Pall Corp. v. Bentley Laboratories, Inc.

523 F. Supp. 450, 212 U.S.P.Q. (BNA) 1, 1981 U.S. Dist. LEXIS 15076
CourtDistrict Court, D. Delaware
DecidedSeptember 30, 1981
DocketCiv. A. 81-289
StatusPublished
Cited by21 cases

This text of 523 F. Supp. 450 (Pall Corp. v. Bentley Laboratories, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pall Corp. v. Bentley Laboratories, Inc., 523 F. Supp. 450, 212 U.S.P.Q. (BNA) 1, 1981 U.S. Dist. LEXIS 15076 (D. Del. 1981).

Opinion

MEMORANDUM OPINION

LATCHUM, Chief Judge.

Pall Corporation (“Pall”), organized under the laws of New York, brought this patent infringement action on July 1, 1981 against Bentley Laboratories, Inc. (“Bentley”), a Delaware corporation, seeking damages, injunctive relief, costs and attorney fees. The complaint, as amended on August 7, 1981, alleges that Bentley has infringed, and is infringing, four of Pall’s patents 1 — three involving certain blood filters and the fourth a gas separator. 2 On August 20, 1981, Bentley answered the amended complaint in which it denied infringement and asserted by way of affirmative defenses and a counterclaim that the patents-in-suit are unenforceable and invalid for a number of different reasons. 3

The following day, Bentley moved, pursuant to 28 U.S.C. § 1404(a), for an order transferring this action to the United States District Court For The Central District of California (the “California Court”). 4

A civil action may be transferred under § 1404(a) to another district “where it might have been brought” if the Court, in its discretion, finds the transfer to be “[f]or the convenience of the parties and witnesses, [and] in the interest of justice.” The Court finds, and indeed it is undisputed, that this action could have been brought in the California Court because Bentley maintains its principal place of business in Irvine, California. 5 Thus, this Court unquestionably has the power to transfer this action and the only issue remaining is whether the Court in its sound discretion should do so after considering the “convenience” and “interest of justice” criteria.

At the outset, the Court is faced with a dispute over the proper standard to be applied. Pall relies on the rule announced in Shutte v. Armco Steel Corp., 431 F.2d 22, 25 (C.A.3, 1970), cert. denied, 401 U.S. 910, 91 S.Ct. 871, 27 L.Ed.2d 808 (1971), where the Court of Appeals for the Third Circuit stated:

It is black letter law that a plaintiff’s choice of a proper forum is a paramount consideration in any determination of a transfer request, and that choice “ * * * should not be lightly disturbed.” ... In accord with that sound doctrine, one district court recently correctly observed: “The decision to transfer is in the Court’s discretion, but a transfer is not to be liberally granted.” ... The burden is on the moving party to establish that a balancing of proper interests weigh in favor of the transfer, . . . and “ * * * unless the balance of convenience of the parties is strongly in favor of the defendant, the plaintiff’s choice of forum should prevail.” ...

*452 In Shutte, the plaintiff administratrix and her decedent were residents of the Western District of Pennsylvania, the decedent had worked in Western Pennsylvania, and all of plaintiff’s damage and expert liability witnesses resided there. The accident, however, occurred in the Western District of Missouri, the place where defendant wished the case transferred. Thus, in Shutte the plaintiff was suing in her own district — her “home turf,” so to speak — and it was in that context that the Third Circuit decided that transfer of the action would be improper. But where the forum selected by a plaintiff is connected neither with the plaintiff nor with the subject matter of the lawsuit, the convenience to plaintiff of litigating in its choice of forum is not as great as it would be were the plaintiff litigating at or near its residence, its principal place of business, or the site of the activities at issue in the lawsuit. Thus, in the latter situation, it is less difficult for the defendant to meet its burden of showing sufficient inconvenience to tip the “balance” in favor of transfer. General Instrument Corp. v. Mostek Corp., 417 F.Supp. 821, 822-23 (D.Del.1976); Burroughs Wellcome Co. v. Giant Food, Inc., 392 F.Supp. 761, 763 (D.Del.1975).

In the present case, Delaware is not Pall’s “home turf”; Pall is neither incorporated in Delaware nor resides there but is incorporated in New York with its principal place of business at Glen Cove, New York. 6 Pall is a holding company which, aside from its research and development activities and small manufacturing facilities located at Glen Cove, New York, conducts the major portion of its business through an international network of subsidiaries. 7 Thus, Pall’s activities relating to the patents-in-suit are primarily conducted at Glen Cove, New York, the site of Pall’s research and development activity 8 and the place where Pali’s blood filters are manufactured 9 by Pall’s subsidiary, Pall Biomedical Products Corp., under a patent license from Pall. 10 Pall has no facilities in Delaware. 11

On the other hand, while Bentley is incorporated under Delaware law, its principal place of business is located at Irvine, California. All of its research and development activities, research and development personnel, corporate offices, officers, corporate records, and United States manufacturing facilities are located at Irvine, California. 12 All sales orders are processed in California and the products shipped from either Bentley’s California or Kentucky warehouses. 13 None of the alleged infringing devices, moreover, have ever been sold in Delaware. 14

Under these facts, where the forum in Delaware, selected by Pall, is neither connected with Pall nor with the patents-in-suit, the subject matter of the litigation, defendant Bentley’s burden of showing sufficient inconvenience to tip the “balance” of convenience “strongly in favor of defendant” becomes less difficult.

Convenience of Parties and Witnesses

In considering the balance of convenience between the parties, it is abundantly clear that the California Court is a much more convenient forum for defendant Bentley and its probable trial witnesses than this Court. As previously noted, Bentley is based in California, all of its officers, key trial witnesses and records are located there and most of the alleged infringing activities occurred there. On the other hand, the California forum would pose some inconvenience to Pall. Most of Pall’s officers, and its primary trial witnesses are located at Glen Cove, New York, some 150 miles and three hours transit time away from *453 Wilmington.

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Bluebook (online)
523 F. Supp. 450, 212 U.S.P.Q. (BNA) 1, 1981 U.S. Dist. LEXIS 15076, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pall-corp-v-bentley-laboratories-inc-ded-1981.