Carter Products, Inc. v. Colgate-Palmolive Co.

151 F. Supp. 427, 113 U.S.P.Q. (BNA) 317, 1957 U.S. Dist. LEXIS 3560
CourtDistrict Court, D. Maryland
DecidedMay 9, 1957
DocketCiv. No. 6924
StatusPublished
Cited by2 cases

This text of 151 F. Supp. 427 (Carter Products, Inc. v. Colgate-Palmolive Co.) 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
Carter Products, Inc. v. Colgate-Palmolive Co., 151 F. Supp. 427, 113 U.S.P.Q. (BNA) 317, 1957 U.S. Dist. LEXIS 3560 (D. Md. 1957).

Opinion

THOMSEN, Chief Judge.

Defendant Colgate has moved to “clarify arid amplify” the decree entered herein by Judge Coleman and affirmed by the Court of Appeals, 4 Cir., 230 F.2d 855, by changing the accounting period for damages and profits which was specified in paragraph 14 of the decree and in the opinion and mandate of the Court of Appeals. For Judge Coleman’s opinion see D. C., 130 F.Supp. 557.

The complaint charged patent infringement and appropriation of trade secrets relating to a pressurized shaving cream. After a long trial, Judge Coleman held the patent valid, enjoined infringement thereof, enjoined the use of trade secrets wrongfully appropriated by Colgate, ordered Colgate to assign to plaintiffs certain rights under patent applications, and referred the case to a special master to determine and report on the damages resulting from infringement and the damages and profits for which Colgate should be required to account because of its. misappropriation of plaintiffs’ trade secrets. The question whether increased damages should be. awarded ■was reserved for future determination.

' Paragraph 14 of the decree provided that plaintiffs have and recover from Colgate any damages which plaintiffs have suffered and any profits which Colgate has made by reason of Colgate’s misappropriation of plaintiffs' trade secrets; “that the accounting period begin on the date when Colgate first ;went on the market with its product ‘Rapid-Shave’ up to and including, the date of the last sale of any of its pressurized shaving lather products embodying the trade secret specified in paragraph No. 12(c) above; as to those products embracing only the trade secrets specified in paragraphs No. 12(a) and No. 12(b) above, the accounting period shall terminate as of the date •of issuance of said patent, and the accounting will embrace all pressurized shaving lather products produced by Colgate during said period embracing any one or all of said trade secrets * *

Three principal questions were presented by the appeal to the Fourth Circuit: “(1) Is the patent valid? (2) Should the findings of the trial court as to misappropriation of trade secrets be sustained? And (3) Is the decree proper?”. 230 F.2d at page 857.

The Fourth Circuit affirmed the decree in an opinion by Chief Judge Parker, in which he said, inter alia: “Decree was properly entered enjoining infringement of the patent and awarding damages because of infringement, and, as to Colgate, awarding damages from the time that this defendant began using the trade secrets which it hád obtained by the employment of Fine.” 230 F.2d at page 865. Paragraph 14 of Judge Coleman’s decree.was incorporated verbatim in the mandate of the Court of Appeals.

Despite the clarity of these rulings, Colgate seeks an order: (1) specifying that the calculation of profits and/or damages with respect to the matter of trade secret appropriation proceed in accordance with the law of New Jersey; (2) specifying that plaintiffs may not recover profits and damages prior to the receipt of actual notice on the part of Colgate that it was in fact using a trade secret thereafter found' to be the property of plaintiffs; (3) determining that no such notice was received by Colgate prior to the initiation of this action; and (4) referring to the special master the determination of when, after the comriiencement of the action, Colgate received such notice.

The first problem is whether this court has . any. power to consider the [429]*429questions raised by the motion, in view of the mandate and opinion of the Court of Appeals. The general rule is that where a question involved in a case has been determined by an appellate court, its decision Becomes the law of the case and controls the lower court in any subsequent trial thereof. Baltimore & O. R. Co. v. Deneen, 4 Cir., 167 F.2d 799. “Every question of law or fact which was before the Circuit Court of Appeals and decided by their opinions was thereby conclusively settled for this court upon the subsequent proceedings. The matters not decided on those appeals are open for consideration here; but, so far as questions of fact or law were specifically decided, this court is not at liberty to re-examine any such decided matters, but must proceed in conformity to the mandate as interpreted by the opinions of the reviewing court.” William Wrigley, Jr., Co. v. L. P. Larson, Jr., Co., D.C. W.D.Ill., 5 F.2d 731, 735, affirmed 7 Cir., 20 F.2d 830, reversed on another point, 277 U.S. 97, 48 S.Ct. 449, 72 L.Ed. 800.

Colgate argues that Judge Coleman’s decree was interlocutory so far as the trade secret issue was concerned; that 28 U.S.C. § 1292 makes no provision for interlocutory appeals in actions for trade secret appropriation; that the sole bases of appellate jurisdiction were (1) that this is a patent case, and (2) that the court had ordered the issuance of an injunction with respect to trade secret appropriation; and that “there was no statutory basis whatsoever for any consideration on the part of the Court of Appeals as to the extent of defendant Colgate’s liability for damages”. Colgate relies on Loew’s Drive-in Theatres v. Park-In Theatres, 1 Cir., 174 F.2d 547, and A. D. Howe Mach. Co. v. Dayton, 4 Cir., 210 F. 801. Those cases, however, are distinguishable from the case at bar. In Loew’s, an action for unpaid royalties was joined in the same complaint with an action for patent infringement. The separate opinions of Judge Woodbury and Judge Magruder both recognized that the two causes of action were separate and distinct; the one was not in any proper sense ancillary to the other. In the instant case, the claim based on the misappropriation of trade secrets was joined with the substantial and related claim under the patent laws, as permitted by 28 U.S.C. § 1338(b). Howe was a patent case, in which the appeal from the interlocutory decree was taken under old sec. 129 of the Judicial Code, quoted in 210 F. at page 803. The court said, 210 F. at page 805: “While the decree of the lower court *, * * ordered a reference for an accounting, * * * those matters were not argued, and from that portion of the decree standing by itself no appeal could, have been taken at that stage of the proceedings. So clearly was this understood that this court did not consider the same or undertake to pass upon any question other than 'the action of the lower court in holding that the patent was valid and had been infringed and as to granting the injunction.”

In the instant case, the facts and law with respect to misappropriation of trade secrets had to be considered by the Court ■of Appeals in determining the propriety of the. injunction.

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Related

Carter Products, Inc. v. Colgate-Palmolive Company
214 F. Supp. 383 (D. Maryland, 1963)
Carter Products, Inc. v. Colgate-Palmolive Co.
164 F. Supp. 503 (D. Maryland, 1958)

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Bluebook (online)
151 F. Supp. 427, 113 U.S.P.Q. (BNA) 317, 1957 U.S. Dist. LEXIS 3560, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-products-inc-v-colgate-palmolive-co-mdd-1957.