Bradford Novelty Co. v. Manheim

156 F. Supp. 489, 115 U.S.P.Q. (BNA) 278, 1957 U.S. Dist. LEXIS 2812
CourtDistrict Court, S.D. New York
DecidedNovember 14, 1957
StatusPublished
Cited by17 cases

This text of 156 F. Supp. 489 (Bradford Novelty Co. v. Manheim) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bradford Novelty Co. v. Manheim, 156 F. Supp. 489, 115 U.S.P.Q. (BNA) 278, 1957 U.S. Dist. LEXIS 2812 (S.D.N.Y. 1957).

Opinion

IRVING R. KAUFMAN, District Judge.

This is a suit arising out of an alleged patent infringement. One of the defendants, Samuel Eppy & Co., Inc., hereinafter referred to as “Eppy”, has moved to dismiss the complaint against him on grounds of improper venue.

The complaint charges Eppy and his distributor, one Magnus M. Manheim, with infringing plaintiff’s patent for Christmas tree ornaments by manufacturing and selling within the Southern District and elsewhere in the United States Christmas ornaments allegedly modeled after and copied from plaintiff’s patented product. A further cause of action charging unfair competition is directed solely against the moving defendant.

The plaintiff was incorporated and has its principal place of business in Cambridge, Massachusetts. Defendant, Eppy, is a New York corporation allegedly engaged in the manufacture and sale of Christmas ornaments with its principal place of business in Jamaica, Queens, which is situated within the Eastern District of New York. Defendant, Manheim, who is not contesting the venue as to himself in this action, conducts his business in Manhattan and is reputedly one of Eppy’s primary distributors in the Southern District.

It is plaintiff’s contention that since venue has been properly laid in regard to one infringer who concededly has a place of business in this district and the acts of both defendants are joint and relate to the same article, in the interests of justice and convenience both actions should be tried together in the Southern District. While I am most sympathetic to plaintiff’s argument, being a strong advocate of liberal joinder where it will avoid duplication of judicial effort and the possibility of conflicting rulings, I must nevertheless apply the operative venue provisions as I find them.

The pertinent statute containing the venue provisions for a patent infringement action provides that:

“Any civil action for patent infringement may be brought in the judicial district where the defendant resides, or where the defendant has committed acts of infringement and has a regular established place of business.” 28 U.S.C. § 1400.

In order to establish venue in this district in compliance with the above statute plaintiff has alleged that Eppy is engaged in business in the Southern District. It would appear that this contention is founded on a telephone listing for defendant in the Manhattan telephone directory giving its address as 15 East 26th Street, New York City, in addition to the Jamaica address. This is the only shred of evidence linking this defendant to the Southern District. Actually, the operations at the 26th Street offices are conducted almost exclusively by one of Eppy’s distributors. There is no indication that Eppy maintains stock, has employees, or conducts any business at this address. Moreover it denies paying rent in connection with such premises. Under these circumstances it is difficult to see how we can sustain the jurisdiction of this court under § 1400 to proceed with an adjudication of the merits of the case in the face of an attack on the venue.

Plaintiff’s reliance in his papers on 28 U.S.C. § 1392(a) is misplaced. That section reads as follows: *491 Though this general language, taken by itself would ordinarily be broad enough to cover the situation at hand, it is a simple maxim of legislative construction that when a general and specific provision (§ 1400) appear together in one statute any inconsistency between the two must be resolved in favor of the specific provision. The Supreme Court has in fact held that venue in infringement actions is to be exclusively determined by § 1400 and that joint defendants residing in different judicial districts cannot be properly joined in one action. Fourco Glass Co. v. Transmirra Products Corp., 1957, 353 U.S. 222, 77 S.Ct. 787, 1 L.Ed.2d 786; Stonite Products Co. v. Melvin Lloyd Co., 1944, 315 U.S. 561, 62 S.Ct. 780, 86 L.Ed. 1026.

*490 “Any civil action, not of a local nature, against defendants residing in different districts in the same State, may be brought in any of such districts.”

*491 The patent venue statute reflects a legislative policy recognizing the technical and intricate nature of patent litigation. Because of the obvious difficulty involved in a court attempting to ascertain from the mass of technical data presented the pertinent and determinative facts, Congress saw fit to narrowly confine the venue provisions applicable to this type action. It was their belief that practicality and convenience are best served when the case is prosecuted where the alleged acts of infringement occurred and where the defendant has a regular and established business. See Ruth v. Eagle-Picher Co., 10 Cir., 1955, 225 F.2d 572, 577. Even assuming arguendo that Eppy was engaged in sufficient activity in the Southern District for purposes of the “doing business” provision of 28 U.S.C. § 1391 his most tenuous connection with his Manhattan office is altogether insufficient to satisfy the “regular and established place of business” criterion in § 1400. See Kamkap, Inc., v. Worldsbest Industries, Inc., D.C.S.D.N.Y.1956, 140 F.Supp. 854.

Plaintiff also contends that its action against Eppy for unfair competition is independently founded on diversity of citizenship and is, therefore, properly brought in this district, § 1400 being inapplicable to common law actions for unfair competition. This being so plaintiff argues that the court can properly retain jurisdiction over related and' similar claims of patent infringement on the principle that once federal jurisdiction over an action is established it is competent for the court to resolve the whole controversy, including those issues for which federal jurisdiction cannot be independently established.

In Dolly Toy Co. v. Bancroft-Rellim Corp., D.C.S.D.N.Y.1951, 97 F.Supp. 531, 536, after finding venue properly laid under § 1400 I noted that even if jurisdiction was doubtful under that section the fact that the first cause of action for copyright infringement was to be retained here would permit the court to retain jurisdiction over the related claim for patent infringement.

Similarly, in Ferguson v. Ford Motor Co., D.C.S.D.N.Y.1948, 77 F.Supp. 425, at page 436, Judge Ryan observed that jurisdiction over an infringing action might be retained solely on the basis of the cause of action charging violation of anti-trust laws.

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Bluebook (online)
156 F. Supp. 489, 115 U.S.P.Q. (BNA) 278, 1957 U.S. Dist. LEXIS 2812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bradford-novelty-co-v-manheim-nysd-1957.