Hartley Pen Co. v. Lindy Pen Co.

16 F.R.D. 141, 102 U.S.P.Q. (BNA) 151, 1954 U.S. Dist. LEXIS 4190
CourtDistrict Court, S.D. California
DecidedJune 28, 1954
DocketCiv. No. 15367
StatusPublished
Cited by31 cases

This text of 16 F.R.D. 141 (Hartley Pen Co. v. Lindy Pen Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartley Pen Co. v. Lindy Pen Co., 16 F.R.D. 141, 102 U.S.P.Q. (BNA) 151, 1954 U.S. Dist. LEXIS 4190 (S.D. Cal. 1954).

Opinion

MATHES, District Judge.

Plaintiff invokes the equity jurisdiction of this court under 28 U.S.C.A. § 1338(a) seeking an injunction and damages for claimed patent infringement. Rice and Adams Corp. v. Lathrop, 1929, 278 U.S. 509, 515, 49 S.Ct. 220, 73 L.Ed. 480; Briggs v. United Shoe etc. Co., 1915, 239 U.S. 48, 50, 36 S.Ct. 6, 60 L.Ed. 138; Beaunit Mills v. Eday Fabric Sales Corp., 2 Cir., 1942, 124 F.2d 563, 566.

The complaint alleges that U. S. Letters Patent No. 2,498,009 were issued to plaintiff on February 21, 1950, for inventions in “Methods of and Apparatus for assembling ball-pointed writing instruments”; that continuously since the date of issue plaintiff “has been and now is the sole owner of said Letters Patent and all rights thereunder including the right to damages for past infringement thereof”; and that since the date of the patent defendants have infringed, now infringe and threaten continued infringement.

Thus plaintiff asserts claims for infringement arising both before and since January 1, 1953—the effective date of the Patent Codification Act of July 19, 1952, 35 U.S.C.A. § 1 et seq. 66 Stat. 792. And since the saving clause of the Act provides that: “Any rights or liabilities * * * existing under such sections or parts thereof shall not be affected by * * * repeal” of pre-existing portions of the Revised Statutes or Statutes at Large, 66 Stat. at 815, § 5, 35 U.S.C.A. preceding § 1, the old law is applicable to claims arising prior to January 1, 1953, and new Title 35 of the United States Code §§ 1—293 to all claims arising subsequently. General Motors Corp. v. Estate Stove Co., 6 Cir., 203 F.2d 912, certiorari denied, 1953, 346 U.S. 822, 74 S.Ct. 37; Texas-Miller Hat Corp. v. Switzer Bros., 5 Cir., 201 F.2d 824, certiorari denied, 1953, 346 U.S. 821, 74 S.Ct. 36; Gagnier Fibre Products Co. v. Fourslides, Inc., D.C.E.D.Mich.1953, 112 F.Supp. 926, 928-929.

Defendants answered the complaint, raising issues as to validity and infringement. Prior to the time fixed for pre-trial hearing, Kimberly Corporation filed a “motion to intervene as a plaintiff under Rule 24 of Federal Rules of Civil Procedure” upon the ground inter alia that Kimberly claims ownership of the patent in suit.

Among the considerations urged in support of the application for leave to intervene was the fact that defendants had pleaded in an amended answer “that the patent is invalid because of prior public use” by Kimberly.

Rule 24 provides in part:

“(a) Intervention of Right. Upon timely application anyone shall be permitted to intervene in an action: * * * (2) when the representation of the applicant’s interest by existing parties is or may be inadequate and the applicant is or may be bound by a judgment in the action * * *.
“(b) Permissive Intervention. Upon timely application anyone may be permitted to intervene in an action: * * * (2) when an applicant’s claim or defense and the main action have a question of law or fact in common. * * * In exercising its discretion the court shall consider whether the intervention will unduly delay or prejudice the adjudication of the rights of the original parties.”

Fed.Rules Civ.Proc. Rule 24 (a, b), 28 U.S.C.A.

The application was timely under the circumstances. Cf. Pellegrino [146]*146v. Nesbit, 9 Cir., 1953, 203 F.2d 463; Pyle-National Co. v. Amos, 7 Cir., 1949, 172 F.2d 425; Cameron v. President and Fellows of Harvard College, 1st Cir., 1946, 157 F.2d 993; Wolpe v. Poretsky, 79 U.S.App.D.C. 141, 144 F.2d 505, certiorari denied, 1944, 323 U.S. 777, 65 S.Ct. 190, 89 L.Ed. 621; Schmidt v. United States, 9 Cir., 102 F.2d 589, certiorari denied, 1939, 308 U.S. 569, 60 S.Ct. 83, 84 L.Ed. 478; Seligman v. City of Santa Rosa, C.C.N.D.Cal.1897, 81 F. 524.

Assuming for the purposes of the motion that Kimberly’s interest was as alleged [see: Clark v. Sandusky, 7 Cir., 1953, 205 F.2d 915, 918], it appeared that “ ‘the representation of the applicant’s interest by existing parties is * * * inadequate’ ”. Fed.Rules Civ. Proc. rule 24(a) (2), supra, 28 U.S.C.A.; cf. MacDonald v. United States, 9 Cir., 1941, 119 F.2d 821, 827-828; modified and affirmed sub nom. Great Northern Ry. Co. v. United States, 1942, 315 U.S. 262, 62 S.Ct. 529, 86 L.Ed. 836. It appeared also that Kimberly may be bound—if not legally then practically— by the judgment in the action, at least insofar as that judgment should adjudicate the validity of the patent. Cf. Allen Calculators, Inc., v. National Cash Register Co., 1944, 322 U.S. 137, 140-141, 64 S.Ct. 905, 88 L.Ed. 1188.

For as Judge Learned Hand said in A. L. Smith Iron Co. v. Dickson, 2 Cir., 1944, 141 F.2d 3, “every patent owner has an interest in keeping the reputation of his patent from the stain of a judgment of invalidity—an interest which it is proper for a court to recognize.” 141 F.2d at page 6. Accordingly Kimberly’s application for leave to intervene “of right” pursuant to Rule 24 (a) was granted. See: Innis, Speiden & Co. v. Food Machinery Corp., D.C.D.Del. 1942, 2 F.R.D. 261; Johnson v. Georgia Power Co., D.C.N.D.Ga.1942, 2 F.R.D. 282; cf. Sutphen Estates v. United States, 1951, 342 U.S. 19, 72 S.Ct. 14, 96 L.Ed. 19; Barnes v. Alexander, 1914, 232 U.S. 117, 122-123, 34 S.Ct. 276, 58 L.Ed. 530; Smith v. Gale, 1892, 144 U.S. 509, 518, 12 S.Ct. 674, 36 L.Ed. 521; Dowdy v. Hawfield, 88 U.S.App. D.C. 241, 189 F.2d 637, 639, certiorari denied, 1951, 342 U.S. 830, 72 S.Ct. 54, 96 L.Ed. 628; People of State of Cal. v. United States, 9 Cir., 180 F.2d 596, certiorari denied, 1950, 340 U.S. 826, 71 S.Ct. 61, 95 L.Ed. 607; Pure Oil Co. v. Ross, 7 Cir., 1948, 170 F.2d 651, 653; White v. Hanson, 10 Cir., 1942, 126 F.2d 559; MacDonald v. United States, supra, 119 F.2d at page 821; Helene Curtis Industries v. Sales Affiliates, D.C.S.D.N.Y. 105 F.Supp. 886, 897, affirmed 2 Cir., 1952, 199 F.2d 732; 4 Moore, Federal Practice, par. 24.09 at 49-50 (2d ed. 1950).

Kimberly thereupon filed its “Intervener’s Complaint” alleging ownership of the patent and asserting claims for infringement not only against the defendants named in Hartley’s complaint, but also against the plaintiff, Hartley Pen Company, and newly-joined defendants Clarence O. Schrader and Hartley M. Sears.

Plaintiff and defendants-in-intervention Sears and Schrader now move to dismiss “Intervener’s Complaint” upon the grounds: (1) that “the Court lacks jurisdiction over the subject matter,” and (2) that “Intervener’s complaint fails to state a claim upon which relief can be granted.” Fed.Rules Civ.Proc. rule 12(b) (1,6), 28 U.S.C.A.

A pending suit within federal jurisdiction is by definition prerequisite to intervention. See: Rocca v. Thompson, 1912, 223 U.S. 317, 330-331, 32 S.Ct. 207, 56 L.Ed. 453; Hofheimer v. McIntee, 7 Cir., 179 F.2d 789, 792, certiorari denied, 1950, Johnston v. McIntree, 340 U.S. 817, 71 S.Ct. 47, 95 L.Ed. 600; cf. Securities and Exchange Comm. v. U. S. Realty, etc., Co., 1940, 310 U.S. 434, 458-460, 60 S.Ct. 1044, 84 L.Ed. 1293; Cochrane v. Potts, 5 Cir., 1931, 47 F.2d 1026. And it may be stated as a general rule that where in[147]*147tervention is merely permissive, Fed. Rules Civ.Proc. rule 24(b), jurisdiction of the intervener’s claim—like jurisdiction of a permissive counterclaim, see: Moore v. N. Y. Cotton Exchange, 1926, 270 U.S. 593, 609, 46 S.Ct. 367, 70 L.Ed. 750; Lesnik v. Public Industrials Corp., 2 Cir., 1944, 144 F.2d 968, 976, note 10; Celite Corp. v.

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16 F.R.D. 141, 102 U.S.P.Q. (BNA) 151, 1954 U.S. Dist. LEXIS 4190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartley-pen-co-v-lindy-pen-co-casd-1954.