Abbott Laboratories v. DEY, LP

110 F. Supp. 2d 667, 55 U.S.P.Q. 2d (BNA) 1728, 2000 U.S. Dist. LEXIS 13659, 2000 WL 1157142
CourtDistrict Court, N.D. Illinois
DecidedJune 28, 2000
Docket00 C 1725
StatusPublished
Cited by9 cases

This text of 110 F. Supp. 2d 667 (Abbott Laboratories v. DEY, LP) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbott Laboratories v. DEY, LP, 110 F. Supp. 2d 667, 55 U.S.P.Q. 2d (BNA) 1728, 2000 U.S. Dist. LEXIS 13659, 2000 WL 1157142 (N.D. Ill. 2000).

Opinion

*668 MEMORANDUM OPINION AND ORDER

KENNELLY, District Judge.

In this patent case, Tokyo Tanabe Company, Ltd., now known as Mitsubishi-Tokyo Pharmaceuticals, Inc., and its exclusive United States licensee, Abbott Laboratories, have sued Dey, L.P. and Dey, Inc., for infringement of U.S. Patent No. 4,338,301 (the ’301 patent) and U.S. Patent No. 4,397,839 (the ’839 patent), which cover respectively an extract from mammalian lung tissue useful for treating hyaline-membrane disease and a method for producing the extract and a surface active material and process for preparing the material. Under the licensing agreement with Tanabe, Abbott used the technology covered in the patents to make Survanta®, a surfactant 1 product used to *669 treat Respiratory Distress Syndrome in premature babies. Abbott received FDA approval to market and distribute Survan-ta® in 1991 and has marketed and distributed the product since that time; In November 1999, the FDA granted Dey approval to market and distribute Curo-surf®, a surfactant replacement product also derived from mammalian lungs. In this action, Tanabe and Abbott allege that Curosurf® and its components fall within the scope of at least one claim of the ’301 patent and at least one claim of the ’839 patent. The plaintiffs have moved for a preliminary injunction prohibiting Dey from making, using, selling, offering to sell, or importing Curosurf® until the ’839 patent expires on June 1, 2005. 2 The Court has scheduled a hearing on the preliminary injunction motion for July 6, 2000.

The purpose of this Order is to address and resolve two preliminary issues. The first issue involves the effect, if any, of a 1998 decision issued by Judge Richard Ar-cara in Forest Laboratories, Inc. and ONY, Inc. v. Abbott Laboratories and Tokyo Tanabe Company, Ltd., No. 96 CV-159A, in the Western District of New York concerning the construction of certain claims of the ’301 and ’839 patents. The second issue involves whether the plaintiffs are entitled to rely on the doctrine of equivalents to prove that Dey’s product infringes the claims of the patents in suit or whether Tokyo Tanabe relinquished the right to pursue infringement under that doctrine in the way it prosecuted the patent.

The Effect of Judge Arcara’s Decision

Defendants argue that Judge Arcara construed the same claim language that is disputed in this case and that his construction should carry the day here as well; they Contend that the doctrine of issue preclusion bars plaintiffs from relitigating those claim construction issues. Plaintiffs argue that the Court should not apply issue preclusion in this case because to do so would be unfair to them.

The doctrine of issue preclusion compels a court to honor the first actual decision of a matter that has been litigated. See Chicago Truck Drivers v. Century Motor Freight, 125 F.3d 526, 530 (7th Cir.1997) (citing 18 Charles A. Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice & Procedure § 4416, at 136 (1981 & Supp.1997)). 3 Generally, issue preclusion is appropriate if: (1) the issue sought to be litigated is identical to one decided in a prior action; (2) that issue was actually litigated in the first action; (3) the determination of the issue was essential to the final judgment in the first action; and (4) the party against whom estoppel is invoked had a full and fair opportunity to litigate the issue in the first action. Century, 125 F.3d at 530 (citing La Preferida, Inc. v. Cerveceria Modelo, S.A. de C.V., 914 F.2d 900, 906 (7th Cir.1990)); A.B. Dick Co. v. Burroughs Corp., 713 F.2d 700, 702 (Fed.Cir.1983), cert. denied, 464 U.S. 1042, 104 S.Ct. 707, 79 L.Ed.2d 171 (1984). All of these conditions are met here. The claim construction issues disputed in this case are the same issues litigated in the Forest case; Abbott and Tokyo Tanabe *670 briefed and argued the issues before Judge Arcara, and the judge’s claim construction ruling was necessary to the final judgment in the case concerning infringement.

But that does not end the inquiry. In some circumstances, even when these conditions are met, the court may decline to apply issue preclusion. The United States Supreme Court, the Seventh Circuit and the Federal Circuit have all said that courts should not apply non-mutual offensive collateral estoppel (or issue preclusion), which is what this is, if it would be unfair to the defendant. See Parklane Hosiery Co. v. Shore, 439 U.S. 322, 331, 99 S.Ct. 645, 58 L.Ed.2d 552 (1979); Century, 125 F.3d at 531; A.B. Dick, 713 F.2d at 702. The court should refuse to apply issue preclusion if, for example, the defendant had little incentive to defend vigorously in the first suit because he was sued for small or nominal damages, or if the first judgment is inconsistent with one or more previous judgments in the defendant’s favor, or if the second action affords the defendant procedural opportunities (e.g., discovery procedures) unavailable in the first action that could cause a different result. See Parklane, 439 U.S. at 330-31, 99 S.Ct. 645, cited in Century, 125 F.3d at 531. Nor should the doctrine be applied “when the issue is of general interest and has not been resolved by the highest appellate court that can resolve it.” Century, 125 F.3d at 531 (citing Restatement § 29 Comment i; United States v. Alcan Aluminum Corp., 990 F.2d 711, 719 (2d Cir.1993)). The Seventh Circuit has held that “determining ‘whether or not application of [issue preclusion] is fair depends upon a case by case analysis,’ and that courts should be sensitive to the ‘practical realities which surround the parties.’ ” Century, 125 F.3d at 531 (quoting Butler v. Stover Brothers Trucking Co., 546 F.2d 544, 551 (7th Cir.1977)). Thus, in Century, where the issue involved the validity of the PBGC’s regulation delaying withdrawal liability payments when an employer has filed for arbitration, the court refused to apply the doctrine to prevent the employer from relitigating the regulation’s validity because the issue decided was an unmixed question of law that was likely to arise again, all other courts to consider the issue had come out the other way, and the district court failed to distinguish any of those cases. Id. at 532.

This case does not appear to fall within any of these exceptions. The record suggests that Abbott and Tokyo Tanabe defended the Forest

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110 F. Supp. 2d 667, 55 U.S.P.Q. 2d (BNA) 1728, 2000 U.S. Dist. LEXIS 13659, 2000 WL 1157142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbott-laboratories-v-dey-lp-ilnd-2000.