Genentech, Inc. v. Abbott Laboratories

127 F.R.D. 529, 10 U.S.P.Q. 2d (BNA) 1871, 1989 U.S. Dist. LEXIS 9311, 1989 WL 111452
CourtDistrict Court, N.D. California
DecidedMarch 29, 1989
DocketNo. C-88-0889 MHP
StatusPublished
Cited by86 cases

This text of 127 F.R.D. 529 (Genentech, Inc. v. Abbott Laboratories) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Genentech, Inc. v. Abbott Laboratories, 127 F.R.D. 529, 10 U.S.P.Q. 2d (BNA) 1871, 1989 U.S. Dist. LEXIS 9311, 1989 WL 111452 (N.D. Cal. 1989).

Opinion

MEMORANDUM AND ORDER

PATEL, District Judge.

Plaintiff Genentech, a pharmaceutical company, filed suit against Abbott Laboratories, another pharmaceutical company, seeking a declaratory judgment under 28 U.S.C. §§ 2201 and 2202 that a recombinant product produced by plaintiff does not infringe patents issued to defendant. Abbott Laboratories filed a counterclaim asking for a judgment that its patents are valid and have been infringed, and sought damages for infringement.

The action now comes before the court on plaintiff’s motion, pursuant to Federal Rule of Civil Procedure 15, to amend parts of the complaint for declaratory relief. Since defendant Abbott Laboratories does not object to certain additions proposed by plaintiffs, the court grants plaintiff’s motion as unopposed with respect to those parts. Having considered the papers and arguments submitted by the parties, the court now grants plaintiff's motion to add paragraphs 10(a); 10(b); 10(d)(iii), (iv), (vi), and (vii); and 11 as provided in the amended complaint for declaratory relief. BACKGROUND

The factual background concerning this dispute was discussed extensively in the court’s order of March 13, 1989, and shall not be repeated in detail here. In March 1988, plaintiff Genentech filed a complaint with this court, seeking a declaration that the Hung patents are invalid because they fail to comply with 35 U.S.C. § 112, the statutory requirement of enablement. In the order of March 13, 1989, the court denied plaintiff’s motion seeking summary judgment that defendant’s patents were not enabling within the meaning of 35 U.S.C. § 112.

Genentech now seeks to amend its complaint to include the following: 1) claims against defendant under 35 U.S.C. § 101, which requires that a patent be useful (paragraph 10(a) of the proposed amended complaint); 2) claims under 35 U.S.C. § 102, which require that a patent be novel and unanticipated, and under 35 U.S.C. § 103, which requires that a patent not be obvious (paragraph 10(b)); 3) allegations of fraudulent acts by defendant before the Patent-Office (paragraph 10(d)(iii), (iv), (vi) and (vii)); and 4) an allegation that defendant is estopped from asserting its counterclaims for infringement against Genentech. DISCUSSION

Federal Rule of Civil Procedure 15 provides that leave to amend “shall be freely given when justice so requires.” Fed.R. Civ.P. 15(a). The Supreme Court has stated that “this ’ mandate is to be heeded.” Foman v. Davis, 371 U.S. 178, 183, 83 S.Ct. 227, 230, 9 L.Ed.2d 222 (1962). As the Ninth Circuit has stated, Rule 15’s policy of permitting amendments “should be applied with ‘extreme liberality.’ ” DCD Programs, Ltd. v. Leighton, 833 F.2d 183, 186 (9th Cir.1987) (citations omitted).

In determining whether amendments are appropriate, courts commonly consider four factors: 1) bad faith of the moving party, 2) delay in the proceedings, 3) prejudice to the nonmoving party, and 4) futility of amendment. DCD Programs, 833 F.2d at 186 (citation omitted). These factors are not equally important; the possibility of delay alone cannot justify denial of leave to amend. Id. Of particular concern is avoiding prejudicial effects upon the nonmoving party. Id. at 187 (citing Korn v. Royal Caribbean Cruise Line, Inc., 724 F.2d 1397, 1400 (9th Cir.1984)). Thus, the Federal Circuit, in a case applying Ninth Circuit law, has stated: “The single most important factor is whether prejudice would result to the nonmovant.” SenzaGel Corp. v. Seiffhart, 803 F.2d 661, 666 (Fed.Cir.1986) (citing William Inglis & Sons Baking Co. v. ITT Continental Baking Co., 668 F.2d 1014, 1053 n. 68 (9th Cir.1981), cert. denied, 459 U.S. 825, 103 S.Ct. 57, 74 L.Ed.2d 61 (1982)). Furthermore, since Rule 15 favors a liberal policy towards amendment, the nonmoving party bears the burden of demonstrating why [531]*531leave to amend should not be granted. Senza-Gel Corp., 803 F.2d at 666.

In the instant case, defendant contends that several of plaintiff’s proposed amendments would unduly prejudice the defendant. Defendant asserts that the addition of the amendments in issue would require it to depose numerous witnesses across the country who have been previously questioned and would necessitate additional document searches and written discovery. Defendant further argues that additional discovery will postpone the trial date.

Such delays do not constitute undue prejudice to the defendant. Plaintiff has offered plausible reasons for its earlier failure to include allegations under 35 U.S.C. §§ 101, 102, 103 and 112, as well as its contention that the patent is unenforceable because it was obtained through inequitable conduct before the Patent Office. According to the plaintiff, facts came to light only after the original complaint was filed and during the course of discovery, which was limited to the enablement issue. The court need not speculate on the ultimate persuasiveness of those new facts, but notes that plaintiff has made credible representations regarding changed circumstances.1

Defendant nevertheless maintains that the liberal policy of Rule 15 should not be applied here. Cases cited by the defendant, however, are easily distinguishable from the case at bar. In Tenneco Resins, Inc. v. Reeves Bros., Inc., 752 F.2d 630, 635 (Fed.Cir.1985), the Federal Circuit affirmed the district court’s denial of leave to amend a reply to a counterclaim, which would have added the defenses of invalidity and unenforceability. The Tenneco

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127 F.R.D. 529, 10 U.S.P.Q. 2d (BNA) 1871, 1989 U.S. Dist. LEXIS 9311, 1989 WL 111452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/genentech-inc-v-abbott-laboratories-cand-1989.