Johns-Manville Corp. v. Guardian Industries Corp.

116 F.R.D. 97, 4 U.S.P.Q. 2d (BNA) 1723, 1987 U.S. Dist. LEXIS 4665
CourtDistrict Court, E.D. Michigan
DecidedMay 29, 1987
DocketCiv. A. No. 81 70248
StatusPublished
Cited by9 cases

This text of 116 F.R.D. 97 (Johns-Manville Corp. v. Guardian Industries Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns-Manville Corp. v. Guardian Industries Corp., 116 F.R.D. 97, 4 U.S.P.Q. 2d (BNA) 1723, 1987 U.S. Dist. LEXIS 4665 (E.D. Mich. 1987).

Opinion

MEMORANDUM OPINION AND ORDER

PHILIP PRATT, Chief Judge.

1. INTRODUCTION

This is a patent infringement action which was filed on January 23, 1981. The non-jury trial began on October 19, 1981, consuming 34 days of trial and producing 4,143 pages of transcript and 283 exhibits. Final arguments were heard on June 10, 1982. On December 15, 1983 this court issued an opinion finding the plaintiff’s patent to be valid, that the defendants had infringed, and enjoining the defendants from any further infringement. Johns-Manville v. Guardian Industries, 586 F.Supp. 1034 (E.D.Mich.1983), modified, 223 U.S.P.Q. 974. The Federal Circuit affirmed this judgment on April 24, 1985. 770 F.2d 178 (Fed.Cir.1985).

Pursuant to stipulation of the parties, the liability and damages issues were bifurcated, with the 1983 judgment dealing only with liability. The parties are still in the accounting phase. In November of 1985, the plaintiff amended its complaint, alleging that the defendants were now using a modified version of its adjudicated infringing machinery, which also infringed on the patent. On June 23, 1986, the plaintiff moved to enjoin the defendants from continuing to use this modified process. At a status conference called to discuss this matter, the defendants revealed that they planned to file motions to reopen the 1983 judgment and amend their answer to the amended complaint. These motions were filed, and are the subject of this opinion. The gravamen of the motion to reopen the 1983 judgment is that the defendants have discovered new evidence, including evidence of fraud on the part of the plaintiff, which calls the validity of the patent in suit into question. The motion to amend seeks to insert essentially the same allegations into the defendants’ answer to the plaintiff's amended complaint by challenging the validity of the patent-in-suit.

2. STANDARD OF REVIEW

The first issues faced by the court are by what authority can it alter the 1983 judgment and what standard should be applied in doing so. The defendants argue that the 1983 judgment was interlocutory, and that the court should exercise its inherent power to modify such judgments. Plaintiff counters that the judgment was final, and [100]*100thus any motion to alter must be brought under Fed.R.Civ.P. 60(b), which contains a one year statute of limitations. Thus, the plaintiff argues, the defendants’ motion to reopen is untimely.

Fed.R.Civ.P. 60(b) provides that: On motion and upon such terms as are just, the court may relieve a party or his legal representative from a final judgment, order, or proceeding for the following reasons: (1) mistake, inadvertence, surprise or excusable neglect; (2) newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party; ... or (b) any other reason justifying relief from the operation of the judgment. The motion shall be made within a reasonable time, and for reasons (1), (2), and (3) not more than one year after the judgment____

Rule 60(b) applies only to final judgments, not interlocutory orders. 7 Moore’s Federal Practice, ¶ 60.20, p. 170. A final judgment or order is one that conclusively determines the rights of the parties, leaving nothing for the court to do but execute the order. Coopers & Lybrand v. Livesay, 437 U.S. 463, 467, 98 S.Ct. 2454, 2457, 57 L.Ed.2d 351 (1978). Ordinarily, in a bifurcated trial, the judgment on liability remains interlocutory, and subject to the trial court’s modification during the remedial stage of the litigation. See, e.g., Segar v. Smith, 738 F.2d 1249, 1285 (D.C.Cir.1984), cert. denied, 471 U.S. 1115, 105 S.Ct. 2357, 86 L.Ed.2d 258 (1985). Thus on its face, this court’s 1983 judgment was interlocutory, and not subject to the strictures of Rule 60(b).

The plaintiff argues that the affirmance by the Federal Circuit, along with the statutory grant of jurisdiction to the Federal Circuit, dictate the conclusion that the judgment was final. Appeals to the Federal Circuit are governed by 28 U.S.C. § 1292(c), which provides for:

(2) ... an appeal from a judgment in a civil action for patent infringement which would otherwise be appealable to the United States Court for the Federal Circuit and is final except for an accounting.

The Federal Circuit, in rebuffing an appellee’s attempt to have an appeal from a liability judgment dismissed as being interlocutory stated:

In the present appeal, no additional proceedings are contemplated by the district court, other than an accounting. All substantive issues have been fully adjudicated and there is no question respecting the finality of the judgment as to liability; all substantive issues have been resolved.

H.A. Jones, Inc. v. KSM Fastening Systems, 745 F.2d 630, 632 (Fed.Cir.1984). Plaintiff argues that this case stands for the proposition that liability judgments in patent cases are final. One district court has taken the position advocated by the plaintiff, Valmont Industries, Inc. v. Yuma Manufacturing Co., 50 F.R.D. 408 (D.Colo.1970), aff'd. 446 F.2d 1193 (10th Cir.1971), while another has held such judgments to be interlocutory. Paper Coverting Machine Co., Inc. v. FMC Corp., 179 U.S.P.Q. 78 (E.D.Wisc.1973).

The Supreme Court has held that liability judgments in patent cases are interlocutory.

Although the interlocutory decision of the Court of Claims was appealable [cites omitted], as are interlocutory orders of district courts in suits to enjoin infringement [cites omitted], the decision was not final until the conclusion of the accounting [cites omitted]. Hence the court did not lack the power at any time prior to entry of its final judgment at the close of the accounting to reconsider any portion of its decision and reopen any part of the case.

Marconi Wireless Co. v. U.S., 320 U.S. 1, 47, 63 S.Ct. 1393, 1414, 87 L.Ed. 1731 (1942). The fact that a liability judgment may be appealed pursuant to 28 U.S.C. § 1292(c)(2) does not alter its interlocutory character.

[101]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Niece v. Fitzner
941 F. Supp. 1497 (E.D. Michigan, 1996)
Magnesystems, Inc. v. Nikken, Inc.
933 F. Supp. 944 (C.D. California, 1996)
Mendenhall v. Barber-Greene Co.
26 F.3d 1573 (Federal Circuit, 1994)
Morin v. Trupin
809 F. Supp. 1081 (S.D. New York, 1993)
Northwest Airlines, Inc. v. McDonnell Douglas Corp.
791 F. Supp. 1204 (E.D. Michigan, 1992)
In Re Air Crash at Detroit Metro. Airport
791 F. Supp. 1204 (E.D. Michigan, 1992)
Robert v. McDonald v. Union Camp Corporation
898 F.2d 1155 (Sixth Circuit, 1990)
Flynt v. Brownfield, Bowen & Bally
726 F. Supp. 1106 (S.D. Ohio, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
116 F.R.D. 97, 4 U.S.P.Q. 2d (BNA) 1723, 1987 U.S. Dist. LEXIS 4665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-manville-corp-v-guardian-industries-corp-mied-1987.