Nagle Industries, Inc. v. Ford Motor Co.

173 F.R.D. 448, 1997 U.S. Dist. LEXIS 8828, 1997 WL 348475
District Court, E.D. Michigan·Decided June 16, 1997·No. No. 95-75840·Published·Cited by 3 cases

Opinion

MEMORANDUM OPINION AND ORDER DENYING NAGLE’S MOTION TO VOLUNTARILY DISMISS WITHOUT PREJUDICE ITS UNFAIR COMPETITION CLAIMS; GRANTING FORD’S MOTION TO DISMISS OR FOR SUMMARY JUDGMENT ON THE ISSUE OF UNFAIR COMPETITION; DENYING FORD’S MOTIONS TO STRIKE PARAGRAPH 5 OF BARKER’S DECLARATION, PARAGRAPH 7 OF SCHMID’S DECLARATION, AND PARAGRAPH 2 OF COYNE’S DECLARATION; DENYING FORD’S MOTION FOR SUMMARY JUDGMENT ON THE ISSUE OF LOST PROFIT AND PRICE EROSION DAMAGES; AND DENYING FORD’S MOTION FOR RULE 11 SANCTIONS AGAINST NAGLE

EDMUNDS, District Judge.

This matter comes before the Court on a plethora of pending motions: Defendant Ford Motor Co. (“Ford”)‘s motions (1) to dismiss or, in the alternative, for summary judgment on the issue of unfair competition; [450]*450(2) for summary judgment on the issue of lost profit and price erosion damages; (3) to strike paragraph 5 of Vincent L. Barker, Jr.’s declaration; (4) to strike paragraph 2 of Gerald Coyne’s declaration; (5) to strike paragraph 7 of James T. Schmid’s declaration; (6) for sanctions pursuant to Fed.R.Civ.P. 11; and (7) Plaintiff Nagle Industries, Inc. (“Nagle”)’s motion to dismiss without prejudice its unfair competition claims pursuant to Fed.R.Civ.P. 41(a)(2). These motions are addressed in logical as opposed to chronological order.

The Court (1) DENIES Nagle’s motion to have its unfair competition claims voluntarily dismissed without prejudice at this late stage in the litigation when a dispositive motion is pending before the Court; (2) GRANTS Ford’s motion to dismiss or for summary judgment on the issue of unfair competition because Nagle’s common law misappropriation claims are preempted by. federal patent law, Nagle has not met its summary judgment burden on its remaining common law claims and has not persuaded the Court that its unfair competition claims fall within the scope of the Michigan Consumer Protection Act; (3) DENIES as moot Ford’s motions to strike paragraph 5 of Barker’s declaration, paragraph 7 of Schmid’s declaration, and paragraph 2 of Coyne’s declaration; (4) DENIES as moot Ford’s motion for summary judgment on the issue of lost profit and price erosion damages; and (5) DENIES Ford’s motion for Rule 11 sanctions against Nagle because Ford’s motion does not satisfy the “safe harbor” provisions of Rule 11.

I. Background

Nagle filed suit in November 1995 against Ford alleging claims of patent infringement (Count I) and unfair competition (Count II). Ford filed a counterclaim alleging that Na-gle’s United States Patent No. 5,129,281 (“the ’281 patent”) is invalid. Ford subsequently filed three motions for summary judgment addressing, respectively, Nagle’s infringement claims, its unfair competition claims, and its damage claims. Ford’s motion for summary judgment of noninfringement was granted by the Court on March 13, 1997, and Count I of Nagle’s complaint was dismissed. The remaining motions pending before the Court require it to determine whether Nagle’s unfair competition and damage claims should be summarily dismissed with or without prejudice, whether challenged testimony should be stricken, and whether sanctions should be imposed against Nagle.

II. Analysis

A. Nagle’s Rule 41(a) Motion for Voluntary Dismissal Without Prejudice

Nagle seeks to have its unfair competition claims voluntarily dismissed without prejudice. Nagle argues Ford’s federal law counterclaim is not an impediment because the claim can remain for independent adjudication by the Court. Nagle further argues that, in light of its willingness to dismiss with prejudice its Lanham Act claims, this court’s jurisdiction over its state law unfair competition claims is questionable. Ford opposes Nagle’s motion, arguing that Nagle’s request should not be granted at this late stage in the litigation, after extensive discovery has been completed, and when Ford has a motion for summary judgment pending on its claims. Ford further argues that even if Nagle’s claims were concerned only with state law, the Court may properly exercise its discretion and retain jurisdiction in the interests of judicial economy, convenience, and fairness. The Court agrees and DENIES Nagle’s motion.

The decision whether to grant a request for voluntary dismissal under Fed.R.Civ.P. 41(a)(2) rests within the sound discretion of the court. Grover by Grover v. Eli Lilly and Co., 33 F.3d 716, 718 (6th Cir.1994). “The primary purpose of the rule in interposing the requirement of court approval is to protect the nonmovant from unfair treatment.” Id.1 Denial of Nagle’s motion is appropriate because this action: (1) includes a federal counterclaim; (2) requires the court to determine whether Nagle’s state law claims are preempted by federal patent law; (3) has [451]*451been pending in this court for about one and one-half years; (4) has had extensive discovery completed; (5) has required Ford to spend a substantial amount of time, effort, and expense in defending; and (6) had Ford’s motions for summary judgment pending and scheduled for hearing before Nagle’s Rule 41(a)(2) motion was even filed. Id. at 718-19. See also Ali v. St. John Hospital, 836 F.2d 549 (Table, Text in Westlaw), 1987 WL 30582, *1 (6th Cir.1987) (where the court reversed the district court’s grant of a voluntary dismissal without prejudice and held that “[ujnder such circumstances, denial of a motion for voluntary dismissal is the norm”); Pace v. Southern Express Co., 409 F.2d 331, 334 (7th Cir.1969); Scallen v. Minnesota Vikings Football Club, 574 F.Supp. 278 (D.Minn.1983). The Court is not persuaded by Nagle’s arguments that it cannot exercise its discretion and retain jurisdiction over Nagle’s state law unfair competition claims in the interests of judicial economy, fairness and convenience. See Textile Deliveries, Inc. v. Stagno, 52 F.3d 46, 49 (2nd Cir.1995). A contrary result is not dictated by United Mine Workers of America v. Gibbs, 383 U.S. 715, 726, 86 S.Ct. 1130, 1139, 16 L.Ed.2d 218 (1966) (where the Court observed “pendent jurisdiction is a doctrine of discretion, not of plaintiffs right____ Its justification lies in considerations of judicial economy, convenience and fairness to litigants”).

B. Ford’s Motion to Dismiss or for Summary Judgment on the Issue of Unfair Competition

Nagle’s unfair competition claims are based on Michigan common and statutory law.2 Ford’s motion to dismiss or for summary judgment, brought pursuant to Fed.R.Civ.P. 12

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Nagle Industries, Inc. v. Ford Motor Co., 173 F.R.D. 448, 1997 U.S. Dist. LEXIS 8828, 1997 WL 348475 (E.D. Mich. 1997).

173 F.R.D. 448 (Nagle Industries, Inc. v. Ford Motor Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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