Delta Process Equipment, Inc. v. New England Ins. Co.

560 So. 2d 923, 1990 La. App. LEXIS 881, 1990 WL 47757
CourtLouisiana Court of Appeal
DecidedApril 10, 1990
DocketCW 89 1331
StatusPublished
Cited by2 cases

This text of 560 So. 2d 923 (Delta Process Equipment, Inc. v. New England Ins. Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Delta Process Equipment, Inc. v. New England Ins. Co., 560 So. 2d 923, 1990 La. App. LEXIS 881, 1990 WL 47757 (La. Ct. App. 1990).

Opinion

560 So.2d 923 (1990)

DELTA PROCESS EQUIPMENT, INC.
v.
NEW ENGLAND INSURANCE CO., a Foreign Corporation, and David L. Ray.

No. CW 89 1331.

Court of Appeal of Louisiana, First Circuit.

April 10, 1990.
Rehearing Denied June 4, 1990.

Timothy Monahan, Baton Rouge, for plaintiff Delta Process Equipment, Inc.

C. Emett Pugh, New Orleans, for Pugh and Associates.

Allen Darden, H. Alston Johnson, III, Baton Rouge, for New England Ins. Co., David L. Ray.

Alfred McCaleb, III, Baton Rouge, for David L. Ray.

Before LOTTINGER, CRAIN and LeBLANC, JJ.

LOTTINGER, Judge.

We granted this rehearing of a supervisory writ to reconsider our previous decision which reversed the trial court's denial of defendant's declinatory exception raising the objection of lack of subject matter jurisdiction. At issue is whether the courts of this state have subject matter jurisdiction over a cause of action for attorney malpractice, where the alleged negligence of the attorney involves issues of federal patent law; or is jurisdiction vested exclusively in the federal courts pursuant to 28 U.S.C. § 1338(a)[1].

FACTS AND PROCEDURAL HISTORY

The plaintiff, Delta Process Equipment, Inc. (Delta), alleges that in November of 1983 it retained attorney David L. Ray (Ray), to advise it as to the patentability of its home sewage treatment system and to secure patent protection for it. Delta further contends that when Ray was initially retained its system had been in public use *924 for approximately six months, and that defendant Ray was aware of this by April of 1984 at the latest.

Defendant Ray filed a patent application for Delta's invention on September 16, 1985. On March 17, 1987, patent No. 4,650,577 was issued pursuant to this application. Two months later a competitor accused Delta of fraud on the patent office, use of an invalid patent, antitrust violations, and unfair trade practices. These accusations were based on 35 U.S.C. § 102(b), otherwise known as a "statutory bar." This statute provides in part that "[a] person shall be entitled to a patent unless ... the invention was in public use or on sale in this country, more than one year prior to the date of the application for patent...."

Delta thereafter filed an attorney malpractice suit against Ray and his insurer, New England Insurance Co. (New England), in the 19th Judicial District Court, Parish of East Baton Rouge. Delta alleges that Ray was negligent in that he failed to timely file the patent application, he failed to make relevant inquiries and disclosures concerning prior sales of the system, and that he gave erroneous advice concerning the timing of the patent application.[2]

After answering the petition, the defendants filed the declinatory exception raising the objection of lack of subject matter jurisdiction based on 28 U.S.C. § 1338(a). The trial court overruled the exception. We granted writs, and finding that plaintiff's claim was subject to exclusive federal jurisdiction under § 1338(a), we reversed the trial court and dismissed plaintiff's case with prejudice. We then granted this rehearing upon plaintiff's request.[3]

ISSUE

The sole issue presented for resolution in this rehearing is whether this professional malpractice cause of action, which alleges that the defendant attorney failed to timely file a patent application within one year of the first public use of an invention, as required by 35 U.S.C. § 102(b), is an action "arising under" the patent laws pursuant to 28 U.S.C. § 1338(a).

LAW

The "arising under" language in 28 U.S.C. § 1338(a) parallels the general federal question "arising under" jurisdictional provision found in 28 U.S.C. § 1331. It is clear that Congress specifically intended the "arising under" language in § 1338(a) to be interpreted in the same way as the "arising under" language in § 1331 for purposes of federal question jurisdiction. House of Representative No. 312, 97th Congress, 1st Session, 41; Christianson v. Colt Industries Operating Corp., 822 F.2d 1544, 1553 (Fed.Cir.1987), aff'd 486 U.S. 800, 108 S.Ct. 2166, 2173, 100 L.Ed.2d 811 (1988).

*925 Christianson is the U.S. Supreme Court's most recent pronouncement on the § 1338(a) jurisdictional language. Christianson arose as a result of a conflict between federal circuit courts. The Court of Appeals for the Federal Circuit had reached an impasse with the Seventh Circuit Court of Appeals concerning which court should hear an appeal from the Federal District Court for the Central District of Illinois. Title 28 U.S.C. § 1295(a)(1) grants to the Court of Appeals for the Federal Circuit exclusive jurisdiction over appeals of actions based at least "in part" upon 28 U.S.C. § 1338. Accordingly, in order to decide which appellate court had jurisdiction over the case on appeal, the Supreme Court had to determine whether or not the case was covered by 28 U.S.C. § 1338(a). Justice Brennan, writing for a unanimous court, stated the issue as follows; "[t]hus, the jurisdictional issue before us turns on whether this is a case `arising under' a federal patent statute, for if it is then the jurisdiction of the District court was based at least `in part' on § 1338." 108 S.Ct. at 2173.

The Supreme Court was well aware that its decision concerning § 1338 would have implications far beyond which appellate court should hear the Christianson appeal. The court recognized that its decision would affect the division of jurisdiction between state and federal courts:

"Colt correctly points out that in this case our interpretation of § 1338's `arising under' language will merely determine which of two federal appellate courts will decide the appeal, and suggests that our `arising under' jurisprudence might therefore be inapposite. Since, however, § 1338 delineates the jurisdiction of the federal and state courts over cases involving patent issues, the phrase (like the identical phrase in § 1331) `masks a welter of issues regarding the interrelation of federal and state authority and proper management of the federal judicial system.'" (citations omitted) (emphasis added) 108 S.Ct. at 2173, fn 2.

Justice Brennan's synopsis of the jurisprudence pertinent to the determination of whether or not a case is one "arising under" federal patent law is found at page 2173 of the Christianson opinion.

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