MEMORANDUM OPINION
Pеnding before the Court is Sun Micro-systems, Inc.’s (“Sun”) Motion to Dismiss Defendants’ Non-Patent Counterclaims (D.I. 28 in 07-782-JJF) and Motion to Dismiss Counterclaims Pursuant to Rule 12(b)(6). Also before the Court is Sun’s Motion to Strike Pursuant to Rule 12(f) (D.I. 27 in 08-504-JJF). For the reasons discussed, both Motions will be granted in part and denied in part.
I. BACKGROUND
Sun is the assignee of the seven U.S. Patents at issue in this suit. The suit involves U.S. Patent Nos. 6,832,223 (“the '223 patent”), 5,870,719 (“the '719 patent”), 5,963,950 (“the '950 patent”), 5,761,662 (“the '662 patent”), 5,727,203 (“the '203 patent”), 6,076,092 (“the '092 patent”), and 6,912,520 (“the '520 patent”). The patents cover various methods, systems, processes, or apparatuses for managing different types of website user-generated data. Sun alleges that Versata has made, used, offered for sale, and/or sold a system that infringes one or more claims of the '223 patent, the '719 patent, the '950 patent, and the '662 patent, in violation of 35 U.S.C. § 271(b) and (c). (D.I. 1 in 07-782-JJF ¶¶ 5-24.) Sun also alleges, upon information and belief, that Versata has made, used, offered for sale, and/or sold the Logic Suite and Business Rules Management Systеm and related components, which Sun alleges infringes the '203 patent, the '092 patent, and the '520 patent. (D.I. 1 in 08-504-JJF ¶¶ 5-22.)
On November 30, 2007, Sun filed a first action against Versata Enterprises, Inc., Versata Software, Inc., Versata Development Group, Inc., Versata Computer Industry Solutions, Inc., Versata, Inc., Trilogy, Inc., and Nextance, Inc. (collectively, “Versata”), alleging infringement of the '223 patent, the '719 patent, the '950 patent, and the '662 patent. (D.I. 1 in 07-782-JJF.) Versata filed its Answer to this action on January 25, 2008. (D.I. 22 in 07-782-JJF.) In its Answer, Versata denies that it is infringing any of the patents,
Sun filed a second action against Versata on August 11, 2008, alleging infringement of the three other Sun patents at issue: the '203 patent, the '092 patent, and the '520 patent. (D.I. 1 in 08-504-JJF.) Versata filed its Answer and Amended Counterclaims in this action on October 24, 2008. (D.I. 24 in 08-504-JJF.) In its Answer and Amended Counterclaims, Versata denies that it is infringing any of the patents, asserts a variety of defenses, and seeks declarations of noninfringement and/or invalidity and/or unenforceability. (D.I. 24 in 08-504-JJF at 2-9.) On November 7, 2008, Sun filed a Motion to Dismiss Counterclaims Pursuant to Rule 12(b)(6) and Motion to Strike Pursuant to Rule 12(f). (D.I. 27 in 08-504-JJF.) In that Motion, Sun requested that the Court dismiss all three of Versata’s counterclaims and that the Court strike Versata’s Fourth through Twelfth Defenses. 1 (Id)
On September 16, 2008, Versata filed a Motion to Consolidate the two actions. (D.I. 11 in 08-504-JJF.) The Court granted Versata’s Motion to Consolidate Cases on December 1, 2008, combining the two actions under Civ. No. 07-782-JJF. (D.I. 34 in 08-504-JJF.)
II. THE PARTIES’ CONTENTIONS
Although the Court consolidated Civil Action Nos. 07-782-JJF and 08-504-JJF into Civil Action No. 07-782-JJF, it did not do so until the briefing on Sun’s motion to dismiss in each action was nearly complete. Accordingly, below, the Court will refer separately to Sun’s Motion To Dismiss in the first action (07-782-JJF) and Sun’s Motion To Dismiss in the second action (08-504-JJF).
A. Sun’s Motion To Dismiss In The First Action (07-782-JJF)
Sun contends in its Opening Brief in Support of Its Motion to Dismiss Defendants’ Non-Patent Counterclaims in the first action that Versata has failed to state claims for relief in Counts Five, Six, Eight, Nine, and Ten of its Answer to Complaint and Counterclaims. (D.I. 30 in 07-782-JJF.)
Sun argues that the Court should dismiss Counts Five and Six, which deal with violations of the Sherman Act, 15 U.S.C. § 2, because Versata has not pleaded facts sufficient to establish the essential elements of a prima facie antitrust claim. (D.I. 30 in 07-782-JJF at 6.) Specifically, Sun argues that Versata has not pleaded facts sufficient to show that Sun had a “dominant, or even significant, share of the market for ‘web-enabled software platforms,’ ” has not adequаtely defined the proposed relevant market, and has not addressed other essential elements of an antitrust claim. (Id at 10-12).
Versata responds in its Answering Brief (D.I. 39 in 07-782-JJF) that all five non-patent counterclаims Sun seeks to dismiss comply with the pleading requirements of Federal Rule of Civil Procedure 8(a), which requires only a “short and plain statement of the claim showing that the pleader is entitled to relief.”
(See
D.I. 39 in 07-782-JJF at 5 (citing Fed.R.Civ.P. 8(a)(2)).) Versata argues that even after
Bell Atl. Corp. v. Twombly,
As for its misrepresentation counterclaims (Counts Nine and Ten), Versata contends that it has pleaded both an affirmative misrepresentation and concealment on Sun’s part. (Id. at 14-16.) Specifically, Versata argues that “Sun promised not to sue developers such as Versata for developing, testing, and using Java-based applications,” that Versata justifiably relied on that promise and developed such an application, and that Sun then sued Versata for infringement, reneging on its promise. (Id. at 14.) Versata also argues that Sun failed to disclose “the fact that [it] was planning to seek patent protection for a Java-based configurator application,” a fact thаt materially qualified its invitation to Versata and other users to download Java and begin creating Java-based applications. (Id. at 15.) Finally, Versata argues that it should be given an opportunity to amend its counterclaims, should the Court dismiss them, and that the Court should not stay its counterclaims or bifurcate the action, should the Court deny Sun’s motion to dismiss them. (Id. at 17-19.)
B. Sun’s Motion To Dismiss In The Second Action (08-504-JJF)
With respect to the Motion to Dismiss Counterclaims Pursuant to Rule 12(b)(6) and Motion to Strike Pursuant to Rule 12(f), (D.I. 27 in 08-504-JJF), which Sun filed in the second action, Sun contends that Versata has failed to state claims for relief with respect to its three counter
Sun next contends that Versata’s equitable estoppel, waiver, license, unclean hands, implied license, and patent exhaustion defenses should be stricken because Versata has failed to plead facts sufficient to support the three counterclaims on these bases. (Id. at 9; see also id. at 4-8 (discussing Versata’s defenses as they form a partial basis for its counterclaims).) Similarly, Sun argues that Versata’s laches defense should be stricken because Versata has not alleged any of the required еlements of laches. (Id. at 9.) Sun next contends that Versata’s failure to mark defense is not a recognized defense and should be stricken. 2 (Id.) Finally, Sun requests that the Court strike Versata’s “limitation on damages and costs” defense because it is an inadequately explained and “illegible pleading.” (Id. at 5-6,10.)
Versata responds in its Answering Brief (D.I. 35 in 08-504-JJF) that the Federal Rules of Civil Procedure require mere notice pleading, that the Supreme Court’s decision in Twombly did not change this fundamental truth, and that it has pleaded its three counterclaims in accordance with these standards. (Id. at 4-7.) Generally, Versata accuses Sun of “attempt[ing] to impose a pleading standard that the Federal Rules do not require.” (Id. at 7.) Versata further contends that all nine of the defenses Sun wishes stricken are properly pleaded. (Id. at 7-9.) It points out that motions to strike are generally disfavored and argues that it is not required to “plead facts on an element-by-element basis fоr each defense.” (Id. at 8.) Versata contends that its failure to mark and limitations on damages and costs defenses should not be stricken because they are proper defenses to Sun’s damages claims and are included to put Sun on notice and preserve Versata’s rights. (Id.) Next, Versata argues that Sun has not alleged, as it must, that the defenses in question will hinder or prejudice Sun as the litigation proceeds, or that the defenses “will harm Sun, create unnecessary burdens, or cause delay.” (Id. at 9.) Finally, Versata requests leave to amend, should Sun’s motion be granted in whole or in part. (Id.)
III. LEGAL STANDARD
In considering a motion to dismiss filed under Federal Rule of Civil Procedure 12(b)(6), the Court must accept all factual allegations in a complaint as true and consider them in the light most favorable to plaintiff.
Erickson v. Pardus,
With respect to motions to strike, Federal Rule of Civil Procedure 12(f) states, in relevant part, that “[a] court may order stricken from any pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” Fed.R.Civ.P. 12(f). Motions to strike serve “to clean up the pleadings, streamline litigation, and avoid unnecessary forays into immaterial matters.”
McInerney v. Moyer Lumber & Hardware, Inc.,
IV. DISCUSSION
A. Sun’s Motion To Dismiss Versata’s Non-Patent Counterclaims (D.I. 28 in 07-782-JJF)
1. Counts Five And Six: Attempted Monopolization
A patentee may be subject to antitrust liability “for the anti-competitive effects of [an infringement] suit if the alleged infringer (the antitrust plaintiff) proves (1) that the asserted patent was obtained through knowing and willful fraud within the meaning of
Walker Process
..., or (2) that the infringement suit was a mere sham to cover what is actually nothing more than an attempt to interfere directly with the business relationships of
Leaving aside the question of whether Versata has adequately pleaded facts establishing primа facie sham litigation and
Walker Process
fraud claims (Counts Five and Six, respectively),
3
the Court concludes that it must dismiss Counts Five and Six because Versata has not adequately pleaded attempted monopolization. Specifically, the Court concludes that Versata has not adequately alleged the boundaries of the relevant market or that Sun possessed sufficient power within that market to come dangerously close to monopolization. Indeed, Versata offers no allegations regarding “the reasonable interchangeability of use or the cross-elasticity of demand between the product itself and substitutes for it.”
Queen City Pizza,
The question now is whеther to grant Versata leave to amend both Counts. Because the parties do not contest that Versata has pleaded the elements of sham litigation and
Walker Process
claims, the only apparent defect in Counts Five and Six that has been presented to the Court is Versata’s inadequate pleading of the underlying attempted monopolization required to sustain Counts Five and Six. Other district courts within this Circuit have granted leave to amend in similar circumstances. For instance, in
Teva Pharm. Indus, v. Apotex, Inc.,
No. 07-5514(GEB)(JJH),
2. Counts Nine And Ten: Misrepresentation
Under California law,
4
“the elements of fraud [or intentional misrepresentation] are (a) misrepresentation (false representation, concealment, or nondisclosure); (b) knowledge of falsity (or ‘scienter’); (c) intent to defraud, i.e., to induce reliance; (d) justifiable reliance; and (e) resulting damage.”
OCM Principal Op
Because Counts Nine and Ten sound in fraud, they are subject to the heightened pleading requirements of Rule 9(b).
See In re Student Finance Corp.,
No. 03-507-JJF,
i. Count Nine: Intentional Misrepresentation & Concealment
Briefly, and as set forth above, the basis for Sun’s intentional misrepresentation and concealment claims is that Sun invited developers to develop Java-based programs, granted them licenses to do so, provided users with licenses to run such Java-based programs, and concealed the existence of patents and patent applications which materially qualified these representations and actions. (D.I. 22 in 07-782-JJF at 50-51.) On reviewing Versata’s pleading, the Court concludes that Versata has alleged all the elements of intentional misrepresentation and concealment. 5
The question is whether Versata has alleged these elements with the level of particularity required under Rule 9(b). Versata alleges that in 1996 and 1997, “Sun granted to the general public [certain] fully-paid, nonexclusive, nontransferable, perpetual, worldwide limited license[s] to all Sun intellectual property that was required” to develop, compile, and use Java-based programs.
{Id.
at 48-49.) Further, Versata alleges that Sun provides developers, including Versata, “a
In support of these allegations, Versata attaches no fewer than nine exhibits, all either Web pages, or book excerpts, to its Answer and Counterclaims. (Id., Exs. AB, P-V.) Exhibits P, S, T, U, and V all contain the language of several Sun license agreements pertaining to various aspects of Java. Exhibits A, B, Q, and R are offered as evidence of Sun’s inducement of developers to download and use Java for free to create applications. Count Nine provides dates (and URLs, where relevant) associated with these publications. Given the nature of the alleged misrepresenting publications, in particular the Web pages, it is not feasible for Versata to plead specific places or times at which the misrepresentations occurred.
Although Versata alleges upon information and belief that Sun’s patent infringement claims are made in bad faith and that by filing the present action Sun has engaged in fraud, these allegations still satisfy Rule 9(b) because the related allegations supporting them are
not
made upon information and belief and contain sufficient factual support for the allegations of bad faith and fraud.
See River Rd. Dev. Corp. v. The Carlson Corp.
—Ne., No. 89-7037,
Further, in accordance with
Cordance,
the Court must “apply Rule 9(b) with some flexibility so that a party is not required to plead issues which may have been concealed by an adverse party,”
Cordance Corp.,
ii. Count Ten: Negligent Misrepresentation
Versata has also alleged all the elements of negligent misrepresentation. 7 Based on Versata’s allegations in Count Ten, the incorporated allegations from Count Nine, and the preceding applicable analysis regarding Count Nine, supra Part IV.A.2.i., the Court denies Sun’s motion to dismiss Count Ten of Versata’s counterclaims in Civil Action No. 07-782-JJF.
3. Count Eight: Unfair Competition
California Business & Professions Code § 17200 defines unfair competition as,
inter alia,
“any unlawful, unfair or fraudulent business act or practice.” Cal. Bus. & Prof.Code § 17200. The scope of the California unfair competition statute is “sweeping, embracing anything that can properly be called a business practice and that at the same time is forbidden by law.”
Cel-Tech Commc’ns, Inc. v. L.A. Cellular Tel. Co.,
Because § 17200 is construed broadly and “borrows violations from other laws,” and because the Court finds Versata has adequately pleaded Counts Nine and Ten, which allege that Sun engaged in business practices that at the very least are “unfair,” the Court will deny Sun’s Motion to Dismiss with respect to Count Eight as well.
Cel-Tech Commns., Inc.,
B. Sun’s Motion To Dismiss Counterclaims Pursuant To Rule 12(b)(6) And Motion To Strike Pursuant To Rule 12(f) (D.I. 27 in 08-504-JJF)
1. Versata’s Defenses
The Court first considers whether to grant Sun’s motion to strike most of Versata’s defenses.
8
,
9
In general, “even
i. Equitable Estoppel, Laches, And Waiver
In its Fourth, Fifth, and Sixth Defenses, Versata alleges equitable estoppel, laches, and waiver against Sun. (D.I. 24 in 08-504-JJF at 4.) Taking them in order, with respect to equitable estoppel, Versata must allege facts tending to show that: (1) Sun’s misleading words, conduct, or silence led Versata to reasonably infer that Sun did not intend to enforce the patents at issue against Versata; (2) Versata relied on that conduct; and (3) due to its reliance, Versata will be materially prejudiced if Sun is allowed to proceed with its claim.
Tenneco Auto. Operating Co. v. Visteon Corp.,
Versata’s Fifth and Sixth Defenses are more deficient. Versata simply alleges that “Sun’s claims are barred or limited by the doctrine of laches” and that “Sun has waived all rights, if any, to enforce each of the '203 patent, the '092 patent, and the '520 patent [sic] against Versata’s products.” (D.I. 24 in 08-504-JJF at 4.) A laches defense has two elements: “(1) the plaintiff delayed in filing suit for an unreasonable and inexcusable length of time after the plaintiff knew or reasonably should have known of its claim against the defendant; and (2) the defendant suffered material prejudice or injury as a result of the plaintiffs delay.”
Tenneco Auto. Operating Co.,
ii. License
Versata’s Seventh Defense, license, alleges “[u]pon information and belief [that] Sun freely licenses its ‘Java Database Connectivity (JDBC) API’ software/source code to the industry, including Versata.” (D.I. 24 in 08-504-JJF at 4.) Versata attaches two Exhibits showing Web pages where Sun appears to describe and license its JDBC API technology. Versata also points specifically to claim 2 of the '520 patent and alleges that “[t]o the extent that Sun’s infringement claims under the '520 patent are based in whole or in part on Versata’s use of Java then Versata has a license, as do Versata’s customers.”
(Id.)
Versata has pointed to a specific license, as well as a specific Sun technology and a specific claim of a Sun patent allegedly covered by that license. Given this level of detail, the Court is unable to conclude that retaining Versata’s license defense would prejudice Sun or that the insufficiency of the defense is “clearly apparent.”
Cipollone,
iii. Unclean Hands
The doctrine of unclean hands applies when “(1) a party seeking affirmative relief (2) is guilty of conduct involving fraud, deceit, unconscionability, or bad faith (3) directly related to the matter in issue (4) that injures the other party (5) and affects the balance of equities between the litigants.”
Castle v. Cohen,
Versata’s only allegation regarding its unclean hands defense is that “Sun’s claims with respect to the '520 patent are barred by the doctrine of unclean hands, based upon Sun’s conduct as detailed in [Versata’s license defense] above.” (D.I. 24 in 08-504-JJF at 5.) Nevertheless, the Court cannot conclude that the allegations Versata makes in its license defense suggest mere “misconduct in the abstract, unrelated to the claim which it is asserted as a defense.”
De Long Corp.,
Under the patent exhaustion or “first sale” doctrine, “a patent holder’s rights in a patented article extend only to the first sale of the article. After the first sale, the holder’s rights are exhausted.”
Monsanto Co. v. Good,
No. 01-5678(FLW),
v.Implied License
In general, an implied license “signifies a patentee’s waiver of the statutory right to exclude others from making, using, selling, offering to sell, or importing the patented invention.”
Wang Lab. v. Mitsubishi Elees. Am.,
An implied license by aсquiescence arises where a “plaintiff was bound to know that the royalties it received were for devices corresponding to the patent in suit, [thus justifying] defendant ... in concluding that plaintiff consented to the manufacture of the accused devices within the scope of the asserted patent.”
AMP, Inc. v. United States,
Finally, an essential element of an implied license by conduct or one by legal estoppel is that the plaintiff receive consideration from the defendant in exchange for the granting of the right.
Tenneco Auto. Operating Co.,
vi. Failure To Mark And Limitations On Damages And Costs
Finally, Sun challenges Versata’s Eleventh (Failure to Mark) and Twelfth (Limitations on Damages and Costs) Defenses. Versata’s Eleventh Defenses alleges that “Sun is precluded from recovering, in whole or in part, the damages sought in Sun’s complaint [because Sun] fail[ed] to mark and/or to require Sun’s licensees to mark products that practice the '203 patent, the '092 patent, and the '520 patent,
2. Versata’s Counterclaims
Sun contends in its Opening Brief in Support of Its Motion to Dismiss (D.I. 29 in 08-504-JJF) that “Versata bases its entire allegation that Sun’s '203 and '092 patents arе invalid or unenforceable on two conclusory sentences that simply claim that Sun’s patents are invalid and that Sun’s claims for infringement are ‘barred by, inter alia, equitable estoppel, waiver, and unclean hands.’ These allegations provide no facts upon which Sun can make out Versata’s claims.” (Id. at 8.) With respect to Versata’s counterclaim involving the '520 patent, Sun similarly argues that Versata has not adequately pleaded any of its bases for unenforeeability. (Id. at 4-8.)
Sun does not dispute that the portions of Versata’s counterclaims alleging the invalidity of the '203, '092, or '520 patents for. failure to comply with 35 U.S.C. §§ 101, 102, 103, and/or 112 are adequately pleaded. Therefore, the Court considers Sun’s Motion to Dismiss Counterclaims only with respect to those portions of the Counterclaims that rely upon “inter alia, equitable estoppel, waiver, and unclean hands.” (D.I. 24 in 08-504-JJF at 7-9.) Based on the parties’ briefs, and for the sake of this decision, the Court will assume these рaragraphs incorporate the same nine theories Versata asserts in its Fourth through Twelfth Defenses (i.e., the Defenses Sun sought to strike). This being so, the Court concludes that Versata’s Counterclaims must be dismissed, but only insofar as they rely upon the same theories as the stricken defenses: equitable estoppel, laches, waiver, and implied license. Otherwise, Versata’s Counterclaims are adequately pleaded, and they withstand Sun’s Motion to Dismiss.
V. CONCLUSION
For the foregoing reasons, the Court will grant in part and deny in part Sun’s Motion to Dismiss Defendants’ Non-Patent Counterclaims (D.I. 28 in 07-782-JJF), and will grant in part and deny in part Sun’s Motion to Dismiss Counterclaims Pursuant to Rule 12(b)(6) and Motion to Strike Pursuant to Rule 12(f) (D.I. 27 in 08-504-JJF).
An appropriate Order will be entered.
ORDER
At Wilmington, this 1st day of July 2009, for the reasons set forth in the Memorandum Opinion issued this date;
IT IS HEREBY ORDERED that:
1. Plaintiffs Motion To Dismiss Defendants’ Non-Patent Counterclaims (D.I. 28 in 07-782-JJF) is GRANTED as to Counts Five and Six and DENIED as to Counts Eight, Nine, and Ten.
2. Plaintiffs Motion To Dismiss Counterclaims Pursuant to Rule 12(b)(6) and Motion to Strike Pursuant to Rule 12(f) (D.I. 27 in 08-504-JJF) is GRANTED-IN-PART.
a. Plaintiffs Motion To Strike is GRANTED with respect to Defendants’ Fourth, Fifth, Sixth, and Ninth Defenses.
b. Plaintiffs Motion To Strike is GRANTED with respect to Defendants’ Twelfth Defense, but only to the extent this defense relies upon the theories of equitable estoppel, laches, waiver, and implied license. Plaintiffs Motion To Strike is otherwise DENIED.
c. Plaintiffs Motion To Dismiss Counterclaims is GRANTED, but only to the extent it seeks dismissal of the claims of unenforceability based on the theories of equitable estoppel, laches, waiver, and implied license. Plaintiffs Motion To Dismiss Counterclaims is otherwise DENIED.
3. Within twenty (20) days of the date of this Order, Plaintiff shall file an Amended Complaint and Counterclaims that adequately pleads sham litigation and Walker Process fraud claims, and that adequately pleads defenses and counterclaims based on the theories of equitable estoppel, laches, waiver, and implied license.
Notes
. In order, those defenses are: equitable estoppel, laches, waiver, license, unclean hands, implied license, patent exhaustion, failure to mark, and limitation on damages and costs.
. Sun erroneously refers to this as Versata's "false marking” (D.I. 29 in 08-504-JJF аt 9) defense, but Versata clearly states its defense as "failure to mark,” (D.I. 24 in 08-504-JJF at 5), and properly refers to 35 U.S.C. § 287, which, inter alia, limits damages for patent infringement where the patentee has not marked the patented article made, offered for sale, or sold within the United States, as a patented article. See 35 U.S.C. § 287(a).
. Sun does not appear to dispute that Versata has adequately pleaded the elements of sham litigation and Walker Process fraud claims, as it focuses its attention in its briefing on arguing only that Versata has not adequately pleaded the required elements of attempted monopolization. (See D.I. 30 in 07-782-JJF at 6-12; D.I. 44 in 07-782-JJF at 2-5.)
. The parties agree that California law applies to Counts Nine and Ten of Versata’s counterclaims. (See D.I. 30 in 07-782 at 12-14; D.I. 39 in 07-782 at 14-16.) Therefore, the Court will apply California law for the sake of deciding this aspect of the instant Motion.
. First, Versata alleges upon information and belief that "by filing this lawsuit, Sun has engaged in fraud." (D.I. 22 in 07-782-JJF at 48.) Versata goes on to allege that "Sun has misrepresented material facts by false representations, concealment, or nondisclosure.” (Id.) Second, Versata alleges that "Sun knew that Versata would reasonably rely on Sun's misrepresentations, concealment, and/or nondisclosure.” (Id . at 50.) Third, Versata alleges that "Sun intended to induce Versata to develop Java-based applications.” (Id.) Fourth, Versata alleges that it "justifiable [sic] relied on Sun’s misrepresentations, concealment, and/or nondisclosure by developing Java-based applications,” and that "if Versata had been aware of Sun's relevant patents and patent applications, Versata would not have developed Java-based applications.” {Id. at 51.) Fifth, Versata alleges injury. {Id.) Finally, in order to establish fraud by concealment, Versata alleges that under all these circumstances, Sun "had a duty to disclose its relevant patents and patent applicatiоns to the Java development community including Versata.” {Id. at 51.)
. The Third Circuit has made clear that this provision of Rule 9(b) applies to corporations as well as natural persons.
See Broadcom Corp. v. Qualcomm, Inc.,
. First, Versata alleges upon information and belief that "by filing this lawsuit, Sun has engaged in negligent misrepresentation. Sun made false representations as to past or existing material fact to Versata ... without reasonable grounds to believe in the truth of its representations." (D.I. 22 in 07-782 at 51.) Second, Versata has alleged justifiable reliance on Sun’s misrepresentations and resulting damages. (Id. at 52.) Third, although it was not required to allege knowledge of falsity or intent to induce reliance on this count, Versata has alleged that Sun "knew that Versata would reasonably rely on Sun’s misrepresentations, and Suns [sic] engaged in such misrepresentations with the intent to induce Versata to rely thereon.” (Id.) Finally, Versata supplements its negligent misrepresentation allegations by incorрorating by reference the allegations of Count Nine and the other counts of its counterclaims. (Id. at 48.)
. The parties dispute whether the pleading standard announced by the Supreme Court in
Twombly
with respect to Rule 8(a) also ap
. District of Delaware Local Rule 7.1.3 provides,
inter alia,
“(2) Reply briefs. — The party filing the opening brief shall not reserve
material
for the reply brief which should have been included in a full and fair opening brief....” D. Del. R. 7.1.3(c)(2). In the Court’s view, Sun has reserved for its Reply Brief discussion of several
post-Twombly
cases directly on point.
See, e.g., Home Mgt. Solutions, Inc. v. Prescient, Inc.,
No. 07-20608,
. In fact, Aruba devoted eight detailed paragraphs, constituting a page and a half of its twenty-page Answer, to alleging its equitable estoppel defense. A review of Aruba’s Answer confirms that, even, though this Court characterized the factual record as to equitable estoppel as "sparse,” Aruba adequately pleaded the elements of a prima facie equitable estoppel defense. (See D.I. 8 in 07-519-JJF at 7-8.)
. The Third Circuit has stated that the "purpose of requiring the defendant to plead available affirmative defenses in his answer is to avoid surprise and undue prejudice by providing the plaintiff with notice and the opportunity to demonstrate why the affirmative defense should not succeed.”
In re Sterten,
