Manildra Milling Corporation, Plaintiff/cross-Appellant v. Ogilvie Mills, Inc. v. Henkel Corporation and Henkel of America, Inc., Third-Party and John Thomas Honan, Counterclaim

1 F.3d 1253
CourtCourt of Appeals for the Third Circuit
DecidedSeptember 20, 1993
Docket92-1462
StatusUnpublished

This text of 1 F.3d 1253 (Manildra Milling Corporation, Plaintiff/cross-Appellant v. Ogilvie Mills, Inc. v. Henkel Corporation and Henkel of America, Inc., Third-Party and John Thomas Honan, Counterclaim) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Manildra Milling Corporation, Plaintiff/cross-Appellant v. Ogilvie Mills, Inc. v. Henkel Corporation and Henkel of America, Inc., Third-Party and John Thomas Honan, Counterclaim, 1 F.3d 1253 (3d Cir. 1993).

Opinion

1 F.3d 1253

30 U.S.P.Q.2d 1012

NOTICE: Federal Circuit Local Rule 47.6(b) states that opinions and orders which are designated as not citable as precedent shall not be employed or cited as precedent. This does not preclude assertion of issues of claim preclusion, issue preclusion, judicial estoppel, law of the case or the like based on a decision of the Court rendered in a nonprecedential opinion or order.
MANILDRA MILLING CORPORATION, Plaintiff/Cross-Appellant,
v.
OGILVIE MILLS, INC., Defendant-Appellant,
v.
Henkel Corporation and Henkel of America, Inc., Third-Party Defendants,
and
John Thomas Honan, Counterclaim Defendant.

Nos. 92-1462, 92-1480.

United States Court of Appeals, Federal Circuit.

June 22, 1993.
Order Revising Opinion on Denial of
Rehearing Sept. 20, 1993.

Before RICH, MICHEL and CLEVENGER, Circuit Judges.

CLEVENGER, Circuit Judge.

Ogilvie Mills, Inc. (Ogilvie) appeals from the June 15, 1992 judgment of the United States District Court for the District of Kansas,1 entered on the basis of a jury verdict, holding, inter alia, claims 1-3, 8-10, 16-19 and 24-27 of U.S. Patent No. 3,901,725 and claims 1, 6-10 and 12-14 of U.S. Patent No. 4,280,718 invalid and not infringed by Manildra Milling Corporation (Manildra), and Ogilvie liable under section 43(a) of the Lanham Act and the Kansas state law causes of action for tortious interference with prospective economic advantage and injurious falsehood. We affirm-in-part, reverse-in-part, vacate-in-part and remand.

* U.S. Patent No. 4,280,718 ('718 patent), entitled "Pressure Sensitive Recording Sheet Containing Size Classified Cereal Starch Granules," issued on July 28, 1981 to Johnson et al., who assigned their rights to Henkel Corporation (Henkel). It is directed to the use of fractionated large granule wheat starch (LGWS) as a stilting material in carbonless copy paper (CCP)2 to prevent premature rupture of fragile dye microcapsules through casual contact with the layered paper.

U.S. Patent No. 3,901,725 ('725 patent), entitled "Size Classified Cereal Starch Granules," issued on August 26, 1975 to Bond et al., who assigned their rights to A.E. Staley Manufacturing Company (Staley). Henkel purchased Staley's rights in the '725 patent in November 1978. It is directed both to the process for producing LGWS from a clean starch feed through hydroclassification,3 and to the LGWS itself.

Both patents at issue in this case originate from, and trace their prosecution histories to, the same parent patent application, No. 180,588, filed by Staley in September 1971, and are each the result of a restriction requirement made in the original application by the Patent Office. Ogilvie, a subsidiary of Ogilvie Mills, Ltd. and a legal entity unaffiliated with Henkel, was incorporated in January 1985 and immediately acquired all rights in both the '718 and '725 patents through an arms-length transaction with Henkel.

In October 1986, Manildra filed a declaratory judgment action seeking a declaration that Ogilvie's patents were invalid and not infringed. Manildra also asserted a claim for damages against both Ogilvie and Henkel,4 respectively the present and prior owners of the patents, for violation of the federal antitrust laws, unfair competition under section 43(a) of the Lanham Act, and both tortious interference with prospective economic advantage and injurious falsehood under Kansas law. Ogilvie counterclaimed for willful infringement against both Manildra and its owner, Honan.

After a lengthy trial,5 the jury found by special verdict, inter alia, that (i) the patent claims in suit were invalid; (ii) the patent claims were not infringed, either literally or under the doctrine of equivalents; (iii) Ogilvie had not violated the federal antitrust laws; and (iv) Ogilvie had not misused its '718 patent; but (v) Ogilvie was liable to Manildra (1) under section 43(a) of the Lanham Act; and (2) for both tortious interference with prospective economic advantage and injurious falsehood. In accordance with its verdict, the jury awarded Manildra $2,250,000 in actual damages and $2,500,000 in punitive damages.

The court subsequently denied Ogilvie's post-trial motions for judgment as a matter of law (JMOL) on all adversely-decided issues, for a new trial on those same issues, and for remittitur of the damages. The court also denied Ogilvie's request for a ruling on its motion to correct inventorship under 35 U.S.C. Sec. 256 (1988) and Manildra's motions, inter alia, for a new trial on the antitrust claim and enhanced damages. The court, however, granted Manildra's motion for reasonable attorney fees, having found that the case was "exceptional" under either 35 U.S.C. Sec. 285 (1988) or 15 U.S.C. Sec. 1117(a) (1988). Ogilvie appeals from the district court's denials of its post-trial motions and Manildra cross-appeals from the denial of its motion for a new trial on its antitrust claim.6

II

In order to overturn a judgment entered on the basis of a jury verdict, the party against whom the judgment was rendered must demonstrate either that "the jury's findings [on disputed material factual issues], presumed or express, are not supported by substantial evidence, ... [or] if they [are so supported], that the legal conclusion(s) implied from the jury's verdict cannot in law be supported by those findings." Read Corp. v. Portec, Inc., 970 F.2d 816, 821, 23 USPQ2d 1426, 1431 (Fed.Cir.1992); Verdegaal Bros., Inc. v. Union Oil Co., 814 F.2d 628, 631, 2 USPQ2d 1051, 1052 (Fed.Cir.), cert. denied, 484 U.S. 827 (1987). Rather than directly reviewing the jury's verdict, we instead review the trial court's denial of a renewed motion for JMOL under Rule 50(b) of the Federal Rules of Civil Procedure, and must decide

for ourselves whether reasonable jurors viewing the evidence as a whole could have found the facts needed to support the verdict in light of the applicable law. If we conclude that no reasonable findings of fact, supported by substantial evidence, could support the verdict that was incorporated into the trial court's judgment, then we must conclude that the trial court erred in not granting the motion for [JMOL].

Lemelson v. General Mills Inc., 968 F.2d 1202, 1207, 23 USPQ2d 1284, 1288 (Fed.Cir.1992), cert. denied, 113 S.Ct. 976 (1993). Substantial evidence is such relevant evidence, considering the record as a whole, on which a reasonable jury might base the verdict under review. Perkin-Elmer Corp. v. Computervision Corp., 732 F.2d 888, 893, 221 USPQ 669, 673 (Fed.Cir.), cert. denied, 469 U.S. 857 (1984). Substantial evidence, however, constitutes more than a "mere scintilla." Biodex Corp. v.

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