Hooker Chemicals & Plastics Corp. v. Diamond Shamrock Corp.

96 F.R.D. 46, 36 Fed. R. Serv. 2d 787, 1982 U.S. Dist. LEXIS 15595
CourtDistrict Court, W.D. New York
DecidedNovember 3, 1982
DocketNos. Civ-79-714C, Civ-81-794C
StatusPublished
Cited by4 cases

This text of 96 F.R.D. 46 (Hooker Chemicals & Plastics Corp. v. Diamond Shamrock Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hooker Chemicals & Plastics Corp. v. Diamond Shamrock Corp., 96 F.R.D. 46, 36 Fed. R. Serv. 2d 787, 1982 U.S. Dist. LEXIS 15595 (W.D.N.Y. 1982).

Opinion

CURTIN, Chief Judge.

Several motions are pending before the court for decision. The history and background of this case is discussed in prior decisions of this court, 87 F.R.D. 398 (W.D.N.Y.1980); 520 F.Supp. 204 (W.D.N.Y.1981); and in the related decision transferring an additional portion of the case from the District of Delaware, E.I. Du Pont de Nemours v. Diamond Shamrock Corp., 522 F.Supp. 588 (D.Del.1981).

In Civ. 79-714, E.I. du Pont de Nemours & Company [Du Pont] has moved for reconsideration of the court’s order of August 18, 1981, and requests that the court vacate or modify this prior order. Defendant Diamond Shamrock Corporation [Diamond] has moved for leave to file an amended counterclaim in Civ. 79-714. In E.I. du Pont de Nemours v. Diamond Shamrock Corp., Civ. 79-794, Diamond has moved to file an amended counterclaim and has requested that the court consolidate the two cases and that they be tried by a jury.

I. Du Pont’s Motion to Vacate or Modify the Court’s Order of August, 1981

In August of 1981, the court ordered petitioner Du Pont joined as an involuntary plaintiff to oppose Diamond’s counterclaim for the alleged infringement of two of its membrane cell technology patents pursuant to Rule 19(a) of the Federal Rules of Civil Procedure. See Hooker Chemicals v. Diamond Shamrock Corp., 520 F.Supp. 204 (W.D.N.Y.1981). Du Pont bases its motion for reconsideration of this order upon two grounds. First, Du Pont argues that the order has been rendered unnecessary because of the intervening order of Honorable Walter K. Stapleton, transferring the Delaware action to this court. E.I. Du Pont de Nemours v. Diamond Shamrock Corp., 522 F.Supp. 588 (D.Del.1981). Du Pont’s second argument is that its joinder was not proper under Rule 19(a) and should be vacated as a matter of law.

This second contention is predicated upon Du Pont’s claim that it received inadequate notice of the attempt being made to secure its status as a party to the action and was not able to defend against this motion. Du Pont argues that the proper method which should have been followed by the defendant [48]*48in this case was for Diamond to file a complaint against Du Pont in this district for the alleged infringement of the 725 and the 163 Patents. Additionally, Du Pont claims that the court’s decision was erroneous because there was no risk of inconsistent obligations being incurred by reason of two separate decisions from this court and the Delaware court.

In the alternative, should the court adhere to its earlier ruling compelling joinder, Du Pont argues that the court should order a separate trial of the three membrane cell technology patents, and further, that the court condition joinder upon Diamond’s acquiescence to a bench trial, rather than trial before a jury.

Upon consideration of the briefs and affidavits filed, the court finds that Du Pont’s motion for reconsideration of my pri- or order should be denied. Notwithstanding Du Pont’s contentions to the contrary, the record demonstrates that Du Pont had an adequate opportunity to respond and to be heard regarding the Rule 19 joinder motion. Du Pont fully briefed the motion by filing affidavits and memoranda of law, all of which were taken into consideration at the time of the decision. Also, Du Pont’s argument regarding the lack of any serious risk of inconsistent obligations was presented to the court at the time the motion was argued. Du Pont has not supplied any new evidence or advanced another theory which would persuade the court to reconsider the order. Instead, the court is satisfied that the reasoning articulated in the order of August 18, 1981, is correct, and we shall adhere to that order.

As noted above, the case of E.I. du Pont de Nemours & Company v. Diamond Shamrock Corporation was transferred to this district by Judge Stapleton on September 16, 1981, 522 F.Supp. 588 (D.Del.1981). Diamond’s motion to consolidate the Delaware action with Civ. 79-714 requires that this court evaluate all the separate claims presented and decide which of these claims or which actions can be consolidated for trial or for discovery purposes.

II. Diamond's Motion to amend its Answer and for Consolidation of the Two Actions

Diamond seeks leave to amend Counts 5 and 6 of its original counterclaim in order to specify and segregate claims against Du Pont versus those against Hooker Chemicals & Plastics Corporation [Hooker], In addition, Diamond seeks to add a claim charging infringement of another newly issued patent, Patent Registration No. 4,297,-194 (Dotson ’194). Finally, Diamond alleges that Du Pont has intentionally interfered with Diamond’s economic interests in the sale and licensing of membrane cell technology patents and seeks to add a cause of action based upon state law under the pendent jurisdiction doctrine.

Du Pont opposes the motion to amend. Du Pont contends that the amendments will spur needless litigation in that Du Pont will immediately move to contest venue regarding the Dotson ’194 patent. As the patent was not issued until October 27, 1981, Du Pont will argue that no infringement is possible. With regard to Diamond's attempt to assert its state law business interference claims, Du Pont contends that Diamond should not be allowed to assert these claims as counterclaims in Civ. 79-714. Du Pont argues that the issue has already been raised and is before the court in Civ. 81-794, as Diamond raised the issue as a defense to the claimed infringement of the 725 patent. Since Diamond chose not to raise the same argument with respect to the 163 patent and because the claim should be categorized as a compulsory counterclaim to the complaint in Civ. 81-794, Du Pont argues that Diamond should not be allowed to circumvent the procedures of Rule 13 and raise the issue at this time.

Despite the lengthy arguments raised by the plaintiff in its papers, at the heart of Du Pont’s objections and as the basis of its arguments against consolidation of the two cases is the issue of whether the cases should be tried, in whole or in part, to a jury or to the court. Hooker has not demanded a jury trial of any of its claims and thus has waived its rights to a jury trial, [49]*49Rule 38(b), Federal Rules of Civil Procedure. Jury demands have clearly been filed by Diamond with respect to some of its counterclaims, and though Du Pont opposes, Diamond argues that it has not waived its right to a jury trial as to the other claims.

Du Pont insists that Diamond claimed infringement of only two patents, the 725 and the 163 patents in the Delaware action. Diamond has waived its right to a jury trial on any membrane technology patent. Arguably, this would include the recently issued 194 patent if this court orders consolidation of the actions. Du Pont supports this argument with copies of pertinent sections of the proceedings before Judge Stapleton. See Civ. 81-794, Item 9, Appendix 11.

As an alternative to maintaining the cases as entirely separate causes of action, Du Pont proposes that the court order, at the most, limited consolidation.

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96 F.R.D. 46, 36 Fed. R. Serv. 2d 787, 1982 U.S. Dist. LEXIS 15595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hooker-chemicals-plastics-corp-v-diamond-shamrock-corp-nywd-1982.