Laboratory Corporation of America Holdings, Laboratory Corporation of America, and National Genetics Institute v. Chiron Corporation

384 F.3d 1326, 72 U.S.P.Q. 2d (BNA) 1745, 2004 U.S. App. LEXIS 20544, 2004 WL 2186670
Court of Appeals for the Federal Circuit·Decided September 30, 2004·No. 03-1572·Published·Cited by 44 cases

Opinion

LINN, Circuit Judge.

Chiron Corporation (“Chiron”) appeals from a decision of the United States District Court for the District of Delaware (“district court”) granting a motion brought by Laboratory Corporation of America Holdings, Laboratory Corporation of America, and National Genetics Institute (collectively, “LabCorp”) to enjoin Chiron from prosecuting a parallel litigation co-pending in the United States District Court for the Northern District of California. Lab. Corp. of Am. Holdings v. Chiron Corp., No. 03-364-SLR (D.Del. Aug. 4, 2003) (“Order”). Because the district court did not abuse its discretion in granting the motion to enjoin Chiron from maintaining the co-pending litigation in the Northern District of California, we affirm.

I. BACKGROUND

Chiron developed nucleic acid testing methods for detecting Hepatitis C virus in human blood and blood products. See, e.g., U.S. Patent No. 5,712,088. Chiron owns several U.S. patents related to various aspects of its Hepatitis C virus-related inventions, including U.S. Patent Nos. 5,712,088; 5,714,596; 5,863,719; and 6,074,816 at issue in litigations filed in both the District of Delaware and the Northern District of California. LabCorp supplies nucleic acid testing products for detecting the presence and quantity of Hepatitis C virus and performs Hepatitis C virus nucleic acid tests at its facility in North Carolina.

On November 21, 2002, Chiron informed LabCorp that it would file a patent infringement complaint against LabCorp the same day unless LabCorp signed a standstill agreement and undertook licensing negotiations. LabCorp executed a First Standstill Agreement that day. The parties subsequently executed a Second Standstill Agreement, which expired in early April 2003.

Negotiations and discussions continued between the parties about extending the Second Standstill Agreement, but were unsuccessful. After LabCorp failed to sign a proposed extension, Chiron filed suit against LabCorp in the United States District Court for the Northern District of California (“California action”). The California action was docketed as having been filed on April 9, 2003 at 5:50 P.M. PST, or 8:50 P.M. EST. On that same day, unbeknownst to Chiron, LabCorp had earlier filed a declaratory judgment lawsuit against Chiron in the United States District Court for the District of Delaware (“Delaware action”). The Delaware action was docketed as having been filed on April 9, 2003 at 4:27 P.M. EST, approximately four hours before the California action was filed in the Northern District of California. The same patents are in dispute in both cases.

LabCorp brought a motion in the Delaware district court to enjoin the California action. Chiron responded with a cross-motion to dismiss, stay, or transfer the Delaware action. The Delaware district court granted LabCorp’s motion and denied Chiron’s cross-motion. Chiron appealed the grant of the motion to enjoin the California action, but did not appeal the denial of its cross-motion to dismiss, stay, or transfer the Delaware action.

II. ANALYSIS

A. Threshold Issues

The unique nature of this court’s jurisdiction in patent cases often requires the *1328 court to consider whether to apply regional circuit law or Federal Circuit law to particular issues presented. In many cases, the choice is not critical, given the uniformity of federal jurisprudence governing much of the law. But for some issues, there are meaningful differences that require us to decide which law governs.

Here, we are called upon to decide between Federal Circuit and Third Circuit law on threshold issues affecting our jurisdiction over this appeal. As noted above, this is an appeal by Chiron from the grant by the Delaware district court of Lab-Corp’s motion to enjoin Chiron’s prosecution of the parallel action filed by Chiron in California four hours after the Delaware action. For clarity, when we speak of “parallel actions,” we are referring to co-pending patent infringement and declaratory judgment actions involving the same patents and the same parties. Chiron contends that Federal Circuit law governs and that under the law of this circuit, the grant of an injunction against a parallel action is immediately appealable under 28 U.S.C. § 1292(a)(1). LabCorp counters that regional circuit law governs and that under the law of the Third Circuit, the grant of the motion to enjoin the parallel action is interlocutory, is reviewable only by petition for writ of mandamus, and is not ripe for appellate review.

1. Applicable Law

Section 1292(a)(1) provides:

[T]he courts of appeals shall have jurisdiction of appeals from ... Interlocutory orders of the district courts of the United States ... granting, continuing, modifying, refusing or dissolving injunctions, or refusing to dissolve or modify injunctions ....

28 U.S.C. § 1292(a)(1) (2000).

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Laboratory Corporation of America Holdings, Laboratory Corporation of America, and National Genetics Institute v. Chiron Corporation, 384 F.3d 1326, 72 U.S.P.Q. 2d (BNA) 1745, 2004 U.S. App. LEXIS 20544, 2004 WL 2186670 (Fed. Cir. 2004).

384 F.3d 1326 (Laboratory Corporation of America Holdings, Laboratory Corporation of America, and National Genetics Institute v. Chiron Corporation) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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