Buckley v. Airshield Corp.

977 F. Supp. 375, 44 U.S.P.Q. 2d (BNA) 1268, 1997 U.S. Dist. LEXIS 13843, 1997 WL 574830
CourtDistrict Court, D. Maryland
DecidedAugust 27, 1997
DocketCivil Action AW-95-1481
StatusPublished
Cited by5 cases

This text of 977 F. Supp. 375 (Buckley v. Airshield Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Buckley v. Airshield Corp., 977 F. Supp. 375, 44 U.S.P.Q. 2d (BNA) 1268, 1997 U.S. Dist. LEXIS 13843, 1997 WL 574830 (D. Md. 1997).

Opinion

MEMORANDUM OPINION

WILLIAMS, District Judge.

Pending before the Court are Plaintiffs Motion for Partial Summary Judgment on Validity, Enforceability, and Defendants’ Infringement of U.S. Patent No. 4,245,862 Based Upon Judicial Estoppel and Res Judicata; Defendants’ Motion for Claim Interpretation; and Defendants’ Motion for Partial Summary Judgment of Invalidity of Claims 1-15 of. U.S. Patent No. 4,245,862 as Being Indefinite Under 35 U.S.C. § 112. A hearing on these Motions was held on April 25, 1997, and the Court took these matters under advisement. For the reasons set forth below, the Court will grant Plaintiffs Motion and will deny Defendants’ Motions.

Background

The device at issue in this case is a “Drag Reducer for Land Vehicles,” United States Patent No. 4.245,862 (“the ’862 patent”). Plaintiff, who conceived of the device, filed his original patent application on February 19, 1976, as serial no. 659,517. Claims 1-7 of that application were rejected by the Patent Office, as was the continuation-in-part application which Plaintiff filed in response. Following this rejection, Plaintiff filed a final patent application, which was ultimately approved. Pursuant to this approval, the Patent Office issued the ’862 patent to Plaintiff.

Plaintiff entered into an agreement with Rudkin-Wiley, a manufacturer of drag reduction devices for trucks, under which Rudkin-Wiley became the exclusive licensee of the ’862 patent upon the patent’s issuance. Between October and November of 1985, Rudkin-Wiley filed four lawsuits for infringement of the ’862 Patent in federal district courts. In December 1985, Buckley and Rudkin-Wiley agreed that Buckley would join Rudkin-Wiley as a co-plaintiff in.these actions. The litigation in three of these cases continued until 1991, with Airshield USA acting as the successor to Rudkin-Wiley in the suits, pursuant to a 1989 agreement among the parties. One of these cases, Rudkin-Wiley Corp. v. Fibertec, Inc., Civil Action No. 85-0929, in the United States District Court, for- the District of Nebraska (“the Fibertec action”), will be discussed at *377 greater length in this Opinion’s analysis of Plaintiffs Motion for Summary Judgment.

On August 20, 1991, Plaintiff terminated Defendant’s exclusive license, citing failure to make timely payments of royalties and other funds due to Buckley under the -licensing agreement. Plaintiff brought the present action on May 17, 1995. In Count I of the Amended Complaint, Buckley alleges that Defendants are manufacturing, using, or selling truck fairings which infringe the ’862 patent. Count II alleges that Airshield USA breached its licensing agreement, and Counts III-VI allege various tort causes of action against Defendants. Defendants have denied infringing the ’862 patent and have argued that the patent is invalid and unenforceable. Pursuant to this,- each Defendant has filed a counterclaim seeking a declaratory judgment that the ’862 patent has not been infringed and is invalid.

Discussion

I. Plaintiffs Motion for Summary Judgment

Summary Judgment Principles

Summary judgment is appropriate where there is no genuine issue of material fact and, where the parties are entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). “Summary judgment procedure is properly regarded not as a disfavored procedural shortcut, but rather as an integral part of .the Federal Rules as a whole, which are designed to secure the just, speedy and inexpensive determination of every action.” Id. at 327, 106 S.Ct. at 2555 (citations omitted). See also Bland v. Norfolk & Southern Railroad Co., 406 F.2d 863 (4th Cir.1969).

In determining whether genuine and material factual disputes exist, resolution of which requires trial, the Court has reviewed the parties’ respective memoranda, construing all facts, and all reasonable inferences drawn therefrom, in the light most favorable to the Defendants. Matsushita Electrical Industrial Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986). Applying these principles to the case, the Court will deny Plaintiff’s Motion for Summary Judgment.

Plaintiffs Motion is brought under the doctrines of judicial estoppel and res judicata. Plaintiff argues that Fibertec, Airshield USA, and Airshield Canada should be barred from untesting the validity, enforceability or infringement of the ’862 patent based on res judicata. Plaintiff notes that the consent judgment in the Fibertec Action acknowledged the validity and enforceability of the ’862 patent and acknowledged that the patent was infringed by certain products manufactured or sold by Fibertec. RudkinWiley, Buckley and Fibertec were all named parties in this Consent Judgment, which stated:

IT IS HEREBY ORDERED AND ADJUDGED THAT:....
2. United States Letters' Patent No. 4,245,862 of Frank T. Buckley, Jr., entitled “Drag Reducer for Land Vehicles,” is valid and enforceable, and has been infringed by defendant’s manufacture and/or sale of the products accused of infringement in this action.

See PlaintifPs. Exhibit 7, Speranza Deel. Plaintiff notes that not all of the fairings that Plaintiff alleges to be infringing in the immediate action were addressed by the Fibertec action’s Consent Judgment. Plaintiff specifically states that this Motion “is only seeking a partial summary judgment of infringement as to. those Fibertec fairings previously adjudicated as infringing the ’862 Patent.” Plaintiffs Memorandum in Support of Motion- at 26, ft. 17.

Case law in the Fourth Circuit and elsewhere clearly holds that a consent judgment which provides that a patent is valid and infringed is res judicata, and that such a judgment bars the parties to the judgment, or their privies, from relitigatirig validity, enforceability, or infringement in subsequent legal proceedings. Swan Carburetor Co. v. Nash Motors Co., 25 F.Supp. 21, 22-23 (D.Md.), aff'd, 98 F.2d 115 (4th Cir.1938). Other Circuits have adopted similar rules. See Interdynamics, Inc. v. Firma Wolf, 653 F.2d 93, 97 (3d Cir.), cert. denied 454 U.S. *378 1092, 102 S.Ct. 658, 70 L.Ed.2d 631 (1981); American Equip. Corp. v. Wikomi Mfg. Co.,

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977 F. Supp. 375, 44 U.S.P.Q. 2d (BNA) 1268, 1997 U.S. Dist. LEXIS 13843, 1997 WL 574830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/buckley-v-airshield-corp-mdd-1997.