Advanced Hydraulics, Inc. v. Eaton Corp.

415 F. Supp. 283, 194 U.S.P.Q. (BNA) 321, 1976 U.S. Dist. LEXIS 14588
CourtDistrict Court, N.D. Illinois
DecidedJune 16, 1976
Docket72 C 2456
StatusPublished
Cited by8 cases

This text of 415 F. Supp. 283 (Advanced Hydraulics, Inc. v. Eaton Corp.) 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
Advanced Hydraulics, Inc. v. Eaton Corp., 415 F. Supp. 283, 194 U.S.P.Q. (BNA) 321, 1976 U.S. Dist. LEXIS 14588 (N.D. Ill. 1976).

Opinion

MEMORANDUM OPINION AND ORDER

FLAUM, District Judge:

This cause comes before the court on the motion of defendant, Eaton Corporation (“Eaton”), for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. Although the defendant previously has presented a motion for summary *284 judgment in this ease, which was denied on February 3, 1975, because of a subsequent clarification of law this court shall treat this motion as a motion for reconsideration and therefore is not precluded from rendering judgment.

The complaint in this action alleges that defendant infringed U.S. Patent No. 2,647,-590 relating to hydraulic elevators which was held' by plaintiff, in that defendant manufactured and sold lift trucks embodying the invention claimed in the plaintiff’s patent during the years prior to the filing of this suit. Because the patent had expired in August, 1970, over two years prior to the instigation of this action, neither injunctive relief nor damages accruing after suit are being sought. Defendant has denied the complaint’s allegations and seeks a declaratory judgment that the patent was invalid.

Defendant’s argument in this motion for summary judgment is that plaintiff’s claim for damages should be barred by reason of laches and estoppel. After reviewing the exhibits and the memoranda filed by counsel for both parties, this court, finding no genuine issue as to any material fact, holds that the defendant is entitled to judgment as a matter of law on the grounds of laches.

The facts relevant for the determination of the issues raised by this motion are as follows. On February 16, 1951, Carl A. Anderson, Jr. (“Anderson”) filed an application for a patent relating to hydraulic elevators which was granted on August 4, 1953, as U.S. Patent No. 2,647,590. In March, 1967, Anderson and other persons organized Advanced Hydraulics, Inc., (“Advanced”), plaintiff in this action, and thereupon assigned to it the Anderson patent. Eaton was engaged in the business of manufacturing lift trucks for at least four years prior to Anderson’s application for a patent.

On June 30, 1967, Advanced sent a letter to Eaton stating that “various lift truck models EST manufactured by your Automatic Lift Truck Division and Yale lift trucks K 58-020” were infringing Advanced’s patent No. 2,647,590 relating to hydraulic elevators. Advanced suggested that Eaton accept a licensing arrangement and that if the situation of infringement was not resolved, litigation for injunctive relief and damages would ensue.

Eaton responded to the June 30, 1967 Advanced letter on July 17, 1967. In that July 17 letter, Eaton took the position that it was not infringing any valid patent held by Advanced. Thus, Eaton immediately took a position of noninfringement in its relation to Advanced’s claims. After July 17, 1967 there was no contact between Advanced and Eaton until the present action was filed in 1972, over five years later.

One other fact is of great importance. In 1969, the inventor Anderson died. As there is a critical question raised by defendant as to the date of reduction to practice of the invention concerned in this litigation, the loss of the inventor as a witness constitutes the loss of a material witness to the defendant.

The defendant argues that the five-year delay by Advanced in carrying out its threat of suit has caused it injury and therefore the plaintiff is barred, as a matter of equity, from bringing this action. Although the defendant couches his equitable argument in terms of “estoppel,” this case is appropriately resolved on the ground of laches.

The case which is controlling in this litigation is Technitrol, Inc. v. Memorex Corp., 376 F.Supp. 828 (N.D.Ill.1974), aff’d per curiam and lower court opinion adopted by court, 513 F.2d 1130 (7th Cir. 1975). In that case the court explained in full the applicability of the doctrine of laches to unexcused delays in carrying out threats of the initiation of patent suits. In Technitrol, the court held that where the plaintiff was only seeking damages for past infringement, and no prospective relief was sought, summary judgment on the basis of laches is appropriate. Id. at 831. “In order to effectively assert the defense of laches,” the court said, “two elements must be present. First, there must be a lack of diligence on the part of the plaintiff. Second, there must be *285 injury to the defendant due thereto.” Id. at 830-31. The facts in Technitrol and the facts in the case at bar are almost identical. In both cases there were initial threats of suit by the patentee with a subsequent delay after the alleged infringer asserted a firm position of noninfringement. While it is true that the delay in Technitrol was styled as one of 18 years, and the delay in this case is five years, both delays are sufficiently unreasonable that a court of equity should act where it finds detriment to the defendant. Baker Mfg. Co. v. Whitewater Mfg. Co., 430 F.2d 1008 (7th Cir. 1970) (6-year delay); Kimberly Corp. v. Hartley Pen Co., 237 F.2d 294 (9th Cir. 1956) (cited by court in Technitrol; involved a 4-year delay).

Therefore, the unexcused delay of five years is sufficient to sustain a finding of laches as a matter of law where detriment to the defendant is found.

Moreover, the injuries suffered by the defendants in this case and in Technitrol are the same. In both cases a key witness for the defense died and the defendant’s position in the litigation was adversely affected. As the court found in Advanced Hydraulics, Inc. v. Otis Elevator Co., 525 F.2d 477 (7th Cir.), cert. denied, 423 U.S. 869, 96 S.Ct. 132, 46 L.Ed.2d 99 (1975), the loss of the inventor of a patent as a witness when the issue of reduction to practice is raised, “sorely prejudice^]” a defendant. Id. at 482. Furthermore, in both cases there is the continuing operation of the business by the defendants that was allowed to occur by the plaintiffs’ failure to assert their claims in a timely manner.

Therefore, in the case at' bar, the two requirements for establishing laches to bar plaintiff’s action are met and summary judgment as a matter of law is appropriate.

Plaintiff, however, has raised several points which merit consideration but which do not alter the ultimate disposition of this cause.

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Bluebook (online)
415 F. Supp. 283, 194 U.S.P.Q. (BNA) 321, 1976 U.S. Dist. LEXIS 14588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advanced-hydraulics-inc-v-eaton-corp-ilnd-1976.