Cadence Design Systems, Inc. v. Intelligent Automation (Zhuhai) Co., Ltd.

Case No. 24-cv-07031-PCP (N.D. Cal. Jan. 26, 2026) · United States District Court for the Northern District of California · January 26, 2026 · No. 24-cv-07031-PCP

Summary

The United States District Court for the Northern District of California denied nonparties Intelligent Automation Technology Inc. and Xuejian Wei’s motion for relief from a magistrate judge’s nondispositive order certifying facts regarding their civil contempt for failing to comply with document subpoenas. The court found no legal or clear factual error in the magistrate judge’s ruling under Federal Rule of Civil Procedure 72(a). The court ordered the nonparties to show cause why they should not be sanctioned for civil contempt and set briefing and hearing dates.

Court
United States District Court for the Northern District of California
Jurisdiction
United States District Court for the Northern District of California
Decision date
January 26, 2026
Docket number
24-cv-07031-PCP
Disposition
other

Questions Presented

  1. Whether the magistrate judge's certification of facts concerning IAT and Wei's civil contempt was clearly erroneous or contrary to law under Federal Rule of Civil Procedure 72(a).
  2. Whether IAT and Wei bore the burden in the contempt proceeding to rebut Cadence's prima facie showing by demonstrating substantial compliance or that they had taken all reasonable steps to comply.
  3. Whether the district court should issue an order to show cause why IAT and Wei should not be sanctioned for civil contempt.

Holdings

  1. The magistrate judge's order certifying facts was neither legally erroneous nor clearly erroneous because it correctly applied the civil-contempt standard and was supported by the factual record.
  2. Once Cadence made a prima facie showing of noncompliance, IAT and Wei bore the burden to rebut it by showing substantial compliance or that they took all reasonable steps within their power to comply.
  3. The district court denied IAT and Wei's motion for relief and issued an order to show cause why they should not be sanctioned for civil contempt.

Court Document

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