Mercantile National Bank of Chicago v. Quest, Inc.

431 F.2d 261, 166 U.S.P.Q. (BNA) 513
Court of Appeals for the Seventh Circuit·Decided August 13, 1970·No. No. 17694·Published·Cited by 3 cases

Opinion

KERNER, Circuit Judge.

Plaintiff-appellees filed suit alleging acts of infringement by defendants-appellants of their patented wound evacuator, an apparatus providing closed wound suction, and acts of unfair competition. The district court entered a judgment order finding the patent valid and infringed. Defendants appeal.

The “evacuator” is a surgical device sold under the trade name of “Hemo-vac,” for the removal of fluids from the human body. The device consists of two circular plastic outer walls held together by a flexible plastic side wall. Within the container are four spirally retained compression springs, which after the container is depressed and the stopper replaced, develops a vacuum against which the springs exert a steady pressure drawing off body fluids through a flexible plastic tube, one end of which is attached to the top of the container and the other is inserted in the vicinity of the wound. The device is light weight and is capable of being strapped to the patient for mobility. The container, when filled with fluid, is easily removed and replaced with a new sterile container, or drained of the fluids with little inconvenience to the patient. Further, the device does not require any vacuum developing machinery for activating the suction process. The inventors claim ease in shipment and economical cost as compared to other similarly operated devices.

The patent was developed by Dr. R. T. McElvenny, an orthopedic surgeon before his death, in conjunction with his assistant, Gregory Sullivan, and Harold I. Snyder. In January, 1960, a prototype was demonstrated before the Academy Meeting for Orthopedic Surgeons. The first devices for sale were manufactured by Snyder Manufacturing Co. (Snyder) and delivered to Zimmer Manufacturing Co. (Zimmer), distributor, about July, 1960.

Application for letters patent were filed on July 14, 1960, and Serial No. 42,889 was issued; Letters Patent No. 3,115,138 were granted December 24, 1963, for “Evacuator” to Robert T. McElvenny, Harold I. Snyder and Gregory B. Sullivan.1

Paul E. Magers was employed by Zim-mer in January, 1959, and attended the Academy Meeting for Orthopedic Surgeons in January, 1960, as Zimmer’s general manager. His attendance was motivated by the necessity of evaluating new products. At this meeting, Magers through Allan Ramsey, the Zimmer products distributor in Chicago, became aware of the McElvenny evacuator device. Simultaneously at this meeting Magers met representatives of DePuy Manufacturing Co., a competitor of Zim-mer which resulted in employment of Magers by DePuy in June of 1960.

[263]*263In August or September of 1960, Ma-gers and J. Keaton Landis of DePuy visited with Dr. MeElvenny and Gregory Sullivan in Chicago and discussed the development of the evacuator. Being informed that Dr. MeElvenny had entered into an agreement for manufacture and distribution with Snyder, Magers and Harry H. Hoppes then contacted Harold I. Snyder and learned that an agreement had been entered into with Zimmer for an exclusive license for distribution of Dr. MeElvenny’s device, trademarked “Hemovae.”

In February, 1962, Magers left the employ of DePuy and in August, 1962, he, with his wife and Earl J. Simmons, his father-in-law, incorporated defendant Quest, Inc. (Quest). Defendant Quest manufactured and sold its surgical evacuator, the alleged patent infringer, under the name of “Bel-O-Pak.”

Plaintiffs filed their complaint March 26, 1965, alleging in Count I, patent infringement, and in Count II, unfair competition, appropriation of trade secrets and confidential information, palming off and unjust enrichment. Defendants responded, denying all charges, alleging invalidity of the patent and denying enforceability by reason of misuse, and counterclaimed, filing a second counterclaim charging plaintiffs with violation of the Antitrust Laws of the United States and the State of Indiana. Extensive pre-trial interrogatories, depositions, affidavits and briefs were filed. Prior to trial, the district court granted defendant’s motion for summary judgment on Count II of the complaint. Plaintiffs filed notice of waiver of appeal of this order.

Upon conclusion of the trial, the district court found plaintiffs’ patent valid and infringed as to all claims 3-14; that the patent was enforceable against defendants; and that there had been no violation of the United States or Indiana State Antitrust Laws, and no patent misuse. The court further ordered a Writ of Perpetual Injunction to issue against the defendants twenty days after the issuance of the Judgment Order and for an accounting to determine the extent of plaintiffs’ damages caused by the manufacture and sale of the infringing devices.

Defendants on appeal allege numerous errors in the court’s Findings of Fact and Conclusions of Law. The errors alleged fall into several categories: prior art, obviousness, failure of good faith disclosure, misuse of patent and antitrust violations.

The rapid healing of surgical wounds has long been a goal sought by surgeons. Restoration in the past has been improved through gravity draining of the fluids that collect in the vicinity of the wound after hermetic suturing. Prior to this early method, the body was required to resorb the effusions, which was a slow and unsatisfactory method, often causing the formation of fibrous tissue. As early as 1941, Iselin and Charton of France, discussed continuous suction and an article written on the topic by Anselme Schwartz in 1945. Numerous articles followed in the latter 1940’s describing the advantages of negative pressure in holding skin flaps together and the insertion of multi-perfor-ated catheters in the vicinity of the wound. This methodology eliminated bulky, and frequent changes of pressure dressings. Among the many contributors to the literature are the names of Murphy, Raffl, Redon, Lattimore, Cossie and Deban.

The paper delivered by Henri Redon in 1954 at the Académie de Chirugie in Paris, appears from the many references made to it the most influential in the infancy of closed-wound suction technique. Redon described accelerating coaptation through a preliminary effective cleaning stage of the wound, suturing, insertion of a tube in the wound area and establishment of a negative pressure through the use of a vacuumed transfusion bottle “transformed into a pneumatic machine.” A recommended vacuum of 75 cm. of mercury was to be maintained, and a manometric pressure control was used to measure the vacuum. The beneficial results listed by Redon are short[264]*264ened hospitalization, simplification of nursing, comfort to the patient and reduction of oedema and post-operative adhesions.

This surgical technique is now commonly used by surgeons; however, the method of providing the suction or negative pressure has varied. Compressed bulb syringes may in some cases be satisfactory but are not generally used. The vacuumed bottle, suggested by Re-don has served well, but has the disadvantages of weight, loss of vacuum requiring regeneration through expensive mechanical equipment, and the use of a manometric gauge to determine vacuum. Central suction systems are used but are expensive to install and maintain. Individual power driven vacuum pumps may be used but they too are expensive, noisy and in the event oxygen for patient care is required, present a danger from electrically powered motors.

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Mercantile National Bank of Chicago v. Quest, Inc., 431 F.2d 261, 166 U.S.P.Q. (BNA) 513 (7th Cir. 1970).

431 F.2d 261 (Mercantile National Bank of Chicago v. Quest, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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