Kaliardos v. General Motors Corp.

777 F. Supp. 543, 22 U.S.P.Q. 2d (BNA) 1674, 1991 WL 236155, 1991 U.S. Dist. LEXIS 16780
CourtDistrict Court, E.D. Michigan
DecidedNovember 12, 1991
DocketNo. 88-73729
StatusPublished

This text of 777 F. Supp. 543 (Kaliardos v. General Motors 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
Kaliardos v. General Motors Corp., 777 F. Supp. 543, 22 U.S.P.Q. 2d (BNA) 1674, 1991 WL 236155, 1991 U.S. Dist. LEXIS 16780 (E.D. Mich. 1991).

Opinion

MEMORANDUM OPINION AND ORDER GRANTING DEFENDANTS’ NATIONAL STARCH & CHEMICAL CORPORATION AND BEAZER EAST, INC. MOTION FOR SUMMARY JUDGMENT ON COUNT I, PATENT INFRINGEMENT

GADOLA, District Judge.

Plaintiff Nicolas Kaliardos filed this complaint on September 14, 1988, charging General Motors Corporation and BASF Corporation with infringing U.S. Patent Nos. 3,959,530 and 4,356,036. In February 1990 plaintiff added claims of infringement against National Starch & Chemical Corporation. In September 1990 plaintiff added claims of infringement against Beazer East, Inc.

The patents each relate to specific mixtures of chemical ingredients for wax-type, solvent-based, anti-rust coatings. Plaintiff accuses National Starch and Beazer of infringement by manufacturing and selling wax-type, solvent-based coatings to General Motors. Defendants National Starch and Beazer now bring the instant motion for summary judgment on the patent infringement claims against them. For the reasons set forth below, the defendants’ motion is granted.

FACTS

During the 1970’s vehicle corrosion was a serious problem for automobile manufacturers. The plaintiff, a self-taught chemist, experimented with, tested and invented two wax-type, anti-corrosion coatings. Plaintiff submitted his inventions to the Patent and Trademark Office (PTO). After some language difficulties expressed by the Patent Office Examiner, plaintiff was granted U.S. Patent No. 3,959,530 and No. 4,356,036. Claim 1 to U.S. Patent No. 3,959,530 reads as follows:

A cleaning and protective coating composition consisting essentially of a mixture of
wax residue such as paraffin and mi-crocrystalline wax,
pérchloroethylene,
petroleum distillate having a boiling point ranging between 350 degrees and 380 degrees F, and
a nonionic surfactant such as nonyl-phenoxypoly (ethyleneoxy) and
a small amount of [N.N.N’, N’-tetrakis (2-hydroxypropyl) ethylenediamine].

The italicized terms were changes made by the plaintiff in response to references cited by the PTO. These changes were necessary to secure the patent. Claim 1 to U.S. Patent No. 4,356,036 reads as follows:

An anti-corrosion coating composition comprising
a mixture of aluminum paste or zinc paste containing aluminum or zinc flakes and a solvent,
microcrystalline wax,
aromatic hydrocarbon resin having a softening point, R and B, of 70 C.-lkO C.,
chlorinated rubber having a combined chlorine content of at least 66%,
neutral barium sulfonate,
chlorinated solvent,
aromatic hydrocarbon solvent and
mineral spirits.

Again, the italicized terms were changes made by the plaintiff in response to references cited by the PTO. These changes were necessary to secure the patent. Plaintiff asserts he invented the two wax-type, anti-corrosion coatings to specifically meet the requirements of General Motors Material Specifications 998-1128 and 998-2150. General Motors never accepted any of plaintiff’s coatings for use.

From 1980 to the present, General Motors has used wax-type coatings on the inside surfaces of its automobiles. From the mid-1970s, Koppers, Inc. and Parr, [546]*546Inc., predecessor companies to National Starch and Beazer, supplied General Motors with a wax-type coating, defendants’ product No. 820-1913, that General Motors sprayed into the interior of car doors and other body parts. Two prototype batches of a dripless coating, defendants’ product No. 820-1914, were made in 1987-88. Both of these products correspond to General Motors Material Specification 998-2150. According to defendants and their affiant Mr. Habjanic, no coating was supplied by National Starch, Beazer or any predecessor company that met General Motors Material Specification 998-1128. National Starch is the successor to a part of Beazer’s business that used to supply coating No. 820-1913.

Plaintiff claims that General Motors received proprietary information from plaintiff during the testing process on his patented coating. Plaintiff further claims that General Motors gave this information to National Starch and Beazer, among others, in order to duplicate and utilize the coatings without compensating the plaintiff. National Starch, Beazer and General Motors deny these allegations. Further, defendants’ affiants Mr. Habjanic and Mr. Meilus state that the defendants’ products No. 820-1913 and No. 820-1914 do not contain the identical nor the essential ingredients contained in the plaintiff’s patented coatings. The plaintiff, in a sworn affidavit, disputes this last contention, further adding that “the ingredients or their equivalents which Mr. Habjanic represents are not present in Koppers 820-1913 and 820-1914 coatings are necessary for meeting the General Motors 998-1128 and 998-2150 Material Specifications.” 1

STANDARD OF REVIEW

Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment may be granted “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” “A fact is ‘material’ and precludes grant of summary judgment if proof of that fact would have [the] effect of establishing or refuting one of the essential elements of the cause of action or defense asserted by the parties, and would necessarily affect [the] application of appropriate principle^] of law to the rights and obligations of the parties.” (Citation omitted.) Kendall v. Hoover Co., 751 F.2d 171, 174 (6th Cir.1984) (quoting Black’s Law Dictionary 881 (6th ed.1979)). The Court must view the evidence in a light most favorable to the nonmovant as well as draw all reasonable inferences in the non-movant’s favor. See United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962); Bender v. Southland Corp., 749 F.2d 1205, 1210-11 (6th Cir.1984).

The movant bears the burden of demonstrating the absence of all genuine issues of material fact. See Gregg v. Allen-Bradley Co., 801 F.2d 859, 861 (6th Cir.1986). The initial burden on the mov-ant is not as formidable as some decisions have indicated. The moving party need not produce evidence showing the absence of a genuine issue of material fact; rather, “the burden on the moving party may be discharged by ‘showing’ — that is, pointing out to the district court — that there is an absence of evidence to support the nonmoving party’s case.” Celotex Corp. v. Catrett,

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777 F. Supp. 543, 22 U.S.P.Q. 2d (BNA) 1674, 1991 WL 236155, 1991 U.S. Dist. LEXIS 16780, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaliardos-v-general-motors-corp-mied-1991.