Chamberlain Group, Inc. v. Lear Corp., No. 05 C 3449, 2007 WL 1238908 (N.D. Ill. Apr. 25, 2007) (Moran, J.).

Judge Moran denied defendant Lear’s motion to stay the Court’s preliminary injunction pending appeal to the Federal Circuit,* but did allow third party General Motors ("GM") to intervene of right and modified the PI to limit harm to defendant and GM.  In a March 30, 2007 opinion and order, the Court granted plaintiffs’ motion for a preliminary injunction, preventing defendant from marketing and selling its garage door opener transmitters based upon the Court’s prior claim constructions (these opinions are available in the Blog’s archives).  The Court held that Lear could not show a likelihood of success on the merits, in part because the Court’s "Markman decision and subsequent reconsideration dealt an enormous blow to [Lear’s] case."  The Court acknowledged that while plaintiff would suffer irreparable harm without the PI, both Lear and GM could suffer irreparable harm because of the PI.  In order to resolve the irreparable harm issue, the Court revised the PI to exempt Lear’s sales to GM.  Because GM was Lear’s only client and because the exemption allowed GM to continue sourcing Lear’s product  the revised PI would remove harm to GM and substantially reduce Lear’s harm.  While Lear would not be able to add new customers, it would not have to idle its related workers and factories because Lear would not lose any customers.  Because the removal of GM sales from the PI substantially limits Lear’s potential harm, the Court denied Lear’s motion, supported by GM, to increase the bond from $10,000,000 to $50,000,000.

While GM was not a party to the suit, the Court, in a footnote, allowed GM to intervene of right pursuant to Fed. R. Civ. P. 24(a)(2) for the limited purposes of arguing for an exemption from the PI or a stay of it and to seek a higher injunction bond. 

*  Lear has already appealed the PI and the claim construction decision.