ANCHOR WALL SYSTEMS v. Rockwood Retaining Walls, Inc.

610 F. Supp. 2d 998, 2009 U.S. Dist. LEXIS 26709, 2009 WL 928648
CourtDistrict Court, D. Minnesota
DecidedMarch 31, 2009
DocketCivil 99-1356 (JRT/FLN)
StatusPublished
Cited by2 cases

This text of 610 F. Supp. 2d 998 (ANCHOR WALL SYSTEMS v. Rockwood Retaining Walls, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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ANCHOR WALL SYSTEMS v. Rockwood Retaining Walls, Inc., 610 F. Supp. 2d 998, 2009 U.S. Dist. LEXIS 26709, 2009 WL 928648 (mnd 2009).

Opinion

MEMORANDUM OPINION AND ORDER

JOHN R. TUNHEIM, District Judge.

Plaintiff Anchor Wall Systems (“Anchor”) brought this patent infringement action against defendants Rockwood Retaining Walls, Inc. (“Rockwood”), Raymond R. Price, Gerald P. Price, GLS Industries, Inc. (“GLS”), and Equipment, Inc. (“Equipment”). After more than eight years of litigation — including a summary judgment ruling in favor of defendants, a successful appeal by Anchor to the Federal Circuit, a second summary judgment motion, a stipulated stay of the case *1004 to allow the United States Patent and Trademark Office (“PTO”) to reexamine Anchor’s patents, and a motion to dismiss — a jury concluded that defendants Rockwood, Raymond R. Price, Gerald P. Price, GLS, and Equipment induced infringement of several of Anchor’s patents and that GLS directly infringed on several of Anchor’s patents. The jury awarded Anchor $24,185,484 in damages. Defendants have now filed five separate motions for either judgment as a matter of law or a new trial. Anchor has also filed a motion for prejudgment and postjudgment interest, attorney’s fees, and costs. Finally, Anchor has filed several additional motions related to a stay preventing them from seeking to execute the judgment in this case, and a motion seeking sanctions. For the reasons given below, the Court denies defendants’ motions for judgment as a matter of law or a new trial; grants in part Anchor’s motion for attorney’s fees; grants Anchor leave to execute the judgment; and denies Anchor’s motion for sanctions.

BACKGROUND

Anchor is a licensing company based in Minnetonka, Minnesota, that owns patents on several designs for retaining-wall blocks. Anchor’s patents include Patent Numbers 5,704,183 (“the '183 patent”) and 5,711,129 (“the '129 patent”), which are collectively referred to as the “Vertica” patent family, and Patent Numbers 5,827,-015 (“the '015 patent”) and 6,142,713 (“the '713 patent”), which are collectively referred to as the “Diamond” patent family.

Rockwood is a company based in Rochester, Minnesota, that also provides licenses for intellectual property related to retaining-wall blocks. Rockwood’s designs include the “Classic,” “StoneHedge,” “Legend,” “Cottage Stone,” “Cottage Stone II,” “Cottage Stone III,” and “Cottage Stone IV” blocks. GLS is the largest manufacturer and distributor of Rockwood blocks, and manufactures the blocks with equipment leased from Equipment. Raymond and Gerald Price were at one time owners and officers of Rockwood, GLS, and Equipment.

In September 1999, Anchor filed this patent infringement action against Rock-wood, Raymond P. Price, Gerald P. Price, GLS, and Equipment. Anchor alleged that Rockwood’s Classic blocks infringe on its Vertica patents and that Rockwood’s Cottage Stone II, Cottage Stone III, and Cottage Stone IV blocks infringe on its Diamond patents. Anchor also alleged that each of the defendants induced the other defendants to infringe on its patents.

In April 2002, United States District Judge David S. Doty granted defendants’ motion for summary judgment. Anchor Wall Sys., Inc. v. Rockwood Retaining Walls, Inc., 252 F.Supp.2d 838 (D.Minn.2002). This Order was later reversed in part by the United States Court of Appeals for the Federal Circuit. Anchor Wall Sys., Inc. v. Rockwood Retaining Walls, Inc., 340 F.3d 1298 (Fed.Cir.2003). The Federal Circuit disagreed with Judge Doty’s construction of several critical claim terms, and remanded the case for further proceedings. Defendants later moved for summary judgment a second time based on the claim constructions given by the Federal Circuit, and this Court denied that motion. Anchor Wall Sys., Inc. v. Rockwood Retaining Walls, Inc., No. 99-1356, 2004 WL 2066823 (D.Minn. Sept. 7, 2004).

In February 2005, after the parties had submitted documents in preparation for trial, the parties submitted a joint motion to stay the case. (Docket No. 303.) The purpose of the stay was to allow the United States Patent and Trademark Office (“PTO”) to re-examine several of Anchor’s patents. After the PTO determined that each of the reexamined patents was valid, the stay was lifted in September 2006. *1005 (Docket No. 318.) The Court later denied an additional motion to dismiss brought by the defendants on October 30, 2007, 2007 WL 3237622. (Docket No. 479.)

This case was tried before a jury beginning on January 22, 2008. Following several weeks of testimony, a jury deliberated for several days and concluded on March 3, 2008, that defendants Rockwood, Raymond R. Price, Gerald P. Price, GLS, and Equipment induced infringement of several of Anchor’s patents and that GLS directly infringed on Anchor’s patents. They jury did not find, however, that any infringement was “willful.” The jury awarded Anchor $24,185,484 in damages. The Court now turns to the post-trial motions filed by the parties below, setting forth additional factual and procedural background as necessary.

ANALYSIS

I. DEFENDANTS’ MOTIONS FOR JUDGMENT AS A MATTER OF LAW OR NEW TRIAL

A. Motions for Judgment as a Matter of Law

Under Rule 50 of the Federal Rules of Civil Procedure, judgment as a matter of law is appropriate if no reasonable juror could have returned a verdict for the nonmoving party. Weber v. Strippit, Inc., 186 F.3d 907, 912 (8th Cir.1999). In analyzing a Rule 50 motion, the Court must consider the evidence in the light most favorable to the nonmovant, resolve all factual conflicts in the nonmovant’s favor, and give the nonmovant the benefit of all reasonable inferences. Ogden v. Wax Works, Inc., 214 F.3d 999, 1002 (8th Cir.2000). “Judgment as a matter of law is appropriate when the record contains no proof beyond speculation to support the verdict.” Heating & Air Specialists v. Jones, 180 F.3d 923, 932 (8th Cir.1999). However, “[a] party may not challenge a verdict in a post-trial motion for judgment as a matter of law absent a properly made motion for a directed verdict at the close of all evidence.” Hoechst Celanese Corp. v. BP Chems. Ltd., 78 F.3d 1575, 1581-82 (Fed.Cir.1996).

1. Inducement Infringement

Under 35 U.S.C. § 271(b), “[w]hoever actively induces infringement of a patent shall be liable as an infringer.” To prevail on an inducement claim, “the patentee must show, first that there has been direct infringement, and second that the alleged infringer knowingly induced infringement and possessed specific intent to encourage another’s infringement.” Minn. Mining & Mfg. Co. v. Chemque, Inc., 303 F.3d 1294, 1304-05 (Fed.Cir.2002) (citation omitted). In DSU Med. Corp. v. JMS Co., 471 F.3d 1293

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610 F. Supp. 2d 998, 2009 U.S. Dist. LEXIS 26709, 2009 WL 928648, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anchor-wall-systems-v-rockwood-retaining-walls-inc-mnd-2009.