Huster v. J2 Cloud Services, Inc.

682 F. App'x 910
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 29, 2017
Docket2016-1639
StatusUnpublished
Cited by4 cases

This text of 682 F. App'x 910 (Huster v. J2 Cloud Services, Inc.) 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
Huster v. J2 Cloud Services, Inc., 682 F. App'x 910 (Fed. Cir. 2017).

Opinion

Taranto, Circuit Judge

Phyllis Huster asserts that she is the inventor or co-inventor of certain systems and methods claimed in nine patents—U.S. Patent Nos. 5,675,507, 5,870,549, 6,350,066, 6,564,321, 6,857,074, 7,895,306, 7,836,141, 7,895,313, and 7,934,148. In August 2013, Ms. Huster sued Charles R. Bobo, II, who is the sole person named as inventor on the patents, and several alleged patent assignors, assignees, and licensees. She asserted a claim for correction of inventor-ship, under 35 U.S.C. § 256, and various state-law claims. The Northern District of Georgia dismissed Ms. Huster’s correction-of-inventorship claim for lack of standing and held, on summary judgment, that the applicable statute of limitations barred the state-law claims relevant here. We modify the dismissal of Ms. Huster’s correction-of-inventorship claim to be without prejudice and affirm the judgment as modified.

I

The ’507, ’549, ’066, ’321, ’074, ’306,141,-’313, and 148 patents describe and claim systems and methods for storing, delivering, and managing electronic messages. The patents discuss, among other things, “facsimile messages” transmitted over “the Internet.” See, e.g., ’507 patent, col. 5, lines 15-16. The patents issued from continuations of U.S. Patent Application No. 08/431,716, and they all name Charles R. Bobo, II, as the inventor. The ’716 patent application claims a filing date of April 26, 1995.

Ms. Huster alleges that before December 1994, she “conceived the idea of transmitting and storing telefax messages digitally, via e-mail rather than as packets via the switched telephone network” and “built a prototype for a system to allow voicemail and faxes to be centrally received, stored, and then distributed ... to facilitate one or more people’s access to the information in those faxes and voice-mails.” See Corrected Amended Compl. ¶ 14, Huster v. j2 Global Commc’ns, Inc., No. 1:14-cv-3304-ELR (N.D. Ga. Feb. 12, 2015), ECF No. 128. She further alleges that in December 1994, Mr. Bobo retained her as a consultant and shareholder for NetOffice, Inc., which he operated. Id. ¶ 15. According to Ms. Huster, Mr. Bobo was “not familiar” with the technology related to the invention. Id. ¶ 16.

In January 1995, Ms. Huster and Mr. Bobo allegedly agreed to be named as co-inventors on a patent application for the claimed inventions (which was filed as the ’716 application). Id. ¶ 18. Ms. Huster asserts that Mr. Bobo expressed that he was “very reluctant to file any patent applications” because of “cost” and “time limitations” and that, as a result, she arranged financing for the application and conducted initial contacts with patent counsel. M ¶ 19. Shortly thereafter, Ms. Huster took employment elsewhere in Atlanta, and later she moved outside Georgia. Id. ¶ 20. According to Ms. Huster, Mr, *913 Bobo and patent counsel stopped communicating with her, and she concluded that they had not proceeded with the application because of Mr. Bobo’s “reluctance.” Id. ¶ 21. As indicated on the patents, the initial patent application was filed in 1995, and the last was filed in 2006. The patents issued between 1997 and 2011. Ms, Huster claims that she first learned of (some of) the patents in March 2010, when she was contacted by an attorney representing a party that had been sued for infringement. Id. ¶ 29.

In February 2012, before filing the present case, Ms. Huster assigned her interest in the patents to “Phyllis Anke Technologies, LLC.” J.A. 781-85. Ms. Huster acknowledges that “PA Technologies LLC” and “Phyllis Anke Technologies, LLC” are the same entity. See Appellant’s Reply Br. 6-8.

In August 2013, Ms. Huster brought this suit in the Northern District of Illinois against Mr. Bobo and several companies— j2 Cloud Services, Inc., Advanced Messaging Technologies, Inc.' (AMT), Unified Messaging Solutions, LLC, and Acacia Patent Acquisition, LLC. The corporate defendants are alleged assignors, assignees, or licensees of the patents. Ms. Huster asserted a correction-of-inventorship claim under 35 U.S.C. § 256, see Chou v. Univ. of Chi., 254 F.3d 1347, 1357 (Fed. Cir. 2001), as well as unenumerated claims under state law. The court transferred the case to the Northern District of Georgia. In February 2015, Ms. Huster amended her complaint to state claims for fraudulent concealment, breach of fiduciary duty, unjust enrichment, breach of contract, breach of private duty, conversion, breach of duty of good faith and fair dealing, and attorney’s fees. See Corrected Amended Compl. ¶¶ 43-77.

In March 2014, while the present case was pending, a Washington superior court entered a default judgment for $39,393.49 against Ms. Huster in favor of John-Cros-san, her former attorney. See Default J., Crossan Intellectual Prop. Law, LLC v. Huster, No. 14-2-05468-8 SEA (Wash. Super. Ct. Mar, 4,2014), Dkt. No. 11.,In June 2014, the court issued a conditional “charging order” divesting Ms. Huster of “any right, title, and interest, whether direct or indirect, in PA Technologies LLC” until the satisfaction of the judgment; ■ Order Charging Debtors’ Interest in Companies 2, Crossan Intellectual Prop. Law, No. 14-2-05468-8 SEA (Wash. Super. Ct. June 12, 2014), Dkt. No. 30 (Charging Order). 1

In November 2015, the district court in this case, acting under Federal Rule of Civil Procedure 12(b), dismissed Ms. Hus-ter’s correction-of-inventorship claim for lack of Article III standing. The court also dismissed certain, state-law claims for failure to state a claim. See Order, Huster, No. l:14-cv-3304-ELR (N.D. Ga. Nov. 12, 2015), ECF No. 164 (Dismissal Order). With respect to Ms. Huster’s correction-of-inventorship claim, the court concluded that the Washington state court’s charging order had divested Ms. Huster of any economic interest in the patents.- Id. at 8-10. The court also concluded that Ms. Huster had not pleaded sufficient facts to establish a concrete reputational interest. Id. at 10-11. With respect to Ms. Huster’s state-law claims, the court dismissed all. of Ms. Hus-ter’s claims against the corporate defendants and her conversion and attorney’s fees claims against Mr. Bobo. Id. at 12-22. The court converted Mr. Bobo’s motion to *914 dismiss Ms. Huster’s remaining claims into a motion for summary judgment. Id. at 23-24.

In January 2016, the court, acting under Federal Rule of Civil Procedure 56, granted summary judgment for Mr. Bobo on the remaining state-law claims, which it concluded were barred by the statute of limitations. See Order, No.

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