Jul 21, 2014
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Background

  • Plaintiff Mitochon sued Defendants over an IT Purchase Agreement to obtain assignment of Defendants' interest in a practice management software and its source code.
  • Defendants withdrew from Healthcare Technology Alliance per its Operating Agreement and allegedly sought to transfer the software rights to Plaintiff.
  • The IT Agreement required Defendants to deliver the software and source code to Plaintiff but they allegedly failed to perform.
  • Healthcare Technology allegedly breached and retroactively amended its Operating Agreement to block the transfer.
  • Defendants' responses to Healthcare Technology’s discovery requests were untimely; several admissions were later withdrawn or contested.
  • Plaintiff filed the complaint on March 12, 2013, and Defendants filed a cross-claim on May 3, 2013.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether admission withdrawal should be allowed under Rule 36(b) N/A N/A Withdrawals granted after balancing merits and prejudice
Merits versus prejudice balance in allowing withdrawal Withdrawals promote merits; admissions would harm Plaintiff Withdrawal would prejudice Plaintiff due to discovery timing Merits promotion outweighed prejudice; withdrawals granted

Key Cases Cited

  • Raiser v. Utah County, 409 F.3d 1243 (10th Cir. 2005) (prejudice standards under Rule 36(b))
  • Bergmann v. United States, 820 F.2d 1117 (10th Cir. 1987) (prejudice considerations in withdrawal of admissions)
  • Hadley v. United States, 45 F.3d 1345 (9th Cir. 1995) (prejudice assessment in Rule 36(b))
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Case Details

Case Name: Mitochon Practice Management Systems v. Healthcare Technology Alliance
Court Name: District Court, D. Utah
Date Published: Jul 21, 2014
Docket Number: 2:13-cv-00177
Court Abbreviation: D. Utah