Hopkins Manufacturing Corp. v. Cequent Performance Products, Inc.

223 F. Supp. 3d 1194, 2016 U.S. Dist. LEXIS 171620, 2016 WL 7188281
CourtDistrict Court, D. Kansas
DecidedDecember 12, 2016
DocketCase No. 14-2208-JAR
StatusPublished
Cited by1 cases

This text of 223 F. Supp. 3d 1194 (Hopkins Manufacturing Corp. v. Cequent Performance Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hopkins Manufacturing Corp. v. Cequent Performance Products, Inc., 223 F. Supp. 3d 1194, 2016 U.S. Dist. LEXIS 171620, 2016 WL 7188281 (D. Kan. 2016).

Opinion

MEMORANDUM AND ORDER

JULIE A. ROBINSON, UNITED STATES DISTRICT JUDGE

Plaintiff Hopkins Manufacturing Corporation (“Hopkins”) filed this single-count action for alleged patent infringement of U.S. Patent No. 6,837,551 (“’551 Patent”). On February 10, 2015, this Court granted a motion to stay the case pending inter partes review (“IPR”) of the patent by the United States Patent and Trademark Office (“USPTO”). This matter is before the Court on Defendant Cequent Performance Products, Inc.’s (“Cequent”) Motion for Summary Judgment and Motion to Lift the Stay (Doc. 27). The motions are fully briefed and the Court is prepared to rule. As described more fully below, Defendant’s Motion for Summary Judgment and Motion to Lift the Stay are granted.

I. Legal Standard

Summary judgment is appropriate if the moving party demonstrates that there is no genuine dispute as to any material fact and that it is entitled to judgment as a matter of law.1 In applying this standard, the court views the evidence and all reasonable inferences therefrom in the light most favorable to the nonmoving party.2 “There is no genuine issue of material fact unless the evidence, construed in the light most favorable to the nonmoving party, is such that a reasonable jury could return a verdict for the nonmoving party.”3 A fact is “material” if, under the applicable substantive law, it is “essential to the proper disposition of the claim.” 4 An issue of fact is “genuine” if “the evidence is such that a reasonable jury could return a verdict for the non-moving party.”5

The moving party initially must show the absence of a genuine issue of material fact and entitlement to judgment as a matter of law.6 In attempting to meet this standard, a movant that does not bear the ultimate burden of persuasion at trial need not negate the other party’s claim; rather, the movant need simply point out to the court a lack of evidence regarding an essential element of the other party’s claim.7

Once the movant has met this initial burden, the burden shifts to the nonmov-ing party to “set forth specific facts showing that there is a genuine issue for trial.” 8 The nonmoving party may not simply [1197]*1197rest upon its pleadings to satisfy its burden.9 Rather, the nonmoving party must “set forth specific facts that would be admissible in evidence in the event of trial from which a rational trier of fact could find for the nonmovant10

The facts “must be identified by reference to an affidavit, a deposition transcript, or a specific exhibit incorporated therein.” 11 Rule 56(c)(4) provides that opposing affidavits must be made on personal knowledge and shall set forth such facts as would be admissible in evidence.12 The nonmoving party cannot avoid summary judgment by repeating conclusory opinions, allegations unsupported by specific facts, or speculation.13

Finally, summary judgment is not a “disfavored procedural shortcut;” on the contrary, it is an important procedure “designed to secure the just, speedy and inexpensive determination of every action.”14 In responding to a motion for summary judgment, “a party cannot rest on ignorance of facts, on speculation, or on suspicion and may not escape summary judgment in the mere hope that something will turn up at trial.”15

II. Uncontroverted Facts

The following facts are uncontroverted, stipulated to, or viewed in the light most favorable to Plaintiff.

Hopkins filed this single-count action against Cequent for alleged infringement of United State Patent No. 6,837,551. On January 23, 2015, Cequent filed a petition for IPR of eight claims of the ’551 Patent with the USPTO.16 On August 17, 2015, the USPTO granted Cequent’s petition and instituted IPR of the eight claims of the ’551 Patent.

On December 7, 2015, Hopkins filed a request for adverse judgment in the IPR proceedings in accordance with 37 C.F.R. § 42.73(b)(4), and in its notice, Hopkins acknowledged that “such abandonment will lead to cancellation of the claims involved in this inter partes review.”17 On December 11, 2015, the USPTO granted Hopkins’ request, entered judgment adverse to Hopkins, and ordered that “claims 1-8 of U.S. Patent No. 6,837,551 B2 shall be canceled.” 18

On February 10, 2016, Cequent forwarded to Hopkins what it called “a draft motion for consent judgment with the [1198]*1198judgment for [Hopkins’] review.”19 The transmittal email requested Hopkins to “[p]lease let us know whether you agree to this language or have comments.” Ce-quent followed up on February 18, 2016 by email requesting that Hopkins “[p]lease let us know if the draft is acceptable, otherwise we will have to move for summary judgment against Hopkins.”20

Later in the day on February 18, 2016, Hopkins responded with its comment and attached a redlined version of a proposed stipulation of dismissal. The transmittal email read:

Attached is a redline version of what Hopkins is willing to stipulate to. When we had our phone call, we did not discuss a consent judgment, Dave stated you needed an express acknowledgment that Cequent is the prevailing party in the stipulation. We have included such in this version along with a little more factual context and we don’t believe a consent judgment is appropriate. Further, the attached will be self-executing and require no further action by the Court on this issue. Given what Hopkins is willing to stipulate to in this version, a motion for summary judgment by Ce-quent would be unnecessarily complicating the matter and driving up costs for no reason we can discern.21

Cequent did not respond to Hopkins’ email or request any changes to Hopkins’ proposed stipulation of dismissal before filing its Motion to Lift the Stay and Motion for Summary Judgment on February 24, 2016.22

III. Discussion

The only issue to resolve in this motion for summary judgment is whether Defendant is entitled to summary judgment in its favor in order to proceed as the prevailing party for purposes of seeking attorney’s fees under § 286 of the Patent Act.23 The parties both agree that the merits of the patent infringement case were resolved with the adverse judgment entered against Plaintiff at the USPTO.24 However, Defendant argues that a final judgment on the merits is necessary to establish it as the prevailing party; Plaintiff argues that a stipulation of dismissal under Fed. R. Civ. P. 41(a)(l)(A)(ii) is sufficient in this case.

Plaintiff offers three arguments for denial of summary judgment under the cir[1199]*1199cumstances of this case.

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223 F. Supp. 3d 1194, 2016 U.S. Dist. LEXIS 171620, 2016 WL 7188281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hopkins-manufacturing-corp-v-cequent-performance-products-inc-ksd-2016.