Clair v. Kastar, Inc.

138 F.2d 828, 59 U.S.P.Q. (BNA) 312, 1943 U.S. App. LEXIS 2682
CourtCourt of Appeals for the Second Circuit
DecidedNovember 5, 1943
DocketNo. 128
StatusPublished
Cited by11 cases

This text of 138 F.2d 828 (Clair v. Kastar, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clair v. Kastar, Inc., 138 F.2d 828, 59 U.S.P.Q. (BNA) 312, 1943 U.S. App. LEXIS 2682 (2d Cir. 1943).

Opinion

L. HAND, Circuit Judge.

The defendant appeals from a summary judgment, awarding damages and profits to the plaintiffs for the infringement of claim two of an expired patent for a “steering stabilizer” on motor-cars — No. 1,577,821 issued on March 23, 1926, to William P. Campbell — and dismissing a counterclaim for infringement by the plaintiffs of Patent [829]*829No. 1,993,572, issued on March 5, 1935, to Louis Stark, also for such a “stabilizer.” On April 10, 1933, the plaintiffs who then, as now, were owners of the Campbell patent, sued a corporation, known as the Western Auto Supply Company, in the District Court for the Western District of Missouri, for the infringement of all the three claims of that patent; and on December 20, 1937, Judge Collet declared the claims invalid for want of invention; but held valid and infringed another patent on which the plaintiffs had sued in the same action. Both parties appealed to the Circuit Court of Appeals for the Eighth Circuit, but settled their controversies before the cause came on for argument, and the appeals were dismissed by consent on April 19, 1939. The defendant at bar was not a party to that action, nor did it undertake its defence. Shortly thereafter, the plaintiffs began two other actions in the same court against customers of the defendant; again upon all three claims of the Campbell patent: on June 29, 1939, against Sears, Roebuck & Co.; on July 10, 1939, against Montgomery Ward & Co. The defendant intervened in these and openly undertook and carried through the defence of both; they were consolidated, and it will be convenient to speak of them as one. During its prosecution the plaintiffs withdrew claims one and three, leaving in suit only claim two, which Judge Otis held valid and infringed on February 18, 1941. The defendant appealed from this judgment to the Circuit Court of Appeals, but without success and the mandate of affirmance went down on January 26, 1942. The present action — once more upon all three claims of the Campbell patent — was filed on January 5th, 1943. The District Judge held that Judge Otis’s judgment was res judicata as to the validity of claim two and as to the defences of fraud and laches which the defendant pleaded in this action; but, since the patent had expired, he directed only an accounting. He did not discuss the issue of disclaimer on which the defendant also now relies, because the answer had not pleaded it; but after his opinion went down, the defendant moved for a reargument upon the ground that the plaintiffs had never disclaimed claims one or three, although over eleven months had passed between the decision of the Eighth Circuit in the action before Judge Otis, and the filing of the action at bar. The judge granted the reargument but adhered to his former opinion.

The defendant concedes, and must concede, that after the dismissal of the appeal in the action against the Western Auto Supply Company, the plaintiffs need not have disclaimed; indeed they could not have done so, for they had nothing to disclaim. All three claims having been declared invalid, nothing was left to save, and the statute, 35 U.S.C.A. § 65, provides that the patentee’s “patent shall be valid for all that part which is truly and justly his own.” As was their right, they therefore again declared upon all three claims in the action before Judge Otis. The first question is whether they are bound to disclaim claims one and three within a reasonable time after they had withdrawn them in that action. If they were, they can plausibly argue that the defendant should have pleaded their neglect to do so as a defence in the action before Judge Otis; and that, having failed to do so, it was es-topped by that judgment which was conclusive, not only as to what it actually decided, but as to whatever else it might have decided. That would depend upon whether the action at bar is upon the same “claim,” or “cause of action,” as the action before Judge Otis, a question not free from uncertainty. We need not decide it, because even if it is upon the same “cause of action,” the plaintiffs’ withdrawal of claims one and three did not impose upon them the duty to disclaim, and their neglect to do so could not have been pleaded in bar. Judge Collet’s judgment that claim two was invalid still remained the last word; the withdrawal of claims one and three in no sense made its validity more probable; and the plaintiffs were no more bound to disclaim than they had been before they filed the action before Judge Ot is. Their duty to disclaim could not arise at the earliest until the Eighth Circuit affirmed Judge Otis’s judgment, or perhaps not until a reasonable period after the defendant's time had expired to apply for certiorari.

But, although, for the reasons just given, the plaintiffs were under no duty to disclaim until the action before Judge Otis had come completely to an end, that duty may then have arisen, and their neglect to discharge it have invalidated the Campbell patent. This follows from Ensten v. Simon Ascher & Co., 282 U.S. 445, 51 S.Ct. 207, 75 L.Ed. 453. In that case the District Court had held several claims of a patent valid and one claim invalid. An appeal lay to the Circuit Court of Appeals from each part of the decree, and the defendant [830]*830did appeal, but the plaintiff did not. After the judgment of the District Court had been affirmed, the defendant moved to dismiss the action on the ground that the plaintiff should have disclaimed the claim which the District Court had held invalid, within a reasonable time after the Circuit Court of Appeals had held the other claims valid. The argument was that, since it then appeared that part of the patent was valid and part invalid, the situation covered by the statute at once arose. This we had held (Ensten v. Simon Ascher & Co., 38 F.2d 71), following Hoe & Co. v. Goss Printing Co., 2 Cir., 31 F.2d 565, and the Supreme Court affirmed our ’decree. We had earlier held in Page Mach. Co. v. Dow, Jones & Co., 2 Cir., 168 F. 703, that a patentee need not disclaim claims which had been declared invalid by the District Court, after the af-firmance by the Circuit Court of Appeals of a holding in the same action that other claims of the same patent were valid. En-sten v. Simon Ascher & Co., supra, 282 U.S. 445, 51 S.Ct. 207, 75 L.Ed. 453, overruled that decision, though — as we had pointed out in Hoe & Co. v. Goss Printing Co., supra, 2 Cir., 31 F.2d 565 — only because the patentee, by a change in the law, had then become able to appeal from that part of the decree which held any of his claims invalid.

Thus, if a patentee has had an opportunity to review a decision holding some claims of his patent invalid and some valid, and if he fails to avail himself of that opportunity, he must disclaim the claims held invalid within a reasonable time after the appellate court affirms so much of the judgment as holds any of the claims valid. Although it cannot be known until then that any part of the patent is valid and although not until then does the duty arise (Triplett v. Lowell, 297 U.S. 638, 56 S.Ct. 645, 80 L.Ed. 949), then it does arise, and he delays any longer at the peril of losing his whole patent.

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Bluebook (online)
138 F.2d 828, 59 U.S.P.Q. (BNA) 312, 1943 U.S. App. LEXIS 2682, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clair-v-kastar-inc-ca2-1943.