PORTLAND, Ore. — The state of Oregon on Friday won the first round against Oracle Inc. in their legal dispute over the failed Cover Oregon health insurance website after a judge rejected Oracle’s effort to try the case exclusively in federal court.
U.S. District Judge Anna Brown cited procedural problems with Oracle’s request, and her decision may be short-lived. A company lawyer said Oracle will file a new request to have the disputes heard in federal court.
Oracle was Cover Oregon’s main technology contractor, but it blames the website’s failure on mismanagement by the state. The company filed a lawsuit in August claiming copyright infringement, breach of contract and unpaid bills.
Two weeks later, Oregon filed a separate lawsuit in state court accusing Oracle of corruption and false claims.
Before they argue the merits of their cases, however, the state and Oracle are jockeying for their preferred venue to try the case. Legal experts say a jury in Salem, the state capital, may be more inclined to believe the state’s side of the story.
Because copyright claims can be heard only in federal court, Oracle argues the entire case should be tried there.
The judge rejected Oracle’s request because, at the time it was made, the state case did not contain a copyright dispute. Oracle has since raised the copyright issue in Marion County Circuit Court, and Oracle lawyer Karen Johnson-McKewan told the judge the company will refile its request to transfer the case to federal court.
Brown, the judge, repeatedly urged the lawyers to come up with a resolution on their own. She said it would be preferable to try the dispute in one courtroom but pledged to work closely with a state judge if the cases proceed separately.
“Oregon has a long tradition in the state and federal courts of cooperating,” Brown said.
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