Mitochon Practice Management Systems v. Healthcare Technology Alliance
2:13-cv-00177
D. UtahJul 21, 2014Background
- 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- Defendants' responses to Healthcare Technology’s discovery requests were untimely; several admissions were later withdrawn or contested.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))
