Bros Inc. v. W. E. Grace Manufacturing Co.

351 F.2d 208, 147 U.S.P.Q. (BNA) 1
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 14, 1965
DocketNo. 21470
StatusPublished
Cited by13 cases

This text of 351 F.2d 208 (Bros Inc. v. W. E. Grace Manufacturing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bros Inc. v. W. E. Grace Manufacturing Co., 351 F.2d 208, 147 U.S.P.Q. (BNA) 1 (5th Cir. 1965).

Opinion

JOHN R. BROWN, Circuit Judge:

Now rounding out its first decade in this Court, this ease, coming to us for the fourth time with two intervening trips to the 6th Circuit and one to the 8th1 is a tribute to “the ant-like persistence of [patent] solicitors,” Lyon v. Boh, S.D.N.Y., 1924,1 F.2d 48, 50, and their court[210]*210room advocate counterparts as so much grist is made out of one patent.2

Hopefully, this visit will achieve an end to this case, in this Court at least, although we fear that our decision is a prologue to another act since on a vital point of substantive patent law, we find ourselves in disagreement3 with our distinguished Brothers of the Eighth Circuit.4

The stage for this scene may be quickly set. In our 1963 decision (Op. [9]) we modified and affirmed infringement damages but remanded the case for determination of F.R.Civ.P. 60(b) relief based on an asserted § 102(b) prior publication of the Road Show pamphlet-brochure allegedly describing the patented earth compactor. The District Court on the remand found 60(b) relief warranted thereby releasing Fifth Circuit Courts from the binding res judicata effect of the Ohio judgments (Op. [1], [4], [5] and [7]). On the merits, it held, as did the 8th Circuit (Op. [8] and [6]) that the publication disclosed the invention to invoke the absolute bar of § 102(b), 35 U.S.C.A. § 102(b). We uphold the Trial Judge as to 60(b) but reverse as to § 102(b) thereby reinstating the judgment upholding validity, infringment and the award of damages.

The 60(b) Relief

We sent the case back to determine whether the celebrated brochure (described in Op. [8] 415) was in fact published at or before the July 1948 Chicago Road Show and, if so, whether circumstances of earlier non-disclosure or concealment of such fact satisfied requisite equitable consideration warranting 60(b) relief. The Patentee was implicated directly in this since its manager, Williamson (also a co-patentee), in the June 23, 1959 affidavit opposing reopening of the case by the Sixth Circuit, swore (Par. 7) positively that such brochure “was not prepared or distributed by [Patentee] until long after said roadshow.”

Where in the 8th Circuit appeal the finding of 1948 publication was not attacked (Op. [8] 415), the fact has now been irrefutably established as a fact. In the course of November 1963 pre-trial discovery for the 60(b) hearing then fixed for December 16, 1963, there was extensive inquiry both as to what had been discovered as to when the brochure had been published and, also, the nature and scope of the search. The evidence detailed the unsuccessful efforts conducted on a dual front under the direction of Williamson and the comptroller in 1959 in preparation of the Minnesota [211]*211trial (Op. [6]) where the § 102(b) issue was timely and directly raised for the first time. The upshot of that investigation was that no record, accounting or otherwise, could then be located showing the time of printing or even the identity of the printer. With our 1963 remand (Op. [9] 601-602, 605, 609-611) again focusing attention on it, the top owner-management of Patentee, naturally alarmed at the increasing use of opprobrious descriptives charging conscious misconduct, renewed the efforts with vigor through the new comptroller, Mo-berg, who had since replaced his less competent predecessor. He uncovered in a loft two bundles of old discarded bookkeeping cash disbursement journals, one of 212 pages, the other of 552. Study of these revealed 36 references to printers or advertising agencies, including an item of $178.30 with the Gile Letter Service which was verified through checking of the Invoice Register. Although Patentee had done no business with Giles since 1952, Moberg, going to Giles’ office, located a Kardex accounts receivable card which showed an entry “50 ton compactor” for the invoice payment of $178.30. It was now certain that the brochure had indeed been printed and distributed not later than July 1948. Patentee’s counsel immediately notified Infringer’s counsel of the fact which at every stage thereafter it formally and unequivocally acknowledged.

Out of the Patentee’s records, the Williamson June 23, 1959 affidavit was therefore proved to be incorrect. It was untrue. But was it something more? Deliberate? Knowingly false? Although this record details other circumstances which raise questions why the fact was not earlier uncovered, we think the record as a whole, F.R.Civ.P. 52(a), does not warrant the Trial Judge characterizing this affidavit as a “false statement” and “manifestly untrue and knowingly [so] made.” It may have been given too hastily as a response to the efforts to reopen the 6th Circuit decision (Op. [4]) and perhaps too much reliance was put on the earlier escape clause in Par. 3 of the affidavit that “the following information * * * is true to the best of my knowledge and belief.” But we do not think it shows a deliberate evil purpose to misstate or conceal or thereafter engage in foot-dragging lest the truth might be uncovered.

But this does not alter granting 60(b) relief. Because of the unique factors of this case and this type of public interest litigation which we previously discussed at length (Op. [9] 609-611) 60(b) relief was justified, if not compelled. Stated with such positiveness, the affidavit, accompanied by strong memorandum briefs (see Op. [9] 603-605) undoubtedly had a decisive impact on the 6th Circuit. The 6th Circuit’s reliance on its literal truth closed the door there, and by res judicata here. The effect was the same whether there was evil, innocent or careless, purpose. In either event it was the action of the party taken while the case was still “alive” and when had the truth now revealed been disclosed quite a different result might have come about.

Expunging now the aspersions of purposeful misconduct, we are nonetheless certain that the broad reach of 60(b) reaches this far. The Judge was correct, therefore, in granting 60(b) relief to introduce belatedly, but permissibly, the new defense of § 102(b) prior publication.

§ 102(b) Prior Publication

In the Eighth Circuit case, Judge Nordbye held that the brochure sufficiently disclosed the invention (Op. [6]) and applied the bar of § 102(b).5 The Eighth Circuit affirmed largely on the ground, as we read its opinion, that this was a question of fact (Op. [8] 416) as generally identity is. See Bischoff v. Wethered, 1869, 19 Wall. 812, 814, 76 [212]*212U.S. 812, 814, 19 L.Ed. 829; Southern Implement Mfg. Co., Inc. and George Partin v. McLemore, 5 Cir., 1965, 350 F.2d 244. While highly persuasive on principles of stare decisis, the Eighth Circuit’s decision does not eliminate our judicial travail since we have the duty of reaching our own independent decision on the merits of the case as between these parties and on this record, Pierce v. Aeronautical Communications Equipment, Inc., 5 Cir., 1962, 307 F.2d 790, even though as it did there, this brings about diametrically opposed decisions on validity of .the same patent against the same attack. And the Patentee urges, successfully it turns out, that there is a critical difference in this record in the form of expert opinion testimony with accompanying charts demonstrating element by element the deficiency in the brochure disclosure of the claimed invention.

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