Gravelle v. Kaba Ilco Corporation

684 F. App'x 974
CourtCourt of Appeals for the Federal Circuit
DecidedApril 12, 2017
Docket2016-2318
StatusUnpublished
Cited by10 cases

This text of 684 F. App'x 974 (Gravelle v. Kaba Ilco Corporation) 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
Gravelle v. Kaba Ilco Corporation, 684 F. App'x 974 (Fed. Cir. 2017).

Opinion

Per Curiam.

Gordon Gravelle, operating as CodePro Manufacturing, sued Kaba Ileo Corp. (Kaba) in the Eastern District of North Carolina. In his complaint, he focused on the fact that Kaba falsely marked its key-cutting machines as “patent pending” for a time, as Kaba eventually admitted, and sought monetary relief under the Patent Act’s false-marking provision, 35 U.S.C. § 292; the Lanham Act’s false-advertising provision, 15 U.S.C. § 1125; and North Carolina’s Unfair and Deceptive Practices • Act, N.C. Gen. Stat. § 75-1.1 et seq. Gra-velle has represented himself in the district court and on appeal in this case.

Three orders of the district court in the case are before us. One is the district court’s grant of summary judgment to Kaba. Order, Gravelle v. Kaba Ilco Corp., No. 5:13-cv-642-FL, 2016 WL 2644890 (E.D.N.C. May 9, 2016), ECF No. 72 (Summary Judgment Order). The second is the district court’s order granting Kaba $3,031.25 of the $11,640 Kaba sought to recoup expenses it incurred in successfully moving to compel Gravelle to attend a deposition at which he would be questioned. Order, Gravelle v. Kaba Ilco Corp., No. 5:13-cv-642-FL, 2015 WL 9451047 (E.D.N.C. Dec. 23, 2015), ECF No. 59 (Reimbursement Order). The third order at issue is the award of attorneys’ fees after the grant of summary judgment. Order, Gravelle v. Kaba Ilco Corp., No. 5:13-cv-642-FL, 2016 WL 3920208 (E.D.N.C. July 15, 2016), ECF No. 85 (Fees Order).

Gravelle timely appealed those orders to the Fourth Circuit, which transferred the appeal to this court. We affirm the first two orders, but we vacate the order awarding attorneys’ fees and remand on that issue for further consideration.

I

Gravelle has been designing, marketing, and distributing electronic key-cutting machines for more than 20 years. From 1998 until around 2014, Gravelle sold a key-cutting machine model called the CodePro 4500. In an unspecified year in this period, Gravelle may have sold as many as 19 machines. In the years around 2006, Gra-velle testified, he was selling “eight to ten” machines per year. By 2012, sales of the CodePro 4500 had dropped to about four machines per year, and in 2013 and 2014 he sold only four machines total. In 2010, Gravelle began marketing a second key-cutting machine, the RapidKey 7000. Between 2011 and 2015, Gravelle sold “around 35 or 32” RapidKey 7000 machines. In April 2015, Gravelle sold the rights to the RapidKey 7000 to Hudson Lock LLC (Hudson). Gravelle testified that between October 2014 and September 2015, Hudson sold “between 50 and 85” RapidKey 7000 machines and spent “probably .... $30,000 in advertising.” Gravelle refused to produce documentary evidence of his sales in response to Kaba’s interrogatories.

Beginning around 2008, Kaba began marketing its EZ Code machine. It marked two features, the “automatic blade detection” and “automatic calibration,” as “patent pending,” although no patent application for those features was ever filed. Kaba sold 687 EZ Codé machines between 2008 and 2015. Although Gravelle contacted Kaba three times to investigate the truth of Kaba’s “patent pending” claims— by email on October 8, 2008; by phone on *977 August 7,2013; and by email on August 20, 2013—Kaba did not respond, and it continued to use the false marking through at least September 10, 2013.

Gravelle filed this lawsuit against Kaba in the Eastern District of North Carolina on September 6, 2013, focusing on Kaba’s false marking of its products and asserting claims under 35 U.S.C. § 292(a), under 15 U.S.C. § 1125,. and under North Carolina law. 1 On February 10, 2015, the court granted the parties’ joint request for an extension of the discovery deadline through April 30, 2015, because Gravelle had undergone ear surgery and could not attend a previously noticed deposition. The parties indicated that Gravelle would be available for deposition before the end of April, and Kaba properly noticed Gra-velle’s deposition for April 29, 2015. Kaba Ilco’s Mem. in Support of its Mot. to Compel and for Expense Reimbursement Ex. F, Gravelle v. Kaba Ilco Corp., No. 5:13-cv-642-FL (E.D.N.C. July 2, 2015), ECF No. 40. On April 21, 2015, Gravelle made it clear that he would not be attending that deposition either. Id. Ex. I. In July 2015, Kaba filed a motion to compel Gra-velle’s attendance at a deposition; Kaba supported the motion with fourteen exhibits. Id. The district court granted the motion to compel in a text order, stating: “For the reasons and on the bases therein stated, defendant’s motion to compel, (DE 38), is ALLOWED.” Text Order, Gravelle v. Kaba Ilco Corp., No. 5:13-cv-642-FL (E.D.N.C. Aug. 19, 2015). Kaba filed a declaration to support its request for reimbursement of expenses relating to the motion to compel seeking $11,640.00. The district court awarded Kaba $3,031.25. Reimbursement Order 9. Gravelle paid the award and was deposed on September 18, 2015.

Kaba filed a motion for summary judgment on December 9, 2015, and Gravelle filed a motion for summary judgment on January 21, 2016. On May 9, 2016, the district court granted Kaba’s motion on all counts, denied Gravelle’s motion, and entered judgment for Kaba. Summary Judgment Order 18.

On May 23, 2016, Kaba filed a motion for attorneys’ fees. Although Gravelle did not respond, the district court addressed the motion on, its merits, granting it on July 15, 2016. The court held that this was an exceptional case, under 35 U.S.C. § 285 and 15 U.S.C. § 1117(a) and a case involving a “complete absence of a justiciable issue of either law or fact raised by the losing party in any pleading” under N.C. Gen. Stat. § 6-21.5. Fees Order 5-6. The amount of fees has yet to be determined.

Gravelle timely appealed to the Fourth Circuit on June 6, 2016. On June 23, 2016, the Fourth Circuit granted Gravelle’s motion to transfer his appeal to this court. Order, Gravelle v. Kaba Ilco Corp., No. 16-1646 (June 23, 2016). On August 10, 2016, Gravelle filed an amended notice of appeal to include the attorneys’ fees award. We have jurisdiction under 28 U.S.C. § 1295(a)(1).

II

Gravelle appeals the district court’s summary judgment order, the order reimbursing Kaba for $3,031.25 in expenditures relating to the motion to compel, and the order granting attorneys’ fees to Kaba. We review a grant of summary judgment de novo. Lismont v. Alexander Binzel Corp., 813 F.3d 998, 1002 (Fed. Cir. 2016); Waste Mgmt. Holdings, Inc. v. Gilmore, 252 F.3d 316, 329 (4th Cir. 2001). We review the district court’s reimbursement and attor

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