Prepo Corporation v. Pressure Can Corporation and William B. Hinn, Knapp-Monarch Company, Defendant-Intervenor-Appellant (Two Cases)

234 F.2d 700
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 6, 1956
Docket17-2679
StatusPublished
Cited by10 cases

This text of 234 F.2d 700 (Prepo Corporation v. Pressure Can Corporation and William B. Hinn, Knapp-Monarch Company, Defendant-Intervenor-Appellant (Two Cases)) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prepo Corporation v. Pressure Can Corporation and William B. Hinn, Knapp-Monarch Company, Defendant-Intervenor-Appellant (Two Cases), 234 F.2d 700 (7th Cir. 1956).

Opinion

LINDLEY, Circuit Judge.

Plaintiff, owner of patent to Falligant, 2,683,484, issued July 13, 1954, originally brought suit in the district court against the defendant Pressure Can Corporation for infringement and unfair competition. Later it joined as defendant the corporation’s president, William B. Hinn. Knapp-Monarch Company, having purchased certain assets of Pressure in June 1955, on July 8, 1955, was permitted to intervene and become a party defendant as to the questions raised as to validity and infringement. The cause finally came to issue upon the second amended complaint and the answers thereto. No questions other than those arising upon the first count charging infringement are involved on this appeal.

On October 25, 1955, Knapp-Monarch filed a motion for summary judgment, arguing that the patent was invalid in view of the provisions of R.S. 4886, U.S.C. Title 35, § 102(b), as interpreted by the United States Supreme Court in Muncie Gear Works, Inc., v. Outboard Marine & Mfg. Co., 315 U.S. 759, 62 S.Ct. 865, 86 L.Ed. 1171. The court denied the motion, in which apparently Pressure concurred, and entered final judgment in favor of plaintiff against defendants, adjudging the patent valid and infringed, *702 and ordering an accounting, treble damages and attorney’s fees. From that judgment separate appeals have been perfected. The ultimate question submitted is whether the district court was justified in entering summary judgment in plaintiff’s favor.

Under Rule 56 of the Federal Rules of Civil Procedure, 28 U.S.C.A., a summary judgment may be entered if it appears that no genuine issue of material fact exists and the question raised is one of law upon undisputed facts. Defendant’s motion averred that there was no genuine issue as to any material fact with respect to invalidity of the patent on the ground urged and that defendant was entitled to judgment of invalidity and non-infringement as a matter of law. This admission the district court evidently thought was a waiver of all defenses of invalidity as well as of any question of infringement, giving the court authority under the rule to treat the case as though all questions of fact theretofore presented had been removed from the case, and proceeded to enter final judgment, as at trial, in favor of plaintiff and against defendant declaring the patent valid and infringed.

We think the court labored under a misapprehension of the scope and proper interpretation of Rule 56. In M. Snower & Co. v. United States, 7 Cir., 140 F.2d 367, at page 369, we had occasion to consider a similar situation. There we said that plaintiff “argues that there is no issue of fact because the defendant by making a motion for judgment on the pleadings has admitted the untruth of its denial of plaintiff’s allegation * * * when a party moves for judgment on the pleadings, he not only, for the purposes of his motion, admits the truth of all the allegations of his adversary, but must also be deemed to have admitted the untruth of all of his own allegations which have been denied by his adversary. But [the cases] make it clear that such ‘admission’ is only for the purpose of the motion. In other words, such ‘admission’ is not final, binding, and conclusive in such a way as to amount to a definitive waiver of material facts put in issue by the answer. Instead, the trial may proceed, and the factual issues raised by the answer are then subject to proof. Thus if the court denies a party’s motion for judgment on the pleadings, this does not mean that he is precluded from contending that his denials (in his answer) of the allegations in plaintiff’s complaint are true.” Later, the United States Court of Appeals for the Sixth Circuit, in Beg-naud v. White, 170 F.2d 323, agreed, saying at page 327: “The fact that both parties make motions for summary judgment, and each contends in support of his respective motion that no genuine issue of fact exists, does not require the Court to rule that no fact issue exists. Each, in support of his own motion, may be willing to concede certain contentions of his opponent, which concession, however, is only for the purpose of the pending motion. If the motion is overruled, the concession is no longer effective. Appellants’ concession that no genuine issue of fact existed was made in support of its own motion for summary judgment. We do not think that the concession continues over into the Court’s separate consideration of appellee’s motion for summary judgment in his behalf after appellants’ motion was overruled. M. Snower & Co. v. United States, 7 Cir., 140 F.2d 367, 369.” (Emphasis supplied.)

Under these authorities defendant’s admission that there was no genuine issue of material fact involved in its motion for summary judgment admitted, for the purpose of the motion, that, upon the issue presented by the motion, no question of fact existed. Defendant, in support of its motion, raised the one question of whether the file wrappers of certain patents disclosed such defects in the prosecution and allowance of the patent in suit as had been held fatal by the Supreme Court in the Muncie Gear case. Under that motion, if the court so construed the file wrapper history as to violate the teaching of Muncie, there being no dispute as to the facts involved, but only those disclosed in the file wrappers, it would have been perfectly justified in *703 concluding that upon this, the sole issue presented, there was no genuine issue of fact and could have properly proceeded to a finding of invalidity. In other words, the issue presented was whether, as a matter of law, the patent was invalid upon the narrow ground urged.

The court should not have proceeded further and disposed of all other issues raised in the case, unless the record discloses some justification for such action, either by stipulation or by admission. Plaintiff asserts that the record contains such stipulations and admissions as conferred upon the court the power to dispose of the whole case. In that respect, it relies upon the following facts. The motion asserted that there was no genuine issue of material fact. The parties stipulated that the patent, if valid, was infringed by defendant in the manufacture and sale of a portable blow-torch. Counsel for defendant stated that the admission of infringement went only to the blow-torch and not to the other accused structures and that he had good reason to believe the patent invalid as not representing invention over the prior art. Defendant Knapp-Monarch entered its appearance to join in the defense of non-validity and non-infringement. Its answer, as well as that of Pressure, set up various prior art references in support of invalidity.

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Bluebook (online)
234 F.2d 700, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prepo-corporation-v-pressure-can-corporation-and-william-b-hinn-ca7-1956.