District Judge Jesse Furman
A judge confirmed law firm Mishcon’s attachment of former client Grail’s sole asset, the ’552 Patent. Based on their April 2012 settlement, an arbitrator awarded Mishcon $2.11 million. Award was confirmed May 25. Mishcon agreed to delay judgment’s entry until July 11 to allow Grail time to finance satisfaction. Discussing New York Civil Practice Law and Rules §§5225 and 5240, district court granted Mischon’s petitionby order to show causefor the patent’s turnover, for sale satisfying judgment. To the extent §5240 granted discretion to refrain from ordering turnover, the court declined to exercise jurisdiction. The delay so that Grail could obtain financing to satisfy judgment tilted the balance of equities in favor of allowing Mischon’s collection on judgment. Discussing the elements outlined in Hotel 71 Mezz Lender LLC v. Falor, the court found appointment of a receiver to sell the patent warranted. Citing Gasser Chair Co. Inc. v. Infanti Chair Mfg. Corp. it noted that appointment of a receiver to conduct the sale of the patent would increase the likelihood of satisfaction of the judgment as compared to a sheriff’s sale, given that the patent is an intangible property interest whose valuation is difficult due to the absence of a ready market.
