In Re Innotron Diagnostics

800 F.2d 1077, 55 U.S.L.W. 2216
CourtCourt of Appeals for the Federal Circuit
DecidedAugust 27, 1986
DocketMisc. 111
StatusPublished
Cited by89 cases

This text of 800 F.2d 1077 (In Re Innotron Diagnostics) 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
In Re Innotron Diagnostics, 800 F.2d 1077, 55 U.S.L.W. 2216 (Fed. Cir. 1986).

Opinion

ORDER

MARKEY, Chief Judge.

This petition for mandamus seeks to overturn an order of the district court separating issues for trial. We deny the petition.

On April 1, 1985, Innotron Diagnostics (Innotron) sued Abbott Laboratories (Abbott) in the U.S. District Court for the Central District of California, No. 85-2207, alleging that Abbott’s marketing activities (contracts tying its reagents to its analyzer, bundling its reagents with other products, and manipulating its analyzer software to exclude Innotron’s reagents) violated Sections 1 and 2 of the Sherman Act, 15 U.S.C. §§ 1, 2 (1982). Jurisdiction was based on 28 U.S.C. §§ 1331, 1332, and 1337.

On April 19, 1985, Abbott sued Innotron in the same court, No. 85-2614, alleging infringement of its U.S. Patent No. 4,492,762 (’762), issued by the Patent and Trademark Office (PTO) January 8, 1985, for a method of testing for substances in a patient’s blood. Jurisdiction was based on 28 U.S.C. § 1338(a).

Innotron moved to dismiss Abbott’s complaint as stating a compulsory counterclaim to its antitrust action. Without ruling specifically on the motion, the district court ordered consolidation of the cases pursuant to Fed.R.Civ.P. 42(a).

Abbott moved to stay Innotron’s antitrust claims and for a separate, early trial of its patent infringement claim. Over In-notron’s objection, the district court ordered that the patent issues “will be severed and tried first before the antitrust issues,” but did not stay discovery in the antitrust case. The court set discovery to close in the patent case in June 1986, and in the antitrust case on August 31, 1987.

Innotron answered Abbott's complaint on July 17, 1985, acknowledging district court jurisdiction based on 28 U.S.C. § 1338(a), denying infringement, and asserting as affirmative defenses that the ’762 patent was invalid under 35 U.S.C. §§ 102(b) and 103, and that the ’762 patent was unenforceable because of inequitable conduct in the PTO (concealment of adverse tests and misrepresentation of prior art), and because the patent had been misused in an illegal tie-in. Innotron accompanied its answer with an antitrust counterclaim in which it repeated verbatim all those affirmative defenses, adding allegations of relevant market, predatory intent, and that Abbott knew its patent was invalid under § 103 when it sued for infringement.

On September 20, 1985, Innotron amended its original antitrust complaint, by adding the same allegations as those in its counterclaim, and demanded a jury trial.

When Innotron refused Abbott’s suggestion that the antitrust counterclaim and the patent issues be separately tried, Abbott moved under Fed.R.Civ.P. 42(b) to “sever” and “separately try” the patent issues.

*1079 On November 25, 1985, a hearing was held at which the court’s “tentative ruling” to “sever” was fully briefed by the parties. 1 Innotron argued that: (1) its affirmative defenses of patent invalidity and un-enforceability were so factually interwoven with its antitrust counterclaim as to preclude effective separation; (2) separation of interwoven issues would be a denial of a fair trial; and (3) separation would be burdensome because this litigation has placed it in straitened financial circumstances.

Abbott responded that denying separation would: (1) require extended delay of the patent trial, because discovery on the increasingly broad and complex antitrust issues was not even scheduled to be complete for well over a year; (2) unduly complicate presentation of the patent issues; and (3) reverse the court’s earlier rulings. Abbott also argued that trial of the patent issues would render it unnecessary to try many of Innotron’s antitrust claims.

On November 27, 1985, the district court ordered the issues in Innotron’s counterclaim separated for trial, Fed.R.Civ.P. 42(b), from the patent issues. It further ordered Innotron’s counterclaim consolidated with Innotron’s original antitrust complaint for trial following trial of the patent issues.

On January 2,1986, Innotron filed a petition for writ of mandamus, 28 U.S.C. § 1651, in the U.S. Court of Appeals for the Ninth Circuit, asking that the district court be ordered to reconsolidate the antitrust counterclaim for trial with the patent issues. Saying the Ninth Circuit had exclusive jurisdiction over its petition, Innotron argued that the separation order was issued under the district court’s inherent authority to govern the order of claims and evidence presented, and was therefore within the Ninth Circuit’s “supervisory authority” over the district courts within its region. On January 17, 1986, Abbott filed a motion to dismiss the petition, saying this court had exclusive jurisdiction.

On March 11, 1986, the Ninth Circuit issued this order:

This request for mandamus relief should be considered by the United States Court of Appeals for the Federal Circuit. The petition is denied without prejudice to renewal if the Federal Circuit determines that it has no jurisdiction. See 28 U.S.C. § 1295; In re Precision Screen Machines, Inc., 729 F.2d 1429 [sic, 1428, 221 USPQ 1034] (Fed.Cir.1984).
Issues Presented
(1) Whether this court has appellate jurisdiction over the case.
(2) Whether this court will entertain the present petition. 2
(3) Whether the petition must be granted because the district court abused its discretion in ordering a separate trial of the patent issues and those raised in Innotron’s antitrust counterclaim.

ANALYSIS

(1) Appellate Jurisdiction Over the Case

The district court’s jurisdiction over Abbott’s patent infringement complaint, *1080 No.

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800 F.2d 1077, 55 U.S.L.W. 2216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-innotron-diagnostics-cafc-1986.