Feng Li v. Matal

706 F. App'x 657
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 8, 2017
Docket2017-1684
StatusUnpublished

This text of 706 F. App'x 657 (Feng Li v. Matal) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Feng Li v. Matal, 706 F. App'x 657 (Fed. Cir. 2017).

Opinion

Per Curiam.

Feng Li appeals from the decision of the United States District Court for the Eastern District of Virginia granting the motion of the United States Patent and Trademark Office (“USPTO”) and the Director of the USPTO (collectively, “Appel-lees”) to dismiss Mr. Li’s complaint for lack of subject matter jurisdiction and failure to state a claim, thereby affirming the USPTO’s decision to exclude Mr. Li from practice before the USPTO. Li v. Matal, No. 15-cv-668 (E.D. Va. Jan. 22, 2016). We affirm.

I

In 2005, Mr. Li took over the representation of a group of individuals in litigation regarding a real estate transaction in New York. After successfully obtaining a judgment for his clients, Mr. Li disagreed with his clients on the amount of attorney’s fees he was owed, resulting in his clients filing suit in New Jersey state court. Knowing the fees were in dispute, Mr. Li transferred $1.2 million of the judgment into trust funds in his children’s names. The New Jersey Office of Attorney Ethics determined that Mr. Li violated the New Jersey Rules of Professional Conduct by taking possession of client funds he knew to be disputed. In 2013, the Supreme Court of New Jersey disbarred Mr. Li from the practice of law based on attorney misconduct.

In 2014, the Director of the USPTO’s Office of Enrollment and Discipline initiated reciprocal discipline proceedings against Mr. Li based on his disbarment in the State of New Jersey. The USPTO Director then issued a Notice and Order pursuant to 37 C.F.R. § 11.24, informing Mr. Li of the possibility that he would be excluded from practice before the USPTO. Mr. Li’s response to the Notice and Order did not dispute the fact that he had been disbarred in New Jersey, but rather argued that reciprocal discipline by the USP-TO was not justified because the New Jersey Supreme Court did not have jurisdiction to disbar him based on his conduct in New York. He further argued that the New Jersey Supreme Court’s actions violated the due process, equal protection, and Ex Post Facto clauses of the U.S. *658 Constitution. On April 28, 2015, the Director of the USPTO issued a final order pursuant to 37 C.F.R. § 11.24, excluding Mr. Li from practice before the USPTO. The USPTO Director carefully applied § 11.24 and found that Mr. Li failed to meet his burden to show by clear and convincing evidence that: (1) the New Jersey disciplinary process was “so lacking in notice or opportunity to be heard;” (2) there was an “infirmity of proof’ establishing his conduct; or (3) a “grave injustice” would result from his disbarment. Appx. 156-63.

On May 26, 2015, Mr. Li filed a complaint against Appellees in the District Court for the Eastern District of Virginia. His complaint set forth seven causes of action, covering a panoply of claims under various civil rights statutes. On November 16, 2015, Appellees filed motions to dismiss the complaint for lack of subject matter jurisdiction and failure to. state a claim. Construing Mr. Li’s complaint as a petition under 35 U.S.C. § 32 for judicial review of the USPTO’s decision to exclude him from appearing before that office, Appellees also filed a response to the petition. Despite Appellees having served Mr. Li and filed with each motion a copy of a formal Rose-boro notice informing Mr. Li of his right to file an opposition and consequences of failing to do so, Mr. Li did not file any opposition.

A hearing was held on Appellees’ motions to dismiss on January 22, 2016. Mr. Li failed to appear. Finding that no good cause existed to excuse Mr. Li’s failure to oppose Appellees’ motions, the court proceeded with the hearing and granted the motions to dismiss. The court then affirmed the USPTO’s final order excluding Mr. Li from practice. Recognizing Mr. Li’s pro se status, the court broadly construed the complaint as a request under 35 U.S.C. § 32 for judicial review of the USPTO’s decision to impose reciprocal discipline based on his disbarment in New Jersey, The district court held that § 32 is “the exclusive mechanism by which to challenge the actions of the USPTO with respect to the reciprocal discipline that was imposed.” 1/22/16 Hearing Transcript 6:1-4, Dkt. No. 39 (“Tr.”). The district court affirmed the USPTO’s decision, holding that its “findings and resulting reciprocal discipline against the plaintiff [were] not arbitrary and capricious,” and that “those findings were fully supported by the record.” Id. at 6:24-7:4. Mr. Li filed a motion for reconsideration of the court’s dismissal order and the district court denied that motion.

Mr. Li appealed to the Fourth Circuit. Concluding that it lacked appellate jurisdiction over a claim of the type asserted by Mr. Li, the Fourth Circuit transferred the appeal to this court pursuant to 28 U.S.C. § 1631. Order, Li v. Lee, No. 16-1569 (4th Cir. Feb. 23, 2017). Regardless of how Mr. Li styled the complaint, his claim for review of the USPTO’s exclusion of Mr. Li from practice before the USPTO constitutes a request for judicial review under 35 U.S.C. § 32. We have jurisdiction pursuant to 28 U.S.C. ,§ 1295(a)(1).

II

Judicial review of a disciplinary action taken by the USPTO is governed by the provisions of the Administrative Procedure Act. Bender v. Dudas, 490 F.3d 1361, 1365-66 (Fed. Cir. 2007). A disciplinary decision will be upheld unless it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with- law.” Id. (quoting 5 U.S.C. § 706). Our review of a district court’s decision on a petition brought pursuant to 35 U.S.C. § 32 is de novo, “reapplying the standard” applied by the district court under the APA. Sheinbein v. Dudas, 465 F.3d 493, 495 (Fed. Cir. *659 2006). This court applies the rule of the regional circuit to resolve the question whether a Rule 12(b) motion was properly granted. Superior Indus., LLC v. Thor Global Enterprises Ltd,, 700 F.3d 1287, 1292 (Fed. Cir. 2012). The Fourth Circuit reviews de novo a district court’s decision granting a motion to dismiss. Sucampo Pharm., Inc. v. Astellas Pharma, Inc., 471 F.3d 544, 550 (4th Cir. 2006).

We -first address the dismissal of Mr. Li’s various civil rights claims, including claims under 42 U.S.C. §§ 1981

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Related

Bender v. Dudas
490 F.3d 1361 (Federal Circuit, 2007)

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Bluebook (online)
706 F. App'x 657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/feng-li-v-matal-cafc-2017.