Gasswint v. Clapper

17 F.R.D. 309, 106 U.S.P.Q. (BNA) 136, 1955 U.S. Dist. LEXIS 3991, 1955 Trade Cas. (CCH) 68,087
CourtDistrict Court, W.D. Missouri
DecidedMarch 8, 1955
DocketNo. 9178
StatusPublished
Cited by7 cases

This text of 17 F.R.D. 309 (Gasswint v. Clapper) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gasswint v. Clapper, 17 F.R.D. 309, 106 U.S.P.Q. (BNA) 136, 1955 U.S. Dist. LEXIS 3991, 1955 Trade Cas. (CCH) 68,087 (W.D. Mo. 1955).

Opinion

RIDGE, District Judge.

Action by Charles W. Gasswint and the three corporations in which he is interested, for treble damages under Section Four of the Clayton Act, 15 U.S. C.A. § 15.

Specifically, the complaint, after setting forth the history of the issuance of defendants’ patent rights, alleges that the defendants have engaged in a combination and conspiracy to monopolize and restrain the sale and distribution of tractor cabs through the use of certain monopolistic practices, cross-licensing of patent rights, price-fixing, threatening potential competitors with patent infringement suits, and consistent refusal to license their patent rights to persons not members of the alleged conspiracy; and that, as a consequence, plaintiffs have been forced to abandon their competing business to their actual damage.

1. Motions by Defendants McCarthy and Comfort Equipment Company to Dismiss.

The first motion pending for our consideration is one by defendants McCarthy and Comfort Equipment Company to dismiss the complaint.

Several grounds are urged in support of such motion, the first of which can only be said to be that the several parties plaintiff are improperly joined. Such, of course, is not a proper ■ground for a motion to dismiss, Rule 21, Federal Rules of Civil Procedure, 28 U.S. C.A. The joinder of the present plaintiffs is clearly within the meaning of Rule 20(a), authorizing joinder as parties plaintiff all persons asserting several claims to relief “arising out of the same transaction, occurrence, or series of transactions or occurrences and if any question of law or fact common to all of them will arise in the action.” Here, each of the plaintiffs’ claims are based upon the same transactions and occurrences, each seeks the same relief, the questions of law and fact are common to all of them, and they are united in interest. The only defect in the complaint is that a single or suppositious claim for damages is alleged, when the complaint reveals that the claim for damages asserted can only be several and separate. Notwithstanding the joinder allowed, because of the exigency of the situation in United Mine Workers of America v. Coronado Coal Co., 259 U.S. 344, 42 S.Ct. 570, 66 L.Ed. 975, we think that Farmers Co-Op. Oil Co. v. Socony-Vacuum Oil Co., 8 Cir., 133 F.2d 101, makes it clear that when several non-legally separated plaintiffs join in a single action for damages because of the same violation of the Sherman and Clayton Acts, the complaint must allege the damages each such [312]*312plaintiff individually sustained and seeks to recover for such violation. From the allegations of the instant complaint it does not appear that plaintiffs can make claim for loss of any joint damages sustained. Therefore, the complaint must be amended to reveal their several claims. The plaintiffs will be given 20 days in which to make such an amendment to the instant complaint.

The second ground in support of the motion concerns the effect of res judicata as the result of a judgment entered in patent infringement litigation between these parties. It appears that as soon as plaintiffs began the manufacture of tractor cabs in 1947 they were faced with a claim by defendants that such product infringed upon defendants’ patent rights and with threats of suit for such claimed infringement. In 1950, the dispute was resolved by an agreement between the parties which plaintiffs now allege to have been obtained by “threats, intimidation, and coercion,” and by which the plaintiffs, for the consideration of being allowed to market their product for another year, agreed to submit to the entry of a consent decree against them adjudging defendants’ patents valid and the plaintiffs in infringement thereof. Such a consent decree was entered by the United States District Court for the Northern District of Iowa, on April 10, 1950. Defendants, relying on Hancock Oil Co. v. Universal Oil Products, 9 Cir., 1940, 115 F.2d 45, contend that said judgment bars the present action under the doctrine of res judicata, since the present claim for damages under the anti-trust laws could then have been asserted as an affirmative defense, or by way of counterclaim, and plaintiffs having failed to take either step are now debarred from prosecuting the instant claim.

Defendants’ contentions are without merit and fully answered by the case of Mercoid Corp. v. Mid-Continent Inv. Co., 320 U.S. 661, 64 S.Ct. 268, 274, 88 L.Ed. 376. There, the defendants, charged with contributory patent infringement, counterclaimed for treble damages under the Clayton Act for misuse of the patents ; the plaintiff then pleaded res judicata since the defendant had not raised such claim in previous litigation as to the patent’s validity. The Supreme Court dismissed that contention, holding, in addition to declaring that such a counterclaim was “permissive” under Rule 13 (b), rather than “compulsory” under Rule 13(a), that the doctrine of res judicata was not applicable, since a claim under the anti-trust laws “is more than a defense, it is a separate statutory cause of action” which need not be asserted in defense of the prior action:

“Though Mercoid were barred in the present ease from asserting any defense which might have been interposed in the earlier litigation, it would not follow, that its counterclaim for damages would likewise be barred. That claim for damages is more than a defense; it is a separate statutory cause of action. The fact that it might have been asserted as a counterclaim in the prior suit by reason of Rule 13(b) of the Rules of Civil Procedure * * * does not mean that the failure to do so renders the prior judgment res judicata as respects it. (Citation.) The case is then governed by the principle that where the second cause of action between the parties is upon a different claim the prior judgment is res judicata not as to the issues which might have been tendered but ‘only as to those matters in issue or points controverted, upon the determination of which the finding or verdict was rendered.’ ”

It has long been the law that it is no defense to a complaint for alleged infringement of a patent that the plaintiff has entered into a combination or conspiracy to use the patent in violation of the anti-trust laws. See Walker on Patents, Yol. 2, p. 1590, § 409, and cases there cited. If a patentee makes [313]*313use of his patent monopoly so as to violate the anti-trust laws, that is cause for equity to “withhold its assistance from such a use of the patent by declining to entertain a suit for infringement * * * until it is made to appear that the improper practice has been abandoned and that the consequences of the misuse of the patent have been dissipated.” Morton Salt Co. v. G. S. Suppiger Co., 314 U.S. 488, 493, 62 S.Ct. 402, 405, 86 L.Ed. 363. But that is not to say that when such a matter is raised and presented to a court of equity in an infringement action it is an absolute defense to the claim of infringement and that the infringer may make use of the patent with immunity.

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Bluebook (online)
17 F.R.D. 309, 106 U.S.P.Q. (BNA) 136, 1955 U.S. Dist. LEXIS 3991, 1955 Trade Cas. (CCH) 68,087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gasswint-v-clapper-mowd-1955.