James S. Huston and Herman Oppermann v. Robert C. Ladner, Robert E. Bird and Karl Hardman

973 F.2d 1564, 23 U.S.P.Q. 2d (BNA) 1910, 1992 U.S. App. LEXIS 20509, 1992 WL 210437
CourtCourt of Appeals for the Federal Circuit
DecidedSeptember 1, 1992
Docket91-1515
StatusPublished
Cited by6 cases

This text of 973 F.2d 1564 (James S. Huston and Herman Oppermann v. Robert C. Ladner, Robert E. Bird and Karl Hardman) 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
James S. Huston and Herman Oppermann v. Robert C. Ladner, Robert E. Bird and Karl Hardman, 973 F.2d 1564, 23 U.S.P.Q. 2d (BNA) 1910, 1992 U.S. App. LEXIS 20509, 1992 WL 210437 (Fed. Cir. 1992).

Opinions

LOURIE, Circuit Judge.

Huston appeals from the Board of Patent Appeals and Interferences decision in Patent Interference 102,562 granting summary judgment in favor of Ladner. Because we find that Huston failed to show that the Board abused its discretion in holding that the appellant did not show “good cause” under 37 C.F.R. § 1.617(b) to justify submission of additional evidence, we affirm.

BACKGROUND

The present dispute involves an interference between Ladner’s U.S. Patent 4,946,-778 (the '778 patent), assigned to Genex Corporation, and Huston’s U.S. Patent Application 07/052,800 (the '800 application), assigned to Creative Biomolecules, Inc. (Creative). The subject matter of the interference concerns a method of producing a single chain polypeptide that binds antigen and is defined by a single count.

Huston provoked the interference. Because his effective filing date was more than three months subsequent to that of Ladner, Huston was required to submit evidence under 37 C.F.R. § 1.608(b).1 This material was filed by Creative’s then-patent counsel and it attempted to demonstrate a prima facie case for priority over Ladner. The Examiner concluded that it did not do so. The Examiner declared the interference and simultaneously issued to Huston an Order to Show Cause under 37 C.F.R. § 1.617(a) why summary judgment should not be entered against him.2 Huston filed his response to the Order pursuant to 37 C.F.R. § 1.617(b),3 accompanied by additional evidence of priority in the form of declarations by the inventors and corroborating witnesses. The response included the declarations of the president of Creative, Charles Cohen, and substituted lead counsel for Huston, James Haley. It attempted to show “good cause” why the additional evidence was not submitted with the initial priority showing by asserting that Creative’s attorney misrepresented his competence and ability in interference matters and was grossly negligent in filing the original submission.

A hearing was conducted before the Board, which affirmed the Examiner’s decision that the original showing was inadequate. The Board stated that it could not consider the additional evidence submitted in response to the Order because Huston [1566]*1566had failed to show good cause why the evidence was not presented initially. The Board specifically rejected Huston’s argument that there was good cause for not presenting the evidence earlier. The Board stated that the response did not include a showing that the additional evidence was unavailable and that it could not have been submitted with the initial showing.

DISCUSSION

The issue presented in this appeal is whether the Board abused its discretion in holding that Huston did not show the required “good cause” for failing to present the additional evidence with the initial priority showing submitted under 37 C.F.R. § 1.608(b). “The determination whether a party seeking to initiate an interference has shown ‘good cause’ for his failure to present the additional evidence at the time of his initial submission is a matter within the discretion of the Board.” Hahn v. Wong, 892 F.2d 1028, 1034, 13 USPQ2d 1313, 1318 (Fed.Cir.1989). An abuse of discretion may be found when the Board’s decision is clearly unreasonable, based on an erroneous conclusion of law or a clearly erroneous finding, or the record is devoid of any evidence upon which the Board rationally could have based its decision. See A.C. Aukerman Co. v. R.L. Chaides Constr. Co., 960 F.2d 1020, 1039, 22 USPQ2d 1321, 1333 (Fed.Cir.1992) (in banc).

Huston contends that he was entitled to supplement the original showing because the original attorney misrepresented to Creative his competence and ability to present Huston’s prima facie showing under 37 C.F.R. § 1.608(b) and because he acted in a reckless and grossly negligent manner in filing the original evidence. The Board carefully considered these arguments and found that Huston had failed to satisfy the good cause requirement.

The Board specifically found that Huston’s claim of misrepresentation by the attorney as to his ability to make a prima facie showing of priority was unsupported by the evidence. Huston v. Ladner, Interference No. 102,562, Slip Op. 13-14 (Bd. Pat.App.Int.1991). The Board went on to find that the attorney “did not appreciate the rule with regard to making the original showing complete and the substantive requirements of the law.” Id. The Board held that this dispute was controlled by the rule set forth in Hahn, where we stated, “ignorance by a party or counsel of the provisions of the rules or the substantive requirements of the law does not constitute good cause” why the additional evidence was not presented initially. Hahn, 892 F.2d at 1034, 13 USPQ2d at 1319.

The Board also found that Huston’s response to the Order did not include any showing that the additional evidence was unavailable and could not have been submitted with the initial showing, Huston v. Ladner, Interference No. 102,562, Slip Op. 11 (Bd.Pat.App.Int.1991). The Board properly recognized that if the evidence was not available when the original showing was filed, this would have been a valid excuse for not filing the evidence. However, because Huston did not show this excuse or any other valid excuse, the Board held that the additional evidence must be excluded. Id. at 14.

The Board recognized that the new interference rules embodied a policy of the Patent and Trademark Office (PTO) to ensure prompt resolution of patent interferences by encouraging applicants to prepare an original showing which is as complete as possible. The rules were intended to reduce the time and expense for the parties and the Board by imposing a stricter standard for filing additional evidence after entry of an order to show cause is made. 49 Fed.Reg. 48416, 48423 (December 12, 1984), Off.Gaz.Pat. Office 385, 392 (Jan. 29, 1985). In rejecting Huston’s argument, the Board indicated that it relied on this policy and was furthering it. Huston v. Ladner, Interference No. 102,562, Slip Op. 13 (Bd. Pat.App.Int.1991). We see no error in the Board’s or the examiner’s implementation of the rules.

Huston argues that Creative should not suffer the consequences of his attorney's acts because Huston did not knowingly and freely acquiesce in his attorney’s conduct. [1567]*1567Huston argues that even though Cohen’s affidavit makes it clear that he took care in selecting his attorney to handle the interference, Creative should not be held responsible for his attorney’s acts. This argument runs counter to established Supreme Court precedent holding that:

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973 F.2d 1564, 23 U.S.P.Q. 2d (BNA) 1910, 1992 U.S. App. LEXIS 20509, 1992 WL 210437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-s-huston-and-herman-oppermann-v-robert-c-ladner-robert-e-bird-cafc-1992.