Astornet Technologies Inc. v. Bae Systems, Inc.

802 F.3d 1271, 116 U.S.P.Q. 2d (BNA) 1523, 2015 U.S. App. LEXIS 16535, 2015 WL 5449727
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 17, 2015
Docket2014-1854, 2015-1006, 2015-1007
StatusPublished
Cited by30 cases

This text of 802 F.3d 1271 (Astornet Technologies Inc. v. Bae Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Astornet Technologies Inc. v. Bae Systems, Inc., 802 F.3d 1271, 116 U.S.P.Q. 2d (BNA) 1523, 2015 U.S. App. LEXIS 16535, 2015 WL 5449727 (Fed. Cir. 2015).

Opinion

TARANTO, Circuit Judge.

Astornet Technologies, Inc. alleges that it is the sole exclusive licensee and owner of all rights in United States Patent No. 7,639,844, issued in December 2009 to Michael Haddad as the inventor and entitled “Airport vehicular gate entry access system.” In what ended up as three separate actions, Astornet asserted the patent against three corporations — NCR Government Systems, LLC; MorphoTrust USA, LLC; and BAE Systems, Inc. Astornet alleged that (a) NCR, MorphoTrust, and a subsidiary of BAE Systems, Inc. had contracts with the Transportation Security Administration (TSA), an agency of the United States government, to supply TSA certain boarding-pass scanning systems, (b) TSA’s use of the equipment infringed and would infringe the patent, and (c) NCR and MorphoTrust were bidding for another contract to supply modified equipment whose use by TSA would also infringe.

The district court dismissed the actions, relying on several grounds, among them that Astornet’s exclusive remedy for the alleged infringement was a suit against the United States in the Court of Federal Claims under 28 U.S.C. § 1498. While rejecting the district court’s rationale for dismissal on other grounds, we agree that § 1498 bars these actions. We therefore affirm the dismissal.

BACKGROUND

A

Because these consolidated cases come to us on appeals from dismissals under Fed.R.Civ.P. 12(b)(6), we rely on the facts as alleged in the operative complaints and attachments (there being no material supplemental facts of public record subject to *1274 judicial notice). See E.I. du Pont de Nemours & Co. v. Kolon Indus., Inc., 637 F.3d 435, 448-49 (4th Cir.2011); Philips v. Pitt County Memorial Hosp., 572 F.3d 176, 180 (4th Cir.2009).

In June 2009, TSA sought bids for equipment it would use for scanning airline passengers’ boarding passes at airports in a Credential Authentication Technology-Boarding Pass Scanning System (CAT/ BPSS), requiring that bidders set up demonstration kiosks for TSA’s review. Astor-net bid but was unsuccessful, at least partly because it did not provide the required demonstration kiosk. In September 2011, TSA entered into contracts with NCR, a company for which MorphoTrust eventually took over as the supplier under the contract, and a corporation called BAE Systems Information Solutions Inc., which is a subsidiary of a subsidiary of BAE Systems, Inc. (according to appellees’ undisputed representation to this court citing BAE Systems, Inc.’s website).

TSA made some purchases under the initial phase of the 2011 contracts, but it postponed further procurements in June 2012. More than a year later, TSA solicited proposals for revised CAT/BPSS equipment, setting January 21, 2014 as the due date for bids. Astornet, NCR, and MorphoTrust, but not any BAE Systems Inc. entity, submitted proposals. The operative complaints here were filed before any award in the new solicitation.

B

The litigation that forms the backdrop to the present appeals began some months after the September 2011 award of contracts. On March 9, 2012, Mr. Haddad, in his own name, filed two actions alleging infringement of the '844 patent, in both of which he stated that he was “doing business as wholly owned Astornet Technologies, Inc.” J.A. V-l-1; J.A. VI-1-1. He filed one action in the Court of Federal Claims under 28 U.S.C. § 1498, naming the United States as the defendant. He filed the other action in district court in the District of Maryland, naming several defendants: NCR; MorphoTrust’s predecessor (under the 2011 contract); two subsidiaries of BAE Systems, Inc. (including BAE Systems Information Solutions); and TSA and the United States Army. Both actions focused on the TSA contracts — the 2011 contracts and those proposed in the resolicitation — and the equipment purchased and to be used under those contracts.

The simultaneous filing of the two complaints involving essentially the same operative facts caused a problem, under 28 U.S.C. § 1500, for Mr. Haddad’s ability to maintain his action in the Court of Federal Claims. See, e.g., United States v. Tohono O’Odham Nation, 563 U.S. 307, 131 S.Ct. 1723, 179 L.Ed.2d 723 (2011) (Court of Federal Claims lacks jurisdiction if filed when other case involving substantially the same operative facts is pending in another court); Harbuck v. United States, 378 F.3d 1324, 1328 (Fed.Cir.2004) (simultaneously filed cases subject to § 1500). On May 10, 2012, the government moved to dismiss the Court of Federal Claims action under § 1500. In that motion the government explained that “the simplest solution is for plaintiff to voluntarily dismiss both this action and the district court action, and then refile his section 1498 action in the Court of Federal Claims.” J.A. V-13-7 to -8. On June 5, 2012, the Court of Federal Claims dismissed the ease before it. That dismissal is not challenged here.

The dismissal occurred even though, in the meantime, Mr. Haddad, proceeding *1275 pro se, had dismissed his Maryland district court action before any substantive litigation occurred — thus beginning a series of filings to correct the initial dismissal to try to ensure that the dismissal would be without prejudice to Mr. Haddad’s ability to pursue his claims on their merits in the proper forum. On May 8, 2012, before any defendant even appeared in the case, Mr. Haddad filed a notice withdrawing his case “with prejudice”; the district court approved the filing the next day, and the endorsed filing was entered on the docket on May 11, 2012. See J.A. VI-20-1 (district court ruling, quoting May 8 filing). “That same day, Haddad filed a ‘Motion to Withdraw,’ attempting to ‘supersede’ and ‘replace’ his May 8th notice of dismissal and ‘withdraw [his case] without prejudice.’ ” Id. (alteration in original). On May 16, Mr. Haddad filed a letter “explaining that he made a mistake when he dismissed the action on May 8th ‘with prejudice.’ ” Id. Almost six months later, on November 7, the district court “entered an Order providing that the case remained closed and dismissed with prejudice pursuant to Haddad’s May 8th filing.” Id. A week later, Mr. Haddad filed a motion for relief, which the court denied as moot on November 15. Id. On November 19, Mr. Haddad filed further motions, which the court denied on November 28. J.A. VI-20-1 to -2.

On December 12, 2012, Mr. Haddad— represented by counsel — moved to reconsider at least the most recent denial of relief. The district court granted the motion on August 8, 2013. J.A. VI-20-1 to - 4. It found that Mr.

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802 F.3d 1271, 116 U.S.P.Q. 2d (BNA) 1523, 2015 U.S. App. LEXIS 16535, 2015 WL 5449727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/astornet-technologies-inc-v-bae-systems-inc-cafc-2015.