John Evans Sons, Inc. v. Majik-Ironers, Inc.

95 F.R.D. 186, 36 Fed. R. Serv. 2d 782, 1982 U.S. Dist. LEXIS 14312
District Court, E.D. Pennsylvania·Decided August 23, 1982·No. Civ. A. No. 75-1747·Published·Cited by 21 cases

Opinion

MEMORANDUM

RAYMOND J. BRODERICK, District Judge.

Before the Court is the motion of plaintiff John Evans Sons, Inc. (Evans) to dismiss its complaint. Defendant Majik-Ironers, Inc. (Majik-Ironers) has filed objections to the motion to dismiss and moves this Court to enter an order either denying the motion or granting the motion, provided it is a dismissal with prejudice and with an award of counsel fees and costs. Evans’ motion was the subject of a March 5, 1982 memorandum in which the Court determined that,

[188] In view of the fact that this case was about to go to trial when the motion for voluntary dismissal was filed, and the defendant having filed objections to the motion, the Court has determined that a hearing is necessary so that this Court may ascertain the facts which it should consider in determining whether to grant or deny the motion and, in the event the Court determines that the motion should be granted, whether the dismissal should be “with” or “without” prejudice and whether costs and counsel fees should be awarded and the amount of such reasonable counsel fees.

The Court also noted in its memorandum that there remained to be resolved questions regarding the status of Majik-Ironer’s counterclaim. A hearing was held on Evans’ motion on April 21, 1982. For the reasons which follow the Court has determined to grant Evans’ motion to dismiss with prejudice.

Evans brought this action pursuant to sections 1 and 2 of the Sherman Act and section 4 of the Clayton Act against Majik-Ironers and Ametek, Inc. Plaintiff and Ametek entered into a settlement agreement and the complaint against Ametek has been dismissed with prejudice.

As to Majik-Ironers, plaintiff alleges that it has sustained injuries to its trade and business by virtue of the fraudulent procurement of certain patents for prestressed coil springs by Majik-Ironers and the subsequent use of those patents by Majik-Ironers to exclude others, including plaintiff. Plaintiff also asserts against Majik-Ironers a claim for the common law tort of unfair competition.

Majik-Ironers has filed a counterclaim in which it asks for a declaratory judgment that it did not perpetrate a fraud on the United States Patent and Trademark Office in connection with the procurement of the patents covering prestressed coil springs. Majik-Ironers also asks the Court to declare that it has not violated the antitrust laws nor engaged in acts constituting unfair competition as to Evans. Finally, Majik-Ironers requests costs and attorneys’ fees incurred in its defense of this action and in the prosecution of its counterclaim.

In April. 1977, the parties advised this Court that the issues in this case would be determined by the trial of Ametek v. Pacific Spring Engineering Corp., a case represented to be ready for trial in the United States District Court for the Central District of California and, pursuant to these representations, the Court placed this case in a civil suspense file where it remained until March 15, 1978 when Evans dismissed defendant Ametek with prejudice on the basis of a settlement which had been negotiated in California in connection with Ametek v. Pacific Spring Engineering Corp. In April 1978, Majik-Ironers filed its answer and counterclaim. All through this period it was represented to the Court that settlement negotiations were taking place between Evans and Majik-Ironers and that the remaining issues would probably be settled. It appearing to the Court that settlement efforts had been to no avail, this Court in an order dated July 13,1981 denied the motion of Majik-Ironers to dismiss the complaint, denied the motion of Majik-Ironers to strike the complaint, and denied Evans’ motion to dismiss the counterclaim of Majik-Ironers or in the alternative for summary judgment. A Final Pretrial Conference was eventually scheduled for November 3, 1981.

On October 26, 1981 Evans filed its motion to dismiss the complaint stating that the recovery it had received from Ametek as a result of the settlement in the California litigation had made it economically unworthwhile to pursue its claim against Majik-Ironers. As heretofore stated, Majik-Ironers has objected to the dismissal, contending that dismissal of the action would prejudice Majik-Ironers in that they have already invested a good deal of time and money in defending this action. In light of this alleged prejudice, Majik-Ironers further contends that the Court should deny the motion to dismiss or, if the Court grants Evans’ motion to dismiss, it should dismiss the complaint with prejudice and award Majik-Ironers attorneys’ fees.

[189] A hearing was held on this matter on April 21,1982, at which time Evans’ counsel informed that Court that Evans would consent to a dismissal with prejudice, but opposed an award of attorneys’ fees and requested costs to Majik-Ironers on the ground that Majik-Ironers would not be prejudiced by a dismissal with prejudice and that Majik-Ironers would not have been entitled to attorneys’ fees in this action even if they succeeded in a trial on the merits.

Evans’ motion for a voluntary dismissal was apparently filed pursuant to Fed. R. Civ. P. 41(a)(2) which provides:

(2) By Order of Court. Except as provided in paragraph (1) of this subdivision of this rule [not applicable here], an action shall not be dismissed at the plaintiff’s instance save upon order of the court and upon such terms and conditions as the court deems proper. If a counterclaim has been pleaded by a defendant prior to the service upon him of the plaintiff’s motion to dismiss, the action shall not be dismissed against the defendant’s objection unless the counterclaim can remain pending for independent adjudication by the court. Unless otherwise specified in the order, a dismissal under this paragraph is without prejudice.

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John Evans Sons, Inc. v. Majik-Ironers, Inc., 95 F.R.D. 186, 36 Fed. R. Serv. 2d 782, 1982 U.S. Dist. LEXIS 14312 (E.D. Pa. 1982).

95 F.R.D. 186 (John Evans Sons, Inc. v. Majik-Ironers, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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