Curtis Manufacturing Co. v. Plasti-Clip Corp.

888 F. Supp. 1212, 1994 U.S. Dist. LEXIS 16699, 1994 WL 808234
CourtDistrict Court, D. New Hampshire
DecidedNovember 21, 1994
DocketCiv. 89-430-SD
StatusPublished
Cited by16 cases

This text of 888 F. Supp. 1212 (Curtis Manufacturing Co. v. Plasti-Clip Corp.) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Curtis Manufacturing Co. v. Plasti-Clip Corp., 888 F. Supp. 1212, 1994 U.S. Dist. LEXIS 16699, 1994 WL 808234 (D.N.H. 1994).

Opinion

ORDER

DEVINE, Senior District Judge.

In this consolidated civil action, the parties raise a number of issues relating to bankruptcy, patent infringement, and certain business-related competitive torts. The court has federal question jurisdiction, which encompasses supplemental state law issues as well. 28 U.S.C. §§ 1331, 1334,1338,1367. Presently before the court is the motion to dismiss or for summary judgment filed by both Curtis and Judd, 1 to which Plasti-Clip and Faneuf object.

Factual History

Daniel Faneuf invented a plastic clip device which is manufactured and sold through a company of which he is the president and sole stockholder, Plasti-Clip Corporation (Plasti-Clip). The Faneuf clip was issued United States Letters Patent Number 4,277,-863 (’863 patent) on July 14, 1981. In late March or early April of 1989, Faneuf entered into negotiations with Curtis Manufacturing Company (Curtis), a computer peripheral products company, and its president, Thomas W. Judd, at Curtis’s instigation regarding the feasibility of adapting the Faneuf clip to accommodate Curtis’s document holder application. Prior to the complete breakdown of negotiations between Faneuf and Curtis in September of 1989, Curtis’s patent counsel filed a patent application which incorporated Faneufs revised clip design but indicated Judd as the inventor. On February 12,1990, United States Letters Patent Number 4,902,-078 (’078 patent) was issued to Curtis as the assignee of Judd for a plastic clip document holder device which incorporates the accused plastic clip.

Procedural History

On September 8, 1989, Curtis brought action against Plasti-Clip and Faneuf under federal patent law seeking a declaration of noninfringement and invalidity as to the ’863 Patent. For the nearly five years thereafter, plaintiffs and defendants have been litigating the validity of the patents at issue. Plasti-Clip and Faneuf filed counterclaims against Curtis and Judd on October 19, 1989. Said action, Curtis Manufacturing Company, Inc. v. Plasti-Clip Corporation, et al, Civil No. 89-430-SD, was automatically stayed on March 1, 1991, based on Curtis’s filing for reorganization pursuant to Chapter 11 of the Bankruptcy Act, 11 U.S.C. § 1101, et seq.

Plasti-Clip and Faneuf brought direct action against Judd on July 13, 1992, and amended their complaint on August 11, 1992. Plasti-Clip Corporation, et al v. Judd, Civ. No. 92-360-B. The amended complaint contains claims under federal patent law for infringement of the ’863 Patent and fraudulent procurement of the ’078 Patent and claims for violation of federal and New Hampshire antitrust laws, and for violation of New Hampshire prohibitions on unfair trade practices, as well as common law claims for breach of eontraet/quantum meruit, tortious *1216 interference with contractual relations, and conversion/idea misappropriation.

On September 22,1992, Judd filed counterclaims against Plasti-Clip and Faneuf under federal patent law for noninfringement and invalidity as to the ’863 Patent. In their amended counterclaim, Plasti-Clip and Faneuf brought claims for infringement of the ’863 and/or the ’078 Patent since April 1, 1993, fraudulent procurement of the ’078 Patent, violation of federal and New Hampshire antitrust claims, violation of New Hampshire prohibitions on unfair trade practices, as well as a common-law claim for conversion/idea misappropriation.

Plasti-Clip and Faneuf moved to consolidate the two actions on March 2, 1994. On March 31, 1994, this court, recognizing the substantial similarity between the factual allegations and legal theories supporting the claims raised in each of the respective actions, ordered their consolidation pursuant to Rule 42(a), Fed.R.Civ.P. 2 In addition, since plaintiffs argued that defendants’ claims were barred by operation of the Bankruptcy Act at 11 U.S.C. 524(a)(2) and 1141(d)(1)(A), they were ordered by the court to file a motion for summary judgment to that effect. On May 16, 1994, plaintiffs, complying with the court’s order, submitted the instant motion to dismiss or for summary judgment, along with a substantial number of materials outside the pleadings. Defendants, in turn, filed a motion in opposition thereto, similarly appended. In light of the voluminous materials presented in conjunction with the briefs, the court will treat the motion as one for summary judgment pursuant to Rule 12(b), Fed.R.Civ.P.

Discussion

1. Summary Judgment Standard

Summary judgment shall be ordered when “there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law.” Rule 56(c), Fed.R.Civ.P. Since the purpose of summary judgment is issue finding, not issue determination, the court’s function at this stage “ ‘is not [ ] to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial.’ ” Stone & Michaud Ins., Inc. v. Bank Five for Savings, 785 F.Supp. 1065, 1068 (D.N.H.1992) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 2516, 91 L.Ed.2d 202 (1986)). Although summary judgment may well be appropriate if the nonmovant chooses to merely rely upon some combination of “conclusory allegations, improbable inferences, and unsupported speculation,” Medi na-Munoz v. R.J. Reynolds Tobacco Co., 896 F.2d 5, 8 (1st Cir.1990), the entire record will be scrutinized in the light most favorable to the nonmovant, with all reasonable inferences indulged in that party’s favor. Maldonado-Denis v. Castillo-Rodriguez, 23 F.3d 576, 581 (1st Cir.1994); see also Brennan v. Hendrigan, 888 F.2d 189, 191 (1st Cir.1989); Mack v. Great Atlantic & Pacific Tea Co., 871 F.2d 179, 181 (1st Cir.1989).

The respective roles of the movant and the nonmovant in summary judgment practice are precisely choreographed. The First Circuit has described the steps in the following manner:

The movant must put the ball in play, averring “an absence of evidence to support the nonmoving party’s case.” The burden then shifts to the nonmovant to establish the existence of at least one fact issue which is both “genuine” and “material.” A “genuine” issue is one “that properly can be resolved only by a finder of fact because [it] may reasonably be resolved in favor of either party.” Put another way, a “genuine” issue exists if there is “sufficient evidence supporting the claimed factual dispute” to require a choice between “the parties’ differing versions of the truth at trial.” A “material” issue is one that “affect[s] the outcome of the suit,” that is, an issue which, perforce, “need[s] to be resolved before the related legal issues can be decided.”
*1217 Garside v. Osco Drug, Inc.,

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Bluebook (online)
888 F. Supp. 1212, 1994 U.S. Dist. LEXIS 16699, 1994 WL 808234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curtis-manufacturing-co-v-plasti-clip-corp-nhd-1994.