In re Western Electric Co.

415 F. Supp. 378, 1976 U.S. Dist. LEXIS 15112
CourtUnited States Judicial Panel on Multidistrict Litigation
DecidedMay 13, 1976
DocketNo. 244
StatusPublished
Cited by3 cases

This text of 415 F. Supp. 378 (In re Western Electric Co.) is published on Counsel Stack Legal Research, covering United States Judicial Panel on Multidistrict Litigation primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Western Electric Co., 415 F. Supp. 378, 1976 U.S. Dist. LEXIS 15112 (jpml 1976).

Opinion

OPINION AND ORDER

Before JOHN MINOR WISDOM, Chairman, and EDWARD WEINFELD*, EDWIN A. ROBSON, WILLIAM H. BECKER, JOSEPH S. LORD, III*, STANLEY A. WEIGEL, and ANDREW A. CAFFREY **, Judges of the Panel.

PER CURIAM

This litigation consists of eight actions instituted by Western Electric Company, [379]*379Inc. in five various federal forums: three in the District of Delaware; two in the Northern District of Texas; and one each in the Northern District of California, the Eastern District of Virginia and the United States Court of Claims. Each of the seven district court actions was commenced against one of seven different companies, while the Court of Claims action is against the United States, with Stewart-Warner Corp.; Tele-dyne, Inc.; TRW, Inc.; Rockwell International Corp.; and Harris Corp. named as third-party defendants. These actions seek damages for the alleged infringement of the “Derick” patent, which involves a process for manufacturing semiconductor devices such as transistors, diodes and integrated circuits.

Mostek. Corp., a defendant in one of the Northern District of Texas actions, moves the Panel for an order transferring the Texas, Virginia and California actions to the District of Delaware for coordinated or consolidated pretrial proceedings pursuant to 28 U.S.C. § 1407 with the three actions pending there; Mostek takes no position regarding transfer of the Court of Claims action. Defendant United States moves the Panel for an order transferring all the district court actions, plus the Court of Claims action, to a single district under Section 1407. If the Panel decides that it does not have the authority to transfer actions pending in the Court of Claims, the United States moves, in the alternative, for the Panel’s permission to participate voluntarily, with the concurrence and leave of the Court of Claims, in any Section 1407 activities that may be ordered for this litigation. Defendant Stewart-Warner favors transfer of all eight actions. Defendants Teledyne and Intersil, Inc. support transfer of all actions except Rockwell, which is pending in the Northern District of Texas. Plaintiff Western opposes transfer of any action in this litigation and, alternatively, suggests the Northern District of Texas as the most appropriate transferee forum. Defendant Rockwell opposes transfer of its action only, and expresses no sentiments concerning transfer of the other actions.

We find that these actions involve common questions of fact and that, with the exception of Rockwell and the Court of Claims action, their transfer to the Eastern District of Virginia for coordinated or consolidated pretrial proceedings pursuant to Section 1407 will best serve the convenience of the parties and witnesses and promote the just and efficient conduct of this litigation.

I. The Rockwell Action

While seven of the actions before us involve only the Derick patent, Rockwell is much more extensive. Western’s first count. in its complaint against Rockwell seeks royalties under a 1970 Patent License Agreement between Collins Radio Co. and Western, which allegedly survived the 1973 merger between Collins and Rockwell. In another count, Western charges defendant with infringing nine patents, one of which is the Derick patent. In response, Rockwell filed two counterclaims. One avers that Western has infringed five Rockwell patents. The other principally seeks a declaratory judgment that the 1970 Patent License Agreement between Collins and Western did not remain in effect after the merger of Collins and Rockwell. Western in turn counterclaimed charging Rockwell with infringing twelve other patents.

Several motions are pending in Rockwell. One is a motion by Western for partial summary judgment that the 1970 Patent License Agreement between Collins and Western remained in effect after the merger of Collins and Rockwell, whereby Rockwell succeeded to Collins’ (1) liabilities, one being the duty to pay royalties to Western for a license to use certain Western patents, and (2) obligations, one being the right of Western to utilize certain Rockwell communications systems patents royalty-free. Rockwell has cross-moved for summary judgment on its declaratory judgment counterclaim and for summary judgment that Western is not licensed under any patents alleged in Rockwell’s patent infringement counterclaim. In addition, Rockwell has moved to dismiss Western’s patent infringe[380]*380ment claim and counterclaim because of improper venue.

The parties opposing transfer of Rockwell, which include all parties in that action, argue that its transfer is inappropriate because individual factual questions overwhelmingly predominate over any common factual issues it may share with the other actions in this litigation. These parties contend that, unlike the thrust of the other actions focusing upon defendants’ alleged infringement of the Derick patent, Rockwell is distinguishable as follows: Rockwell is preliminarily a breach of contract dispute centering upon the question whether the 1970 Patent License Agreement between Collins and Western survived the 1973 merger of Collins and Rockwell; if Rockwell is held to be licensed under Western’s patents, the infringement issues need not be reached; should Rockwell be found not licensed under Western’s patents, the venue issue must then be resolved because Rockwell claims that any of its allegedly infringing acts occurred in California, not Texas; if venue is found to lie in the present court, only then would the infringement issues be considered, with the Derick patent being only one of 26 patents involved.

We are persuaded by these arguments and find that the breadth of Rockwell in comparison with all the other actions before us warrants its exclusion from coordinated or consolidated pretrial proceedings in order to best promote the expeditious processing of Rockwell and the rest of the litigation as well.

II. The Court of Claims Action

The United States and its supporters argue that the Court of Claims action should be transferred along with the rest of the litigation because this action shares common questions of fact with the others and its transfer will further the purposes of 28 U.S.C. § 1407. The United States devotes considerable argument to the proposition that the Panel is authorized under Section 1407 to transfer actions pending in the Court of Claims. Western, on the other hand, strenuously contends that the Panel is not empowered by the governing statute to transfer such actions.

The Panel has never before been faced with, the question of whether to transfer an action pending in the Court of Claims. In the Technograph litigation, however, the Panel’s predecessor, the Coordinating Committee for Multiple Litigation, successfully engineered coordination of pretrial proceedings among a Court of Claims action and related actions pending in various federal district courts. See generally 114 Cong.Rec. 4926 (daily ed. March 4, 1968). In view of the successful experience in Technograph,

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Bluebook (online)
415 F. Supp. 378, 1976 U.S. Dist. LEXIS 15112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-western-electric-co-jpml-1976.