Cedars-Sinai Medical Center v. Revlon, Inc.

111 F.R.D. 24, 231 U.S.P.Q. (BNA) 722, 5 Fed. R. Serv. 3d 681, 1986 U.S. Dist. LEXIS 24310
CourtDistrict Court, D. Delaware
DecidedJune 11, 1986
DocketCiv. A. Nos. 85-178-JLL, 85-699-JLL
StatusPublished
Cited by9 cases

This text of 111 F.R.D. 24 (Cedars-Sinai Medical Center v. Revlon, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Cedars-Sinai Medical Center v. Revlon, Inc., 111 F.R.D. 24, 231 U.S.P.Q. (BNA) 722, 5 Fed. R. Serv. 3d 681, 1986 U.S. Dist. LEXIS 24310 (D. Del. 1986).

Opinion

OPINION

LATCHUM, Senior District Judge.

This Court has been faced with an intricate maze of motions which has taken some time to untangle. This opinion addresses only a small portion of these motions which are, however, of considerable significance to the parties. The plaintiff, Cedars-Sinai Medical Center (“Cedars-Sinai”), a California corporation, has filed two actions in this Court. The first action (“C.A. No. 85-178”) was filed on March 21, 1985 against two defendants, Revlon, Inc. (“Revlon”), and Armour Pharmaceutical Company (“Armour”), both Delaware corporations. In that complaint, Cedars-Sinai alleges infringement by those defendants of its Patent No. 4,456,590 (“the ’590 patent”) in which it claims a method of eliminating hepatitis-carrying microorganisms from a lyophilized, or “freeze-dried,” bloodclotting agent through heat treatment, and requests injunctive relief and damages.. (Docket Item [“D.I.”] 1, 117 [C.A. No. 85-178].) In the second action, filed on December 3, 1985, Cedars-Sinai alleges infringement of a closely related patent, Patent No. 4,556,558 (“the ’558 patent”) against two additional defendants, Rorer Group, Inc. (“Rorer”), a Pennsylvania corporation, and Pantry Pride, Inc. (“Pantry Pride”), a Delaware corporation, in addition to Revlon and Arm[26]*26our, the defendants in the original suit.1 (D.I. 1 [C.A. No. 85-699].) In the midst of a flurry of various discovery and sundry other motions, the Court will simultaneously dispose of two of the plaintiffs motions, which are logically intertwined with one another. The plaintiff has moved this Court to grant a jury demand on all issues in C.A. No. 85-178, the first suit (D.I. 67), the resolution of which will dispose of the motion of the defendants Armour and Revlon to strike the plaintiffs demand for a jury trial. (D.I. 61.) Second, the plaintiff has moved this Court to consolidate the two actions for a joint trial. (D.I.’s 71; 7.)

I. FACTUAL BACKGROUND

On March 21, 1985, Cedars-Sinai, which provides medical services and conducts research and development, filed a complaint for injunctive relief and damages in this Court alleging infringement of the '590 patent. (D.I. 1, 117.)2 The complaint did not demand a jury trial.

In their original answers, dated April 15, 1985, the defendants Revlon and Armour offered the following affirmative defense:

In filing and amending the patent applications ultimately resulting in said United States Letters Patent No. 4,456,590, plaintiff, on information and belief, did not exercise that degree of candor and full disclosure required of it in proceedings before the United States Patent and Trademark Office, such that said patent is invalid and unenforceable by reason thereof.

(D.I.’s 5 & 6, U 10.) In its counterclaim (attached to its answer), Armour requested the Court to declare the ‘590 patent invalid, void, unenforceable, and not infringed by the defendant. (D.I. 5, 111.)

On April 30, 1985, the plaintiff filed a reply to Armour’s counterclaim. (D.I. 14.) In paragraph 6, the plaintiff recited the fact that it had moved to strike paragraph 10 of the defendants’ answers and counterclaim. (Id. at U 6.) On May 6, 1985, the plaintiff filed its motion for an order striking paragraph 10 of Revlon’s answer and paragraph 10 of Armour’s answer and counterclaim on the grounds that the defendants had failed as a matter of law to allege fraud on the Patent Office with the particularity required by Fed.R.Civ.P. 9(b). (D.I. 15.) In its brief on this issue, Cedars-Sinai contended that the defendants’ assertion of fraud was conclusory and did not meet the standards of particularity in the case law. (D.I. 13 at 5.) Specifically, the defendants’ averments “fail(ed) to state any facts underlying their assertion of fraud on the Patent Office.” (Id. at 6.)

In response to the plaintiff’s claim that the defendants’ answer and counterclaim, paragraph 10, did not meet the particularity requirements of Fed.R.Civ.P. 9(b), the two defendants moved to amend their answers. (D.I. 17.) After receiving considerable argument from both sides, both by written brief and by oral argument, the Court granted the defendants’ motion to amend their answers. (D.I. 41.) Para[27]*27graph 10 of the amended answers reads as follows:

10. In filing and amending the patent applications ultimately resulting in said United States Letters Patent No. 4,456,-590, plaintiff did not exercise that degree of candor and full disclosure required of it in proceedings before the United States Patent and Trademark Office, such that said patent is invalid and unenforceable by reason thereof; in that plaintiff failed to disclose to the patent examiners pertinent information, known to it, that other workers in the field of the alleged invention, including William R. Thomas of Baxter-Travenol, Laboratories, Inc., previously or contemporaneously had discovered independently the central concept of the patent claims which plaintiff alleged to be lacking in the prior art, namely, that the viability of a heat-labile blood plasma fraction hosting a hepatitis virus can be maintained during the application of virus-eliminating heat; and further in that plaintiff is presenting arguments to the patent examiner misrepresented the teachings of the prior art, including the teachings of the 1969 Rosenberg, et al. publication of record.

(D.I. 17.)3

The plaintiffs on September 23, 1985, ten days following the filing of these amended answers, for the first time filed a demand for a jury trial as to all issues in this case. (D.I. 49.) The defendants countered this motion with a motion to strike the plaintiffs demand for a jury trial on the ground that the plaintiff had waived any right to a trial by jury by its failure to serve a timely demand in conformity with Fed.R.Civ.P. 38(b) and 38(d). (D.I. 61.) Plaintiff filed its motion for an order granting a jury trial on November 22, 1985. (D.I. 67.)

On November 5, 1985, Pantry Pride and Revlon entered into a merger agreement, effective on December 26, 1985, in which Revlon became a wholly owned subsidiary of intermediate subsidiaries of Pantry Pride. Armour continued to be a wholly owned subsidiary of Revlon. On November 27, 1985, Pantry Pride and Rorer entered into an agreement which provided that Pantry Pride would sell or cause to be sold to Rorer certain of Revlon’s pharmaceuticals operations. The sale of Armour to Rorer took place on January 7, 1986.

In the midst of these transactions, the plaintiff filed a complaint on December 3, 1985 in C.A. No. 85-699 against the same defendants named in C.A. No. 85-178 but also including additional defendants, Rorer and Pantry Pride, alleging that the defendants had infringed the ’558 patent.4 The plaintiff further alleged that the agreement of Pantry Pride to sell Armour to Rorer created a threatened infringement of the ’558 patent by Rorer. The plaintiff therefore sought relief under the Declaratory Judgments Act, 28 U.S.C. § 2201.

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111 F.R.D. 24, 231 U.S.P.Q. (BNA) 722, 5 Fed. R. Serv. 3d 681, 1986 U.S. Dist. LEXIS 24310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cedars-sinai-medical-center-v-revlon-inc-ded-1986.