JACOBS WIND ELEC. v. Dept. of Transp.

626 So. 2d 1333, 18 Fla. L. Weekly Supp. 513, 62 U.S.L.W. 2241, 29 U.S.P.Q. 2d (BNA) 1763, 1993 Fla. LEXIS 1556, 1993 WL 380211
CourtSupreme Court of Florida
DecidedSeptember 30, 1993
Docket80247
StatusPublished
Cited by11 cases

This text of 626 So. 2d 1333 (JACOBS WIND ELEC. v. Dept. of Transp.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
JACOBS WIND ELEC. v. Dept. of Transp., 626 So. 2d 1333, 18 Fla. L. Weekly Supp. 513, 62 U.S.L.W. 2241, 29 U.S.P.Q. 2d (BNA) 1763, 1993 Fla. LEXIS 1556, 1993 WL 380211 (Fla. 1993).

Opinion

626 So.2d 1333 (1993)

JACOBS WIND ELECTRIC COMPANY, INC., et al., Petitioners,
v.
DEPARTMENT OF TRANSPORTATION, Respondent.

No. 80247.

Supreme Court of Florida.

September 30, 1993.
Rehearing Denied December 14, 1993.

*1334 Nancy J. Faggianelli of Carlton, Fields, Ward, Emmanuel, Smith & Cutler, P.A., Tampa, and Jerry W. Berkstresser of Shoemaker and Mattare, Ltd., Arlington, VA, for petitioners.

Thornton J. Williams, Gen. Counsel and Gregory G. Costas, Asst. Gen. Counsel, Tallahassee, for respondent.

BARKETT, Chief Justice.

We have for review Department of Transportation v. Padgett,[1] 601 So.2d 1331 (Fla. 2d DCA 1992), which certified a question of great public importance.[2] The issue presented is whether a state court has jurisdiction over takings and conversion claims against the state with respect to property that is the subject of a patent when the state is immune from suit for patent infringement in federal court.

In its complaint,[3] Jacobs Wind Electric Company (Jacobs) alleged that it designed a tidal flow system to prevent the stagnation of water and the accumulation of debris in waterways through the use of a one-way tidal gate. Jacobs patented this flushing system, and under the belief that the patent laws would protect its right to the effective use of or licensing of the system, demonstrated the system to various state officials.

Jacobs alleged that in 1982, the State Department of Transportation (DOT) installed a tidal flow system similar to Jacobs' system on the Courtney Campbell Causeway. Jacobs demanded an after-the-fact license agreement and royalty payment from DOT and sued DOT in federal district court for patent infringement. The district court dismissed the complaint and the United States Circuit Court of Appeals for the Federal Circuit affirmed, concluding that the Eleventh Amendment[4] barred suit against DOT in federal court for patent infringement. Jacobs *1335 Wind Elec. Co. v. Florida Dep't of Transp., 919 F.2d 726, 727 (Fed. Cir.1990).

In holding that federal courts lacked jurisdiction, the Federal Circuit concluded that Jacobs nevertheless had a remedy available in state court:

In any event, Jacobs' contentions that it is left without any remedy in Florida and that a Florida court cannot pass on the validity of a patent are simply wrong ... Jacobs ... may assert a "takings" claim against the state under the Fifth and Fourteenth Amendments. Further, although a state court is without power to invalidate an issued patent, there is no limitation on the ability of a state court to decide the question of validity when properly raised in a state court proceeding.

Id. at 728 (footnote and citations omitted).

After the federal claim was dismissed, Jacobs sued DOT in the Hillsborough County Circuit Court, alleging conversion and the taking of property without due process and just compensation. The circuit court denied DOT's motion to dismiss for lack of jurisdiction, and DOT filed a petition for writ of prohibition with the Second District Court of Appeal, arguing that patent infringement disputes are within the exclusive subject matter jurisdiction of the federal courts. The district court granted DOT's petition, holding that Jacobs' suit was founded on a breach of rights created by the patent laws, so that the circuit court was without subject matter jurisdiction. Department of Transportation v. Padgett. Thus, Jacobs was left without a right to seek a remedy in either state or federal court. We quash the district court's decision because we conclude Congress never intended to preclude these claims from state court review even though they involve a patent.

The present case involves the confluence of federal and state law. Under the United States Constitution's supremacy clause, the state cannot assert jurisdiction where Congress clearly intended to preempt a field of law. U.S. Const. art. VI, cl. 2; Chicago & N.W. Transp. Co. v. Kalo Brick & Tile Co., 450 U.S. 311, 101 S.Ct. 1124, 67 L.Ed.2d 258 (1981). However, Congress can preempt portions of a field of law without preempting the field of law in its entirety, thereby leaving the state free to act when in so doing the state does not impede the objectives of Congress. 450 U.S. at 317, 101 S.Ct. at 1130. Preemption thus does not preclude all relief, but merely limits relief available to the extent that Congress intended to preclude the application of state law.

Congress gave federal courts exclusive jurisdiction over claims "arising under" the patent laws for parties who fall within the reach of Congress's intent.[5] However, state courts may decide certain cases even though they involve federal patent law. E.g., In re Oximetrix, Inc., 748 F.2d 637, 641 (Fed. Cir.1984).

For example, preemption does not bar state jurisdiction when the complaint relies on "reasons completely unrelated to the provisions or purposes of [the patent laws] why the [plaintiff] may or may not be entitled to the relief it seeks." Christianson v. Colt Indus. Operating Corp., 486 U.S. 800, 810, 108 S.Ct. 2166, 2174, 100 L.Ed.2d 811 (1988) (brackets in original) (quoting Franchise Tax Bd. v. Construction Laborers Vacation Trust, 463 U.S. 1, 26, 103 S.Ct. 2841, 2855, 77 L.Ed.2d 420 (1983)). See, e.g., Lear, Inc. v. Adkins, 395 U.S. 653, 89 S.Ct. 1902, 23 L.Ed.2d 610 (1969) (state court must consider the validity of a patent in order to determine whether a breach of an agreement occurred); Intermedics Infusaid, Inc. v. Regents of Univ. of Minn., 804 F.2d 129 (Fed. Cir.1986) (complaint seeking declaratory judgment that a licensing agreement for use of a patent is enforceable was properly filed in state court); cf. Christianson (complaint alleging anti-trust violations and intentional interference with business relationships, with respect to a patented product, did not "arise under" the patent laws).

Likewise, state courts surely have jurisdiction when Congress did not or could not *1336 preempt the cause of action. For example, in Korman v. Iglesias, 736 F. Supp. 261 (S.D.Fla. 1990), the court held that the federal Copyright Act did not preempt a Florida civil theft claim by a co-author because the Copyright Act does not provide for suits against co-authors. The court held that because there was no federal cause of action, there was no preemption:

While Congress intended to preempt the field of state law where the Copyright Act applies, the Copyright Act neglected to provide for remedies between co-authors... .

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626 So. 2d 1333, 18 Fla. L. Weekly Supp. 513, 62 U.S.L.W. 2241, 29 U.S.P.Q. 2d (BNA) 1763, 1993 Fla. LEXIS 1556, 1993 WL 380211, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobs-wind-elec-v-dept-of-transp-fla-1993.