Clair v. Kastar, Inc.

58 F. Supp. 378, 63 U.S.P.Q. (BNA) 200, 1944 U.S. Dist. LEXIS 1719
CourtDistrict Court, S.D. New York
DecidedOctober 31, 1944
StatusPublished
Cited by2 cases

This text of 58 F. Supp. 378 (Clair v. Kastar, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York 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., 58 F. Supp. 378, 63 U.S.P.Q. (BNA) 200, 1944 U.S. Dist. LEXIS 1719 (S.D.N.Y. 1944).

Opinion

LEIBELL, District Judge.

Plaintiffs brought this suit for infringement of all three claims of the Campbell patent, No. 1,577,821, issued March 23, 1926. The action was “commenced” by the filing of the complaint in the office of the Clerk of this Court on December 30, 1942, according to Rule 3, Federal Rules of Civil Procedure, 28 U.S.C.A. following section 723c. Process was served January 5, 1943. The Campbell patent was for a stabilizing device to be applied to the steering mechanism of an automobile, at the steering rod and axle, to prevent “shimmying”, i. e., wobbling of the front wheels. The defendant answered, pleading special defenses, including laches and fraud, and also a counterclaim, based upon plaintiffs’ alleged infringement of the Stark patent No. 1,993,-572, issued March 5, 1935, owned by defendant.

The Campbell patent was involved in litigation, instituted in the United States District Court, Western District of Missouri, April 10, 1933, in a suit for infringement brought by these plaintiffs against the Western Auto Supply Co. The case was tried before Judge Collet more than four years later, and on December 9th, 1937, he decided that all three claims of the Campbell patent were invalid for lack of invention. At the same time he held that another patent owned by plaintiffs (the Dyer patent, No. 1,317,912, issued October 7, 1919) was valid and infringed, “particularly the first claim thereof”. While cross appeals were pending, that litigation was settled and the appeals were dismissed on stipulation, by the Circuit, Court of Appeals, Eighth Circuit, on April 12, 1939.

Then followed two suits by plaintiffs, also on the Dyer and Campbell patents (all 3 claims), against Sears Roebuck & Co. on June 29, 1939, and against Montgomery Ward & Co. on July 10, 1939, in the District Court of the United States, Western District of Missouri. The suits were tried before Judge Otis. Prior to the trial thereof the plaintiff in a bill of particulars limited its cause of action to claim 2 of the Campbell patent and claim 1 of the Dyer patent, thus withdrawing claims 1 and 3 of the Campbell patent. Judge Otis, 36 F.Supp. 664, decided that claim 1 of the Dyer patent and claim 2 of the Campbell patent were valid and infringed by the stabilizers sold by the defendants, Sears, Roebuck & Co. and Montgomery Ward & Co., which were models Nos. 73 and 74 manufactured by the present defendant, Kastar, Incorporated. In fact the present defendant undertook the defense of those two suits. A decree was entered February 18, 1941. The Circuit Court of Appeals for the Eighth Circuit affirmed Judge Otis January 26, 1942, 123 F.2d 878, as to claim 2 of the Campbell patent and reversed him as to claim 1 of the Dyer patent. No further appeal was taken. However an application was made in June, 1942, to that appellate court for an order to compel the District Court to carry out its mandate, but that application was dismissed June 26, 1942. Thus all the Midwestern litigation involving the Campbell patent had ended some time prior to the commencement of the present suit on December 30, 1942.

In the suit in this Court plaintiffs moved on February 23, 1943, for a summary judgment on the ground that the issues, except as to damages, were res judicata, and also asked that defendant’s counterclaim be dismissed as improper. The defendant made a cross motion to dismiss the complaint on the ground that the Campbell patent was void because plaintiffs had not timely disclaimed claims 1 and 3 thereof. The District Judge, 51 F.Supp. 207, denied defendant’s motion and held that claim 2 and its infringement had been judicially determined by Judge Otis in the two suits tried before him and that his decision was res judicata. Appeals were taken. In discussing the basis for the decision of the District Judge in this District, on plaintiffs’ said motion, Judge Learned Hand of our Circuit Court of Appeals wrote (2 Cir., 138 F.2d 828, 829) : “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 [380]*380in the action before Judge Otis, and the filing of the action at bar. The judge granted the reargument but adhered to his former opinion.”

Judge Learned Hand’s opinion discussed the question of disclaimer and when the duty to disclaim arose in respect to claims 1 and 3 of the Campbell patent. I quote the following from his opinion: “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. The duty of the plaintiffs at bar to disclaim therefore depended upon whether they could have obtained .a review of Judge Collet’s ruling upon claims one and three in the action before Judge Otis. Although they had alleged that the defendants in that action infringed those claims as - well as claim two, that did not indeed conclude them; but, if the same ‘stabilizers’ which were found to infringe claim two, did in fact infringe claims one or three, they withdrew either of those claims at their peril. It was their last chance to save them. Whether the ‘stabilizers’ did infringe either claim one or three was not tried in the motion for summary judgment, and could scarcely have been properly so tried. Although the judgment must therefore be reversed, the issue must be tried whether the ‘stabilizers’ infringed either of those claims; or, what is in effect the same thing, whether there was any substantial difference between either of them and claim two. Maytag Co. v. Hurley Machine Co., 307 U.S. 243, 59 S.Ct. 857, 83 L.Ed. 1264.

The Circuit Court of Appeals also referred to this trial court the issues involved in the defences of fraud and laches, and the propriety of the defendant’s counterclaim under the Stark patent. On the retrial before me the defendant withdrew its counterclaim, and the defense based on alleged fraud, which had little merit. On the issue of laches defendant offered some evidence. It did not differ very much from that offered before Judge Otis. I dismissed the defense of laches. That left only the issues involved in the defense based on plaintiffs’ failure to disclaim claims 1 and 3 of the Campbell patent.

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Related

Clair v. Kastar, Inc.
70 F. Supp. 484 (S.D. New York, 1946)

Cite This Page — Counsel Stack

Bluebook (online)
58 F. Supp. 378, 63 U.S.P.Q. (BNA) 200, 1944 U.S. Dist. LEXIS 1719, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clair-v-kastar-inc-nysd-1944.