Clopay Corp. v. Newell Companies, Inc.

527 F. Supp. 733, 213 U.S.P.Q. (BNA) 636, 1981 U.S. Dist. LEXIS 17203
CourtDistrict Court, D. Delaware
DecidedNovember 23, 1981
DocketCiv. A. 81-110, 81-124
StatusPublished
Cited by24 cases

This text of 527 F. Supp. 733 (Clopay Corp. v. Newell Companies, 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.

Bluebook
Clopay Corp. v. Newell Companies, Inc., 527 F. Supp. 733, 213 U.S.P.Q. (BNA) 636, 1981 U.S. Dist. LEXIS 17203 (D. Del. 1981).

Opinion

OPINION

CALEB M. WRIGHT, Senior District Judge.

I. BACKGROUND

In March of 1981, Clopay Corporation (“Clopay”) filed suit against Newell Companies, Inc. (“Newell”) and against Graber Industries, Inc. (“Graber”). Both suits allege infringement of patents held by Clopay and relating to adjustable window shades. The patents in dispute in these cases disclose features by which customers can themselves adjust the shades to fit their windows. Until recently, it has apparently been necessary to have manufacturers or retailers cut the shades to appropriate widths through a rather cumbersome and expensive process.

In each suit, Clopay alleges infringement of its Patent No. 4,102,384 (’384). In addition, in its complaint against Graber, Clopay alleges infringement of Patent No. 4,102,-383 (’383). In each case, Clopay has requested a jury trial.

Both Graber and Newell have moved to have the suits transferred. In May of 1981, Graber moved for transfer to the Western District of Wisconsin. In June, Newell moved that the suit against it be transferred to the Northern District of Illinois. Clopay opposes both motions. In late August of 1981, Clopay moved to consolidate the two cases and keep them in this Court.

Both Newell and Graber are incorporated in Delaware. Clopay is a Maryland corporation. Newell’s principal place of business is at Freeport, Illinois in the Western Division of the Northern District of Illinois. Newell does not have offices or manufacturing or sales facilities in the State of Delaware. 1 Graber’s principal place of business is in Middleton, Wisconsin; it has no sales or business offices in Delaware. 2 Clopay’s corporate headquarters are in Cincinnati, Ohio.

The Court heard simultaneous arguments on the two transfer motions and the motion to consolidate. The parties submitted post-argument memoranda. This opinion represents the Court’s findings and conclusions with regard to all three motions.

II. CLOPAY’S MOTION TO CONSOLIDATE

Clopay’s motion to consolidate the two suits seems, at first glance, likely to promote the most efficient solution of these disputes. Given that both involve customer-adjustable window shades and both allege infringement of the ’384 patent, the two cases appear quite similar. In many ways they are.

They differ, however, in one respect that may well be material to their outcomes. In its suit against Graber, Clopay has alleged infringement of a second patent, the ’383 patent. While this fact would not be particularly salient were the cases being tried to the Court, it takes on additional significance in light of the fact that Clopay has requested juries in both cases. Juries in patent cases are frequently called upon to weigh extraordinary volumes of complex material. In such situations, it may not be reasonable to expect a jury to screen out, in its deliberations regarding one defendant, evidence it has been instructed to consider with respect to another defendant. In short, the interests of justice in these cases may dictate separate trials to different juries. 3

The possibility that separate trials would be necessary diminishes the likelihood that consolidation in this District represents the most efficient approach to these cases. Al *736 though it would be possible to consolidate the cases for purposes of discovery only, the advantages of so doing would be limited by the fact that, as discussed below the Court expects that the bulk of discovery will be conducted in the mid-West. Judicial efficiency and the interests of justice are unlikely to be best served by structuring the cases in a way that requires that any disputes relating to discovery — disputes likely to arise in Illinois, Ohio or Wisconsin — be resolved in Wilmington.

Clopay has failed to persuade the Court that consolidation in this District represents the most efficient use of judicial resources or would reliably tend to avoid unnecessary costs or delay. See Rule 42(a), F.R.Civ.P.

III. MOTIONS TO TRANSFER

Venue in patent infringement cases is governed solely and exclusively by 28 U.S.C. § 1400(b). Fourco Glass Co. v. Transmirra Corp., 353 U.S. 222, 229, 77 S.Ct. 787, 792, 1 L.Ed.2d 786 (1957). See Schnell v. Peter Eckrich & Sons, 365 U.S. 260, 81 S.Ct. 557, 5 L.Ed.2d 546 (1961). Consequently, in evaluating Newell’s and Graber’s motions to transfer under 28 U.S.C. § 1404, the Court must apply § 1400 to those aspects of the transfer decision which apply to venue. By virtue of their incorporation here, both Graber and Newell “reside” in Delaware for purposes of § 1400(b). Dual Manufacturing & Engineering v. Burris Industries, Inc., 531 F.2d 1382 (7th Cir. 1976); Devex Corp. v. General Motors Corp., 263 F.Supp. 17 (D.Del.1967).

A. Convenience to Parties and Witnesses

These suits have their “center of gravity” in the mid-West. Though none of the three corporations involved is incorporated in the mid-West, they are all headquartered in either Illinois, Ohio or Wisconsin. Clopay does not allege any contact with Delaware. Newell and Graber allege that they have no contact beyond incorporation here.

By contrast, all three corporations have extensive production and sales facilities in one or more of Ohio, Illinois and Wisconsin. Marketing, research, and warehousing facilities, as well as all executive offices, are closer to Chicago than they are to Wilmington. The parties’ principal attorneys are from Cincinnati and Chicago. Every potential witness that has been brought to the attention of this Court is a resident of either Illinois or Wisconsin. Newell and Graber argue that the prolonged absence of any of these proposed witnesses would seriously disrupt the conduct of their respective businesses. All of the documents likely to be crucial to both discovery and trial are located in Ohio, Illinois or Wisconsin. None of these documents are in Delaware.

In opposition to Newell’s and Graber’s arguments and evidence of serious inconvenience to parties and witnesses, Clopay offers little but a recitation of the weight that should be accorded plaintiff’s choice of forum. While this Court acknowledges and follows the holding of Shutte v. Armco Steel Corp., 431 F.2d 22 (3d Cir. 1970), cert. denied 401 U.S. 910, 91 S.Ct. 871, 27 L.Ed.2d 808 (1971), upon which Clopay’s argument primarily relies, it recognizes its obligation to decide each case on its own merits. Shutte did not hold that plaintiff’s choice of forum was conclusive so long as venue was proper.

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Bluebook (online)
527 F. Supp. 733, 213 U.S.P.Q. (BNA) 636, 1981 U.S. Dist. LEXIS 17203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clopay-corp-v-newell-companies-inc-ded-1981.