Bourns, Inc. v. Allen-Bradley Co.

348 F. Supp. 554, 176 U.S.P.Q. (BNA) 47, 1972 U.S. Dist. LEXIS 15275
CourtDistrict Court, N.D. Illinois
DecidedFebruary 2, 1972
DocketNo. 70 C 1992
StatusPublished
Cited by7 cases

This text of 348 F. Supp. 554 (Bourns, Inc. v. Allen-Bradley Co.) 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
Bourns, Inc. v. Allen-Bradley Co., 348 F. Supp. 554, 176 U.S.P.Q. (BNA) 47, 1972 U.S. Dist. LEXIS 15275 (N.D. Ill. 1972).

Opinion

DECISION and ORDER

MeMILLEN, District Judge.

This cause comes on to be heard on motion of the defendants for summary judgment on the ground of collateral estoppel under Blonder-Tongue Laboratories, Inc. v. University of Illinois Foundation, 402 U.S. 313, 91 S.Ct. 1434, 28 L.Ed.2d 788 (May 3, 1971). The court concludes that the defendants’ Motion should be granted, with the result that a final judgment will be entered in their favor. The earlier motions filed by the defendants are thereby rendered obsolete.

The Complaint in the case at bar was filed on August 11, 1970 by the owner and assignee of United States Patent No. 2,777,926 issued on January 19, 1957. Plaintiffs allege that six corporate defendants, as representatives- of a class, had been infringing their patent for six years and would continue to do so unless enjoined. Defendants answered separately and alleged that the patent was invalid for obviousness and for other reasons. They also alleged that plaintiffs were estopped and barred from the instant action by virtue of a final judgment entered against them by the United States District Court for Nebraska in Bourns, Inc. v. Dale Electronics Inc., 308 F.Supp. 501 (D.Neb.1969).

[556]*556After the decision in Blonder-Tongue, swpra, defendants filed amended answers in which they alleged further that plaintiffs had acquiesced in the Nebraska judgment by voluntarily dismissing their appeal to the United States Court of Appeals for the Eighth Circuit on May 4, 1970. Defendants thereupon filed the instant motions for summary judgment which in substance are motions for judgment on the pleadings under F.R.Civ.P. 12(c).

The only question on such a motion is whether a genuine issue of material fact remains to be decided and, if not, whether the moving parties are entitled to judgment as a matter of law. Since plaintiffs did not move to strike or to file a reply to defendants’ affirmative defenses of estoppel and res judica•ta, the pleadings do not spell out plaintiffs’ position with respect to these defenses. The court has considered the contentions made in plaintiffs’ brief, however, in light of the defenses suggested by the Supreme Court’s decision in its unanimous Blonder-Tongue decision.

Despite possible harshness on occasion, there can be no doubt that Blonder-Tongue applies retrospectively. Monsanto Co. v. Dawson Chemical Co., 443 F.2d 1035 (5th Cir. 1971), petition for cert. filed, No. 71-787, 40 U.S.L.W. 3356. It is true that plaintiffs were not apprised of this particular decision when they abandoned their appeal to the Eighth Circuit, but there were rumblings of it (cf. 402 U.S. 313, 91 S.Ct. at p. 1453). The same unfortunate turn of events occurred in Blonder-Tongue when the University of Illinois Foundation unexpectedly became bound by an adverse decision of the Eighth Circuit in University of Illinois Foundation v. Winegard Co., 402 F.2d 125 (8 Cir. 1968), cert. den. 394 U.S. 917, 89 S.Ct. 1191, 22 L.Ed.2d 452 (1969). The Supreme Court could have softened the blow by ruling only prospectively in Blonder-Tongue, as it has done on several occasions. Cf. England v. Louisiana State Bd. of Med. Exam., 375 U.S. 411, 84 S. Ct. 461, 11 L.Ed.2d 440 (1964). But the court no doubt felt that the public policy which it was enunciating in Blonder-Tongue was sufficient to justify an all-embracing decision.

Plaintiffs argue that the adverse decision by the federal court in Nebraska did not affect the entire patent but only certain of its claims. This argument is based primarily on that court’s judgment order, entered after the decision reported at 308 F.Supp. 501, which reads in part: “Claims 1, 2, 11, 14, 15, 16 and 20 of United States Patent No. 2,777,926 are invalid.” The court then dismissed the Amended Complaint “with prejudice” and sustained the Amended Counterclaim “to the extent indicated.” The record in that case does not reveal whether the parties thereafter treated the patent as invalid, but the court's published opinion makes clear that it found the entire patent invalid. Among other things, the court’s decision says with respect to Patent No. 2,777,926: “ . . . the ’926 patent is held to be invalid.” 308 F.Supp. at 507.

The pleadings in the Nebraska suit demonstrate that both the plaintiffs and the defendant were litigating the validity of the patent, not merely part of it. The Amended Complaint alleged that the patent was “duly and regularly issued” to the plaintiffs and that the defendant had been infringing it for six years. Plaintiffs sought an injunction, damages and attorneys fees “pursuant to the patent laws of the United States.” Defendant in its Amended Answer denied knowledge of whether the patent was duly and regularly issued and stated “Plaintiffs are left to their proofs.” Defendant also pleaded affirmative defenses and filed a counterclaim for declaratory judgment in which it alleged that the patent was invalid by reason of anticipation, obviousness, and other grounds going to the entire patent. Nowhere in the pleadings are specific claims or partial invalidity alleged.

In the case at bar the Complaint and Answers likewise go to the validity of the entire patent, and no mention is [557]*557made of specific claims. Plaintiffs now contend that they are relying herein on Claims Nos. 3, 4, 6, 7, 12, 19, 21 and 22, as well as the ones itemized by the Nebraska judgment order. Plaintiffs’ specification in the case at bar arises from their answers to interrogatories when the defendants inquired as to specific claims which their particular devices were allegedly infringing. Plaintiffs answered by listing most, if not all, of the 22 claims in their patent (Supplemental Answer filed July 20, 1971), but they have never amended their complaint to allege that they were relying on the validity of those claims not specified by the Nebraska court. We conclude that the Nebraska judgment order is explained by the same procedures as explains this particular defense raised by the plaintiffs: the court was referring to the claims alleged to be infringed by a defendant’s product but had no intention of changing its decision of invalidity. Blonder-Tongue precludes us from relitigating this decision.

Even if Blonder-Tongue is potentially a bar to the entire complaint (as this court holds), plaintiffs seek to avail themselves of the exceptions left open to them by the Supreme Court’s decision. Plaintiffs argue that the Nebraska court failed to grasp the issues of the controversy and in particular misapplied Graham v. John Deere Co., 383 U.S. 1, 86 S.Ct. 684, 15 L.Ed.2d 545 (1966). The Supreme Court cited this case as one example where a trial court might have completely failed to meet and decide the issues before it, therefore aborting estoppel. From an examination of the Nebraska court’s decision, however, it not only appears that the court cited and purported to follow Graham v. John Deere Co.

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Bluebook (online)
348 F. Supp. 554, 176 U.S.P.Q. (BNA) 47, 1972 U.S. Dist. LEXIS 15275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bourns-inc-v-allen-bradley-co-ilnd-1972.