Monsanto Company v. Kem L. Ralph, (Individually and Doing Business as Ralph Brothers Farms)

382 F.3d 1374
CourtCourt of Appeals for the Federal Circuit
DecidedOctober 21, 2004
Docket03-1243, 04-1001
StatusPublished
Cited by33 cases

This text of 382 F.3d 1374 (Monsanto Company v. Kem L. Ralph, (Individually and Doing Business as Ralph Brothers Farms)) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Monsanto Company v. Kem L. Ralph, (Individually and Doing Business as Ralph Brothers Farms), 382 F.3d 1374 (Fed. Cir. 2004).

Opinion

LOURIE, Circuit Judge.

Kem L. Ralph appeals from two final judgments of the United States District Court for the Eastern District of Missouri: (1) a July 12, 2002, judgment on orders of October 10, 2001, striking Ralph’s pleadings under Fed.R.Civ.P. 37(b), and February 15, 2002, imposing monetary sanctions for discovery abuses, intentional violation of court orders, and repeated attempts to conceal his misconduct, Monsanto Co. v. Ralph, No. 4:00CV135 RWS (E.D.Mo. July 12, 2002); and (2) a July 9, 2003, judgment entering a jury award to Monsanto of nearly three million dollars in damages for patent infringement, or, in the alternative, breach of contract, and granting Monsanto’s motion for permanent injunction, Monsanto Co. v. Ralph, No. 4:00CV135 RWS (E.D.Mo. July 9, 2003) (“2003 Judgment ”). Ralph also appeals from the September 3, 2003, order of the trial court denying Ralph’s post-judgment motion to set aside the jury’s award of damages for patent infringement. Monsanto Co. v. Ralph, No. 4:00CV135 RWS (E.D.Mo. Sept. 3, 2003). Because we hold that the contract-based damages are excessive in light of our recent decision in Monsanto Co. v. McFarling, 363 F.3d 1336 (Fed.Cir.2004) (“McFarling ”), but that the trial court did not abuse its discretion in its choice of sanction or its denial of Ralph’s post-judgment motion, and that Ralph has not shown that the larger jury award for patent infringement is unlawful, clearly not supported by the evidence, or based only on speculation or guesswork, we vacate-in-part and affirm-in-part.

*1377 BACKGROUND

As explained in greater detail in McFar-ling, Monsanto developed and patented recombinant gene sequences that can be inserted into plant seeds to protect them against the effects of glyphosate-based herbicides, enabling farmers to spray herbicides such as Monsanto’s Roundup® over their fields to kill weeds and other undesirable plants without killing the desired crops that grow from those seeds. Monsanto also developed and patented recombinant gene sequences encoding proteins that are toxic to certain insects that commonly cause significant damage to host plants. When those sequences are incorporated into seeds, the resulting plants produce, in effect, their own- insecticide. Monsanto provides nonexclusive, restricted-use licenses to various seed companies, which manufacture seed containing the two patented technologies described above and sell those seeds under the Roundup-Ready® and Bollgard® brand names, respectively. Monsanto additionally requires retailers to execute standardized contracts with growers before selling Roundup-Ready® or Bollgard® seed to them.

Mr. Ralph is a farmer who resides in western Tennessee. Together with his brother Roger, he operates Ralph Brothers Farms, a partnership that grows cotton, soybeans, and corn in Tennessee’s Tipton, Shelby, and Haywood Counties. In 1998, Ralph purchased 264 fifty-pound bags of soybean seed containing the patented Roundup-Ready® biotechnology. In 1999, he purchased 127 fifty-pound bags of cottonseed, containing both the Roundup-Ready® biotechnology and the Boll-gard® biotechnology (hereinafter, “stacked-trait” cottonseed). According to the contract that was in use at the time that Ralph purchased the Roundup-Ready® soybean seed and stacked-trait cottonseed (ie., the “Technology Agreement”), .the farmer, or “grower,” was required, in exchange for the opportunity to purchase and plant seed containing the Roundup-Ready® and/or Bollgard® technology, to agree, inter alia:

To use the seed containing Monsanto gene technologies for planting a commercial crop only in a single season. To . not supply any of this seed to any other person or entity for planting, and to not save any crop produced from this seed for replanting, or supply saved seed to anyone for replanting.
To not use this seed or provide it to anyone for crop breeding, research, generation of herbicide registration data or seed production.

The Technology Agreement also contained a forum-selection clause, conferring personal jurisdiction over the grower in the Eastern District of Missouri, and a clause specifying damages in the event of breach by the Grower. The latter clause reads as follows:

In the event that the Grower saves, supplies, sells or acquires seed for replant in violation of this Agreement and license restriction, in addition to other remedies available to the technology provider(s), the Grower agrees that damages will include a claim for liquidated damages, which will be based on 120 times the . applicable Technology Fee.

At the time Ralph purchased the aforementioned seeds, the Technology Fee, which was built into the price of each seed bag, was $5.00/bag for Roundup-Ready® soybean seed and $l'12.80/bag for stacked-trait cottonseed.

The district court found that Ralph saved 796 bags of Roundup-Ready® soybean seeds and 108 bags of stacked-trait cottonseed at the end of the 1998 harvest for planting in the 1999 growing season, in *1378 contravention of the Technology Agreement. According to the court, Ralph again illicitly saved seed in 1999 for planting in 2000: 438 bags of Roundup-Ready® soybean seeds and 817 bags of stacked-trait cottonseed.

After an investigation indicated that Ralph might have saved and re-planted patented seeds, Monsanto filed suit against Ralph in the district court on January 28, 2000, asserting claims for, inter alia, willful infringement of Monsanto’s U.S. Patents 5,164,316, 5,196,525, 5,322,938, 5,352,-605, and 5,633,435, and breach of contract. On February 10, 2001, Ralph filed a Motion to Dismiss for Lack of Personal Jurisdiction and Improper Venue, in which he asserted that he had no contacts with Missouri and should not be required to defend a case there. Monsanto Co. v. Ralph, No. 4:00CV135 RWS, slip op. at 3 (E.D.Mo. Feb. 15, 2002) (“2002 Order”). The court found that assertion to be untrue, as it was discovered thereafter that Ralph had been doing business with Sinkers Corporation in Kennett, Missouri, for over twenty years in matters directly related to the underlying claims in this case. Monsanto Co. v. Ralph, No. 4:00CV135 RWS, slip op. at 22-23 (E.D.Mo. Oct. 10, 2001) (“Sanction Hearing Transcript ”).

That same month, when Monsanto arrived to sample Ralph’s crops, to which Ralph had previously consented, Ralph revoked his consent, forcing Monsanto to obtain an order from the district court permitting it to enter. 2002 Order, slip op. at 4. The court granted the order on February 24, and, based on Ralph’s misrepresentation that he would need to plant his seed by March l, 1 the court’s order gave Monsanto until that date to investigate. Ralph initially represented under oath that he had not stored any seed, but the district court found that, after being confronted with evidence from Sinkers that he had stored cottonseed there, he admitted that the seed had existed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Warren v. Forney
D. Minnesota, 2024
Verinata Health, Inc. v. Ariosa Diagnostics, Inc.
329 F. Supp. 3d 1070 (N.D. California, 2018)
Brigham & Women's Hospital, Inc. v. Perrigo Co.
280 F. Supp. 3d 192 (D. Massachusetts, 2017)
Veracode, Inc. v. Appthority, Inc.
137 F. Supp. 3d 17 (D. Massachusetts, 2015)
Westerngeco L.L.C. v. Ion Geophysical Corp.
791 F.3d 1340 (Federal Circuit, 2015)
Aqua Shield v. Interpool Pool Cover Team
774 F.3d 766 (Federal Circuit, 2014)
Bortex Industry Co. v. Fiber Optic Designs, Inc.
296 F.R.D. 373 (E.D. Pennsylvania, 2013)
Apple Inc. v. Samsung Electronics Co.
888 F. Supp. 2d 976 (N.D. California, 2012)
Lonnie Jackson v. Patrick Murphy
468 F. App'x 616 (Seventh Circuit, 2012)
Lucent Technologies, Inc. v. Microsoft Corp.
837 F. Supp. 2d 1107 (S.D. California, 2011)
Victor Stanley, Inc. v. Creative Pipe, Inc.
269 F.R.D. 497 (D. Maryland, 2010)
Skydive Arizona, Inc. v. Quattrochi
704 F. Supp. 2d 841 (D. Arizona, 2010)
Uniloc USA, Inc. v. Microsoft Corp.
640 F. Supp. 2d 150 (D. Rhode Island, 2009)
Spectralytics, Inc. v. CORDIS CORPORATION
650 F. Supp. 2d 900 (D. Minnesota, 2009)
Boeing Co. v. United States
86 Fed. Cl. 303 (Federal Claims, 2009)
Cornell University v. Hewlett-Packard Co.
609 F. Supp. 2d 279 (N.D. New York, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
382 F.3d 1374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monsanto-company-v-kem-l-ralph-individually-and-doing-business-as-ralph-cafc-2004.