Bailey

Virtual Fonlink, Inc. v. Bailey

Good Law
164 F. App'x 606
United States Court of Appeals for the Ninth CircuitJanuary 24, 2006No. 04-55408, 04-55414California942 words

Opinion

Lead Opinion

MEMORANDUM **

Kenneth S. Bailey appeals the district court’s denial of his motions, based on Fed.R.Civ.P. 60(b)(6) and a fraud-on-the-court theory, to set aside two default judgments entered against him in 2002. Mansfield Partners (“Mansfield”), in the name of Virtual Fonlink, Inc., filed two actions against Bailey. The first action sought an injunction against Bailey, and the second requested damages. The judgment in the first action, entered on June 26, 2002, enjoined Bailey from certain actions adverse to the corporation and awarded attorney’s fees to Mansfield. The second judgment, entered on September 3, 2002, awarded damages to Mansfield and against Bailey in an amount exceeding $805,000. We affirm the denials of Bailey’s motions.

Because the parties are familiar with the facts, we do not recite them in detail. Bailey patented an invention that would allow mobile, point-of-sale credit card purchases involving cell phones. In 2000, he formed a company, transferring ownership of the patented invention to it, to exploit this invention, and approached Mansfield to provide capital for his company’s growth. The parties agreed to share ownership and control of the company,…

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