McSherry v. Giannuzzi

717 F. Supp. 238, 12 U.S.P.Q. 2d (BNA) 1801, 1989 U.S. Dist. LEXIS 8138, 1989 WL 79351
CourtDistrict Court, S.D. New York
DecidedJuly 17, 1989
Docket86 Civ. 4746 (JES)
StatusPublished
Cited by3 cases

This text of 717 F. Supp. 238 (McSherry v. Giannuzzi) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McSherry v. Giannuzzi, 717 F. Supp. 238, 12 U.S.P.Q. 2d (BNA) 1801, 1989 U.S. Dist. LEXIS 8138, 1989 WL 79351 (S.D.N.Y. 1989).

Opinion

OPINION AND ORDER

SPRIZZO, District Judge:

In this action, the plaintiff seeks a judgment pursuant to 35 U.S.C. § 256 (1982) declaring him the joint inventor of the invention claimed in United States Patent *239 Nos. 4,197,781 (“the ’781 patent”) and 4,274,324 (“the ’324 patent”), and an order directing the Commissioner of Patents and Trademarks to correct the patents accordingly. These patents were issued to defendant Louis N. Giannuzzi and licensed to the defendant Rawlplug Company (“Rawl-plug”). 1

The defendants move for summary judgment on the grounds of res judicata and judicial estoppel. The plaintiff cross-moves for summary judgment, asserting collateral estoppel in his favor. For the reasons that follow, the defendants’ motion is denied. The Court certifies for interlocutory appeal the order denying the defendants’ motion for summary judgment on the ground of res judicata. The plaintiff’s motion is denied. 2

BACKGROUND

The parties to this action have been adversaries for most of this decade. The history of this case is detailed in McSherry v. Giannuzzi, 227 U.S.P.Q. 868 (Bd. of Pat. App. & Int.1985), aff'd, 790 F.2d 95 (Fed. Cir.1986), and Mechanical Plastics Corp. v. Rawlplug Co., 119 A.D.2d 641, 501 N.Y.S.2d 85 (2d Dep’t 1986). The following brief summary is taken substantially from these two opinions.

On December 9, 1975, McSherry entered into a written consulting agreement with Die Cast & Forge Company (“Die Cast”), a wholly owned affiliate of the defendant Rawlplug. Rawlplug guaranteed the performance of Die Cast. See McSherry, supra, 227 U.S.P.Q. at 870; Affidavit of Thomas W. McSherry (“McSherry Aff.”), Ex. F. Pursuant to the agreement, McSherry was to develop and design new products and improve old ones for Die Cast. Die Cast was granted the exclusive right and license to manufacture, use and sell any invention developed by McSherry under the agreement. If Die Cast failed to exercise this right within four years of the time an invention was disclosed to it, all rights to the invention reverted to McSher-ry. In return, McSherry was entitled to royalties, which were calculated by a percentage of the gross selling price of the products invented by McSherry. See McSherry Aff., Ex. F.

During his employment with Die Cast, McSherry invented a plastic wall anchor, referred to by the parties as the “C6 anchor.” The C6 anchor was disclosed by McSherry to Die Cast, and specifically to the defendant Louis N. Giannuzzi, an employee of Die Cast who had worked with McSherry. See McSherry, supra, 227 U.S. P.Q. at 870. In September 1977, the relationship between McSherry and Die Cast was terminated, and McSherry was allegedly informed by Die Cast that it did not intend to market the C6 or obtain a patent thereon. See Mechanical Plastics, supra, 119 A.D.2d at 641, 501 N.Y.S.2d at 87. Thereafter, Giannuzzi applied for patents in his own name as sole inventor of a wall anchor that has been designated the “Poly-toggle.” Patents claiming this device were issued to Giannuzzi as sole inventor in 1980 and 1981. 3 See supra note 1. These patents have been licensed to Rawlplug.

In 1979, Die Cast and Rawlplug began to manufacture and market the Polytoggle. In 1981, McSherry, believing that the Poly-toggle anchor was substantially the same as his C6 anchor, precipitated an interference proceeding in the Patent and Trademark Office between his C6 anchor patent *240 application 4 and the ’324 patent. See McSherry Aff. at ¶¶ 7-8. In this interference proceeding, McSherry asserted that he, and not Giannuzzi, was the sole first inventor of the anchor, and that the patent should name him as sole inventor. See Mechanical Plastics, supra, 119 A.D.2d at 642, 501 N.Y.S.2d at 87; McSherry Aff. at 117 & Ex. L. The Board of Patent Appeals and Interferences (the “Board”) found in favor of Giannuzzi, and awarded him priority of invention. McSherry, supra, 227 U.S.P.Q. at 874. 5 This decision was affirmed by the Court of Appeals for the Federal Circuit.

McSherry then filed this action pursuant to 35 U.S.C. § 256 (1982) 6 to have his name added to Giannuzzi’s patents as a joint inventor of the Polytoggle. The defendants moved to dismiss the complaint on the ground that it failed to state a cause of action or alternatively for summary judgment on the ground that the action was barred by the doctrine of collateral estop-pel. The motion to dismiss was granted by order dated November 9, 1987, and the plaintiff was directed to file an amended complaint. The amended complaint was filed on November 12, 1987. 7

DISCUSSION

A. Res Judicata

The defendants first assert that the prior decision of the Board of Patent Appeals and Interferences in McSherry v. Giannuzzi, supra, bars the plaintiff from bringing this action. Specifically, the defendants argue that because McSherry did not raise the joint inventorship issue during the interference proceeding, he is precluded by the doctrine of res judicata from raising this issue now. 8

*241 "Under the doctrine of res judicata, or claim preclusion, a ‘final judgment on the merits of an action precludes the parties or their privies from relitigating issues that were or could have been raised in that action.’ Fay v. South Colonie Central School District, 802 F.2d 21, 28 (2d Cir.1986) (quoting Federated Department Stores v. Moitie, 452 U.S. 394, 101 S.Ct. 2424, 69 L.Ed.2d 103 (1981)) (emphasis added); see Young Engineers, Inc. v. ITC, 721 F.2d 1305, 1314 (Fed.Cir.1983). It is therefore essential to a res judicata bar that the litigant against whom it is asserted would have faced no procedural barriers to the assertion of the claim in the earlier action. See Young Engineers, supra, 721 F.2d at 1314-15.

Thus,
[t]he general rule ...

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Related

Mechanical Plastics Corp. v. Tital Technologies, Inc.
823 F. Supp. 1137 (S.D. New York, 1993)
Rawlplug Co., Inc. v. Hilti Aktiengesellschaft
777 F. Supp. 240 (S.D. New York, 1991)

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717 F. Supp. 238, 12 U.S.P.Q. 2d (BNA) 1801, 1989 U.S. Dist. LEXIS 8138, 1989 WL 79351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcsherry-v-giannuzzi-nysd-1989.