Gross v. Keen Group Solutions, L.L.C., No. 20-20594 (5th Cir. 2021)
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BillCutterz granted KGS a license to sell BillCutterz’s services and intellectual property. The parties agreed to arbitrate their disputes; BillCutterz was entitled to royalties and commissions based on KGS’s revenue. The Agreement automatically renews for successive five-year periods until terminated “for cause.” In 2017, a dispute arose. An arbitrator ordered KGS to pay BillCutterz all unpaid commissions and royalties through December 31, 2017, and from January 1, 2018 “for the duration of the License Agreement.” BillCutterz sought confirmation of the award. KGS moved to vacate the award. The district court confirmed the award. KGS filed numerous unsuccessful motions and an unsuccessful appeal but paid the retrospective relief and at least part of the prospective relief. The parties continue to disagree about whether the award’s order entitles BillCutterz to ongoing compensation and whether KGS incurred (and perhaps diverted) revenue after December 6, 2018.
KGS sought relief from the judgment, arguing that it fully satisfied all obligations through December 6, 2018, that it ceased operating on that date, and had terminated the License Agreement. KGS sought “protection” from post-judgment discovery. BillCutterz suspected that KGS was still earning revenue under another trade name. The district court refused KGS relief and granted BillCutterz’s motion to compel discovery. The Fifth Circuit dismissed an appeal for lack of jurisdiction. Pending discovery and adjudication based on such discovery of whether KGS has fully satisfied the arbitration award, there is no final judgment to consider.
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