General Protecht Group, Inc. v. Leviton Manufacturing Co.

122 F. Supp. 3d 1114, 2015 U.S. Dist. LEXIS 109981, 2015 WL 4988635
CourtDistrict Court, D. New Mexico
DecidedAugust 3, 2015
DocketNo. CIV. 10-1020 JB/LFG
StatusPublished
Cited by6 cases

This text of 122 F. Supp. 3d 1114 (General Protecht Group, Inc. v. Leviton Manufacturing Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Protecht Group, Inc. v. Leviton Manufacturing Co., 122 F. Supp. 3d 1114, 2015 U.S. Dist. LEXIS 109981, 2015 WL 4988635 (D.N.M. 2015).

Opinion

MEMORANDUM OPINION 1

JAMES O. BROWNING, District Judge. '

THIS MATTER comes before the Court on the Plaintiffs Motion for Finding Exceptional Case Under 85 U.S.C. § 285 and Award of Attorneys’ Fees, filed June 22, 2012 (Doc. 202)(“Motion”). The Court held a hearing on March 6, 2013. The primary issue is whether Defendant Levi-tón Manufácturing Co. should pay some or all of the Plaintiffs’ attorneys fees, which would require the Court to find that Levi-tón Manufacturing litigated so unreasonably or from such a weak position that the case is “exceptional” under 35 U.S.C. § 285. The Court concludes that (i) Levi-tón Manufacturing’s position" was incorrect but not exceptionally so; and' (ii) Levitón Manufacturing did not litigate in an excessively unreasonable manner by asserting its faulty position. Consequently, the Court concludes the case is not exceptional, and, thus, no attorneys’ fees are warranted. Nonetheless, the Court will consider the reasonableness of the Plaintiffs’ requested attorneys’ fees and find that, even if the Court had found the case exceptional, it would not have awarded fees for: (i) clerical or secretarial tasks that paralegals performed;' (ii) work performed relating to a separate trade dispute; (iii) three attorneys to attend- single depositions; or (iv) travel expenses to send an attorney to China:

FACTUAL BACKGROUND

General Protecht Group, Inc.-2 and Levi-tón Manufacturing build and sell- competing ground fault -circuit interrupter (“GFCI”) products.- See Leviton Mfg. Co. v. Nicor, Inc., 557 F.Supp.2d 1231, 1235 (D.N.M.2007); Leviton Mfg. Co. v. Nicor, Inc., No. CIV 04-0424, 2006 WL 4079129, at *1 (D.N.M. May 23, 2006); Memorandum at 7. GFCIs are safety devices that reduce the risk of electrocution. See Leviton Mfg. Co. v. Nicor, Inc., 2006 WL 4079129, at *1. General Protecht markets and sells GFCI products to 'United States distributors, including Plaintiffs Harbor Freight Tools USA, Inc., Central Purchasing, LLC, G-Techt Global Corp., SecurE-lectric Corp., and Warehouse-Lighting.com LLC. See Leviton Mfg. Co. v. Zhejiang Dongzheng Elec. Co., 506 F.Supp.2d 646, 648-49 (D.N.M.2007); Leviton Mfg. Co. v. Nicor, Inc., 557 F.Supp.2d at 1235; Memorandum at 7. General Protecht manufactures its GFCI products in China. See Leviton Mfg. Co. v. Zhejiang Dongzheng Elec. Co., 506 F.Supp.2d at 648-49; Memorandum at 7.

1. The Prior Actions,

In 2004 and 2005, Levitón Manufacturing asserted claims of patent infringement of U.S. Patent Nos. 6,246-,558 (“the-'558 [1118]*1118Patent”) and 6,864,766 (“the '766 patent”) in the United States District Court for the District of New Mexico. See Memorandum at 8; Defendant Levitón Manufacturing Co.’s Memorandum of Law in Opposition to Plaintiffs’ Motion for Temporary Restraining Order and Preliminary Injunction at 3, filed November 12, 2010 (Doc. 18) (“Response”). In these actions, Levitón Manufacturing alleged that General Pro-techt, Harbor Freight, Central Purchasing, and Nicor, Inc. infringed Leviton’s '558 patent and '766 patent through them sale of GFCIs that General Protecht manufactured. See Leviton Mfg. Co. v. Nicor, Inc., Nos. CIV 04-0424 JB/RHS, CIV 04-1295 JB/ACT (D.N.M.); Leviton Mfg. Co. v. Zhejiang Dongzheng Elec., Co., No. CIV 05-0301 JB/DJS (D.N.M.). On March 5, 2007, the Court made a Markman3. ruling, which adopted General Protecht, Harbor Freight, Nicor, Inc., and Central Purchasing’s construction of the terms “movable bridge,” “predetermined condition,” and “reset portion.” Leviton Mfg. Co. v. Zhejiang Dongzheng Elec. Co., 506 F.Supp.2d at 648. On July 10, 2007, the Court granted summary judgment of non-infringement to General Protecht, Harbor Freight, and Nicor, Inc. with respect to the 558 patent. See Leviton Mfg. Co. v. Nicor, Inc., 557 F.Supp.2d at 1235, 1250-51.

2. The CSA.

In October 2007, Levitón Manufacturing, General Protecht, Harbor Freight, Nicor, Inc., and Central Purchasing entered into a confidential settlement agreement (“CSA”) to resolve the patent infringement actions pending in the Court. See Memorandum at 9; Response at 3. The CSA included a covenant not to sue. The covenant stated:

2.1 Levitón ... hereby covenants not to sue (1) Defendants, their officers, directors, shareholders, members, employees, subsidiaries, or affiliates for alleged infringement of the '558 and/or '766 patents based on the Dongzheng products currently accused of infringement in the '558 and/or '766 actions; and (2) Defendants, their officers, directors, shareholders, members, employees, subsidiaries, or affiliates for alleged infringement of the '558 patent and/or the '766 patent with respect to an anticipated future new GFCI product that Defendant Dongzheng has indicated its intent to market in the U.S. in the future,....

2.2 The dismissals and covenant not to sue by Levitón in Article 2.1 shall also apply to Defendants’ customers of the Dongzheng Products including, but not limited to, Interline Brands, Inc., provided such customers do not seek to invalidate any claim of the '558 or '766 patents or seek to have those patents declared invalid or unenforceable through any presently existing or future court action or administrative filing.

CSA §§ 2.1, 2.2, at 4-5. The CSA also contained a section regarding the District of New Mexico’s '766 Markman order.

The parties will jointly request that the Court vacate its '766 Order in ... the Court’s Memorandum Opinion and Order dated March 5, 2007, by submitting [1119]*1119a ¡joint motion and proposed form of Order to the Court— However, Levi-tón agrees not to challenge any proposed claim construction of a '766 patent claim that is reflected in the '.766 Markmcm Order, which any' of the Defendants, their officers, directors, shareholders, members, employees, subsidiaries, affiliates (or their customers) may propose in connection with any claim of infringement of a '766 patent claim. Defendants and their officers, directors, shareholders, members, employees, subsidiaries, affiliates (or their customers) are not precluded from proposing said claim construction in any action or proceeding asserting infringement of any patent related to the '766 patent, although Levitón may challenge such proposed claim construction. Levitón and defendants agree that neither the fact of the Court’s decision to vacate- or not vacate its '766 Markman Order, nor the fact that the parties requested that the Court vacate its '766 Markman Order, can be used by a party to this Agreement to support or challenge a proposed construction of a claim related to the '766 patent.

CSA § 4.1.

The CSA also contained a section entitled “Governing Law/Venue.” CSA § 11.2, at 11. This section states: “Any dispute between the Parties relating to or arising out of this [CSA] shall be prosecuted exclusively in the United States District Court for the District of New Mexico. The Parties, consent to the venue and jurisdiction of-such court fot this purpose.” CSA § 11.2, at 11.

3. Leviton’s'124 and '151 Patents.

After executing the CSA, Levitón Manufacturing secured two new patents — U.S. Patent Nos.

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Bluebook (online)
122 F. Supp. 3d 1114, 2015 U.S. Dist. LEXIS 109981, 2015 WL 4988635, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-protecht-group-inc-v-leviton-manufacturing-co-nmd-2015.