Magnetic Engineering & Manufacturing Co. v. Dings Mfg. Co.

178 F.2d 866, 84 U.S.P.Q. (BNA) 105, 1950 U.S. App. LEXIS 4151
Court of Appeals for the Second Circuit·Decided January 4, 1950·No. 21454_1·Published·Cited by 129 cases

Opinions

L. HAND, Chief Judge.

The plaintiff has appealed from an order entered in the above action which (1) denied a motion for a preliminary injunction, forbidding the defendant to threaten its customers with infringement of four named patents; (2) directing the plaintiff to amend its complaint by stating separately two claims which it had pleaded as one, and to state more definitely certain allegations in each claim; and (3) transferring the action to the Eastern District of Wisconsin as the more convenient forum.1 The nature of the action and the facts, alleged in the pleadings and in the affidavits, are stated in Judge Hulbert’s opinion reported in D.C., 86 F.Supp. 13, with which we shall assume familiarity in what we have to say; but at the outset a question arises whether we have any longer any appellate jurisdiction whatever over the order. Judge Hulbert certainly intended to decide the motion for a preliminary injunction and to compel the filing of a new complaint, while the action remained before him, and to transfer it only after he had done so. Indeed, it would have been absurd to decide anything in an action which had already been transferred [868]*868elsewhere; and the clerk of the District Court for the Southern District of New York, following the judge’s direction, did not at once transmit the papers on file in his office to the Eastern' District of Wisconsin; or indeed, until after the plaintiff had appealed. The order did not affect automatically to transfer the cause; the transmittal of the papers was to be the symbolic act of transfer; and the case was still in the district court, when the appeal was taken. Since the appeal removed it, nothing taking place later in the district court could affect the jurisdiction once acquired. However, the order, requiring the plaintiff to separate the claims and to make the complaint more definite, was in - any event plainly interlocutory, and not appeal-able on any theory. We shall therefore confine our discussion to the other two provisions of the order.

In so far as it denied the temporary injunction, it was of course appealable, and it is before us on the merits. In support of its motion as to two of the four patents in controversy — Nos. 2,003,430 and 2,090,112 — the plaintiff submitted an affidavit of one, Hope, that he had been chief engineer of the defendant in 1932, “during the prosecution of the application” of the first of these patents; and that the defendant’s attorney, who was “soliciting” it, told him that he thought it might be possible “to get some sort of patent, but that it would not be any good.” The affidavit went on to say that the attorney had also said that he had told the defendant’s president “to drop the application,” and that the president had answered that ordinarily he would so do, but that if any sort of patent at all could be obtained he thought it would be valu-i able to them from a “business trading.viewpoint.” As to the second patent, the plaintiff produced a letter of the defendant’s president to the same attorney — while the application for that patent was in the Patent Office — part of which declared: “Frankly, we are going through with this for political purposes. The refinements brought out have some merit, of course, but to my way of thinking they hardly warrant the expense of taking out a patent on them.” ■. .

The plaintiff served this affidavit on the defendant on April 13, 1949, and the motion did not come on for hearing until May 24. On April 18 the defendant made a motion in four parts, which it supplemented on May 13, and again on May 24, on which day it also filed its answer. Nowhere- in any of the affidavits filed did its president, or anyone else, deny or qualify the statements we have quoted; and for the purpose of a temporary injunction we must take them as true. So taken, they justify a provisional conclusion that the defendant did not act in good faith, when it several times asserted to customers of the plaintiff that the two patents are valid, and intimated that it would sue for their infringement. It must be enjoined from continuing to do so, until their validity can be determined at the trial. Nothing of the kind affects the other two patents in suit — Nos. 2,410,601 and 2,446,812. So far as appears, these enjoy the presumptive validity of any duly issued patents, and the defendant is within its rights in asserting them against anyone whom it in good faith believes to be infringing them. The plaintiff must submit to any loss it may sustain, as must anyone who is sued in good faith upon a patent not yet adjudicated; the only relief is an action for a declaratory judgment, such as this. The order denying the motion to enjoin the defendant from threatening the plaintiff’s customers with suits upon Patents Nos. 2,003,430 and 2,090,112 will be reversed and an injunction will go as prayed; otherwise it will be affirmed.

There remains the question of the transfer. Before the enactment of § 1404(a) of the Judicial Code all that courts could do in cases of forum non conveniens was to dismiss the complaint, and leave the plaintiff to a new action in the proper district; those were final orders and appealable. ’ However, when an action transferred, it remains what it was; all further proceedings in it are merely referred to another tribunal, leaving untouched whatever has been already done. For this reason the Fourth Circuit in Jiffy Lubricator Company, Inc. v. Stewart-[869]*869Warner Corporation,2 dismissed an appeal from such an order. We agree; and the appeal from that part of the order will be '•.dismissed.

In this circuit we have twice refused to accept an appeal as a substitute for a petition for mandamus, even when that remedy was applicable ;3 and we shall abide by that ruling. That would require the plaintiff to proceed by mandamus, as was done later in Mottolese v. Preston, 2 Cir., 176 F.2d 301. However, that course would not be effective here, for, if we dismiss the appeal and remand the. case to the district court, it will be too late to grant a mandamus, for the cause has been already transferred. Nevertheless, if we should have had jurisdiction to issue the writ, had the plaintiff applied for it at the time when it appealed, we think that we ought to grant it now, ignoring what is at best only a matter of form; and for that reason we hold that we are free to treat the appeal as a petition for mandamus. The question then becomes whether the circumstances at bar call for its issue. If we could protect our appellate jurisdiction only in that way, there would be no doubt; indeed the practice before 1875 would then control, under which, if a circuit court erroneously remanded a removed case to a state court, the Supreme Court would review the remand by mandamus.4 In 1875 the right of appeal or writ of error was expressly given in such cases 5 so that mandamus became unnecessary; and, when the Act of 1875 was ¿mended in 1887, it abolished appeal and writ of error,6 and the Court held that the old practice did not revive, because the intent was apparent to abolish any kind of review — especially because of the words, “such remand shall be immediately carried into execution.” 7 The precedent nevertheless is still good; and, if there were no difference between a remand from a federal to a state court and a transfer to another federal court, the writ ought to go in the case at bar.

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Magnetic Engineering & Manufacturing Co. v. Dings Mfg. Co., 178 F.2d 866, 84 U.S.P.Q. (BNA) 105, 1950 U.S. App. LEXIS 4151 (2d Cir. 1950).

178 F.2d 866 (Magnetic Engineering & Manufacturing Co. v. Dings Mfg. Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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