Procter & Gamble Co. v. Paragon Trade Brands, Inc.

15 F. Supp. 2d 406, 41 Fed. R. Serv. 3d 1506, 1998 U.S. Dist. LEXIS 12050, 1998 WL 458623
CourtDistrict Court, D. Delaware
DecidedJuly 31, 1998
DocketCivil Action 94-16 LON
StatusPublished
Cited by4 cases

This text of 15 F. Supp. 2d 406 (Procter & Gamble Co. v. Paragon Trade Brands, 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
Procter & Gamble Co. v. Paragon Trade Brands, Inc., 15 F. Supp. 2d 406, 41 Fed. R. Serv. 3d 1506, 1998 U.S. Dist. LEXIS 12050, 1998 WL 458623 (D. Del. 1998).

Opinion

OPINION

LONGOBARDI, Senior District Judge.

Plaintiff and counterclaim defendant The Procter & Gamble Company, (“P & G”), commenced this action on January 20, 1994, alleging that defendant and counterclaim plaintiff Paragon Trade Brands, (“Paragon”), infringed two P & G patents, Lawson U.S. Patent No. 4,695,278 (the “Lawson” patent) and Dragoo U.S. Patent No. 4,795,454 (the “Dragoo” patent). Paragon answered and denied that its products infringe the Lawson and Dragoo patents and sought a declaratory judgment that these patents are invalid, unenforceable, and not infringed. Paragon also asserted counterclaims for violations of federal antitrust law and the Washington Consumer Protection Act (the “antitrust counterclaim”) and for infringement of Pieniak U.S. Patent No. 5,098,423 (the “Pieniak” patent). P & G denied liability for both the antitrust counterclaim and the counterclaim for infringement of the Pieniak patent, and sought a declaratory judgment that the Pieniak patent is invalid, unenforceable, and not infringed.

In a Memorandum Opinion and Order dated March 28, 1996, this Court granted P & G’s motion for summary judgment and dismissed the antitrust counterclaim. The Court conducted a bench trial on the other claims and counterclaims from February 3, 1997 through February 20, 1997. In an Opinion and Judgment Order dated December 30, 1997, the Court ruled that Paragon infringed both the Lawson and Dragoo patents; that Paragon failed to establish by clear and convincing evidence that the Lawson and Dragoo patents are invalid; that P & G did not infringe the Pieniak patent; and that P & G demonstrated that the Pieniak claims at issue are invalid as anticipated and obvious, and unenforceable as a result of inequitable conduct. The Court therefore awarded P & G damages on its claims that Paragon infringed the Lawson and Dragoo patents.

Presently before the Court is Paragon’s motion for a new trial or to alter or amend the judgment, pursuant to Rule 59 of the Federal Rifles of Civil Procedure. In this motion, Paragon raises three grounds on which its asserts it is entitled to relief from the judgment in this case. First, Paragon contends that it is entitled to a modification of the judgment or a new trial because the Lawson patent is invalid in light of newly discovered evidence. Second, it argues that newly discovered evidence creates a material issue of fact as to its antitrust counterclaim. Finally, Paragon asserts that this Court should set aside its ruling on the validity of the Lawson patent based on evidence that was inadvertently omitted from the record in this case.

I.

Rule 59(a) of the Federal Rules of Civil Procedure permits a party to seek relief from a judgment after its entry via a motion for a new trial or a motion to alter or amend the judgment. The decision on whether or not to grant Rule 59 relief rests within the sound discretion of the trial court. See, e.g., Allied Chem. Corp. v. Daiflon, Inc., 449 U.S. 33, 36, 101 S.Ct. 188, 66 L.Ed.2d 193 (1980). *409 There is no fixed standard that applies to review a Rule 59 motion. 12 James Wm. Moore, Moore’s Federal Practice § 59.13[1] (3d ed.1998). The standard instead varies depending upon the grounds on which Rule 59 relief is sought. Id.

The grounds for granting a motion for new trial or to alter or amend the judgment include the availability of newly discovered evidence and the need to correct clear error of law or to prevent manifest injustice. Compass Tech., Inc. v. Tseng Laboratories, Inc., 71 F.3d 1125, 1130 (3d Cir.1995); North River Ins. Co. v. CIGNA Reinsurance Co., 52 F.3d 1194, 1218 (3d Cir.1995); Mobil Oil Corp. v. Amoco Chemicals Corp., 915 F.Supp. 1333, 1377 (D.Del.1994). When a Rule 59 motion for a new trial is premised on newly discovered evidence, the burden is on the movant to demonstrate that the new evidence (1) is material and not merely cumulative; (2) could not have been discovered before trial through the exercise of reasonable diligence and (3) would probably have changed the outcome of the trial. Compass Tech., 71 F.3d at 1130. 1

A Rule 59 motion may not be used as a vehicle to advance additional arguments that a party could have made before judgment but neglected to do so. Mobil, 915 F.Supp. at 1377. As this Court opined:

Unless the court finds that it would be unjust to enforce the decision rendered, a party will not be permitted to reopen a case for the purpose of introducing evidence to meet the issues raised at trial, when that evidence was available and known to the party at the time of trial. Similarly, a party which has litigated the case under one legal theory generally should not be permitted to reopen in order to introduce evidence in support of another legal theory, or in support of issues not raised by that party at trial. If the party had an opportunity to litigate those issues, but chose not to, it should not be permitted to prolong the litigation any further. Otherwise, no litigation would end, so long as a creative attorney could develop alternative theories of relief.

Bell Tel. Laboratories, Inc. v. Hughes Aircraft Co., 73 F.R.D. 16, 20 (D.Del.1976) (citations omitted), aff'd 564 F.2d 654 (3d Cir.1977).

II.

A.

In its first argument in support of its motion, Paragon asserts that the Court should reconsider its conclusion that the Lawson patent is not invalid pursuant to 35 U.S.C. § 102(g), in light of newly discovered evidence. At trial, Paragon contended that a patent application and invention disclosure of Kenneth Enloe, an inventor working for a competitor of the parties, constitutes a prior invention which anticipates the Lawson patent under section 102(g). 2 The Court held that Paragon failed to establish anticipation by prior invention, finding that Paragon had not demonstrated by clear and convincing evidence that Mr. Enloe did not abandon, suppress, or conceal his prior invention. Paragon asserts that this conclusion is rendered fundamentally flawed by the issuance of Enloe United States Patent No. 5,599,338 (the “ ’338 patent”) on February 4, 1997, the second day of the trial in this action. Paragon argues that the Court should modify its judgment or grant a new trial on this issue because the ’338 patent refutes the conclusion that Mr. Enloe abandoned, suppressed, or concealed his prior invention.

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15 F. Supp. 2d 406, 41 Fed. R. Serv. 3d 1506, 1998 U.S. Dist. LEXIS 12050, 1998 WL 458623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/procter-gamble-co-v-paragon-trade-brands-inc-ded-1998.