Seed Co. v. Westerman

62 F. Supp. 3d 56, 111 U.S.P.Q. 2d (BNA) 1976, 2014 WL 3746957, 2014 U.S. Dist. LEXIS 104998
CourtDistrict Court, District of Columbia
DecidedJuly 30, 2014
DocketCivil Case No. 8-00355 (RJL)
StatusPublished
Cited by5 cases

This text of 62 F. Supp. 3d 56 (Seed Co. v. Westerman) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seed Co. v. Westerman, 62 F. Supp. 3d 56, 111 U.S.P.Q. 2d (BNA) 1976, 2014 WL 3746957, 2014 U.S. Dist. LEXIS 104998 (D.D.C. 2014).

Opinion

[Dkt. ## 127, 128, 129]

MEMORANDUM OPINION

RICHARD J. LEON, United States District Judge

Plaintiffs Seed Company Limited (“Seed”) and Shigeru Tamai (“Tamai”) (together “plaintiffs”)1 brought this action on February 28, 2008 against the Westerman defendants2 and the Kratz defendants3 [59]*59(together “defendants”), seeking damages for alleged legal malpractice. See Complaint (“Compl.”) [Dkt. # l].4 Now before the Court are defendants’ Motions for Summary Judgment and plaintiffs’ Motion for Partial Summary Judgment. See Wes-terman Defendants’ Motion for Summary Judgment (“Westerman MSJ”) [Dkt. # 127]; Kratz Defendants’ Motion for Summary Judgment (“Kratz MSJ”) [Dkt. # 128]; Plaintiffs’ Motion for Partial Summary Judgment (“Pis.’ MSJ”) [Dkt. # 129]. Upon consideration of the parties’ pleadings, relevant law, and the entire record in this case, the Westerman defendants’ Motion for Summary Judgment is GRANTED, the Kratz defendants’ Motion for Summary Judgment is GRANTED, and the plaintiffs’ Motion for Partial Summary Judgment is DENIED.

BACKGROUND

This legal malpractice case is based on the defendants’ alleged negligence in failing to attach an English-language translation of plaintiffs’ international stage patent application to a motion filed in an interference action before the United States Patent and Trademark Office (“USPTO”), and for providing erroneous legal advice that resulted in plaintiffs rejecting two settlement offers related to the interference action. See Am. Compl. at ¶ 1.

On July 31, 1991, Seed filed Japanese Patent Application No. 3-68371 (“JP ’371 application”) for a corrective tape,dispenser, listing Tamai as the inventor. See Pis.’ Facts at ¶ 12; Westerman Defendants’ Statement of Undisputed Material Facts (‘Westerman Facts”) at ¶ 1 [Dkt. # 127-2]; Kratz Facts at ¶ 2. Seed filed the JP '371 application in the Japanese language only. See Pis.’ Facts at ¶ 12. On July 24, 1992, Seed filed Patent Cooperation Treaty Application No. PCT/JP92/100947 (“PCT '947 application”) — in Japanese — containing claims virtually identical to those in the JP ’371 application. See Pis.’ Facts at ¶ 13; Westerman Facts at ¶ 2; Kratz Facts at ¶ 3. On March 13, 1993 Seed— acting through Mr. Kenji Itami and the Itami Patent Office (“Itami”) — engaged the Kratz defendants5 to act as legal counsel in prosecuting the national stage of the PCT '947 application before the USPTO. See Pis.’ Facts at ¶ 14; Westerman Facts at ¶ 3; Kratz Facts at ¶ 4. The Kratz defendants filed United States Patent Application No. 08/030,183 (“ '183 application”) — the national stage of the PCT '947 application — with the USPTO on March 29, 1993. See Pis.’ Facts at ¶ 16; Wester-man Facts at ¶ 4; Kratz Facts at ¶ 5. The '183 application is — for all intents and purposes — -an English translation of the PCT '947 application. See Pis.’ Facts at ¶ 16; Westerman Facts at ¶ 4.

On February 7, 1994, Christopher Stevens (“Stevens”) — another inventor — filed United States Patent Application No. 08/192,471 with the USPTO for a corrective tape dispenser similar to the one described in Seed’s '183 application. See Pis.’ Facts at ¶ 18; Westerman Facts at ¶ 7; Kratz Facts at ¶ 6. On February 15, 1994, the Kratz defendants filed United States Patent Application No. 08/196,839 (“ '839 application”) — as a continuation-in-[60]*60part of the '183 application — with the USP-TO. See Pis.’ Facts at ¶ 17; Westerman Facts at ¶ 6; Kratz Facts at ¶ 7. On February 28, 1995, the USPTO issued Stevens U.S. Patent No. 5,393,368 (“Stevens patent”) for his design.6 See Pis.’ Facts at ¶ 18; Westerman Facts at ¶ 7; Kratz Facts at ¶ 8.

On May 9, 1997, the USPTO declared Patent Interference No. 103,662 (“Interference”) between the plaintiffs’ '839 application and the Stevens patent, seeking to determine which of the two had priority, as both sought protection for inventions that were not patentably distinct. See Pis.’ Facts at ¶ 21; Westerman Facts at ¶ 8; Kratz Facts at ¶ 8. Plaintiffs and Stevens — through their attorneys — both filed motions with the USPTO under 37 C.F.R. § 1.633(f), seeking to have their' applications back-dated to the respective overseas filing dates, in order to be accorded the benefit of the earliest possible priority date. See Pis.’ Facts at ¶¶ 25-26; Wester-man Facts at ¶ 9; Kratz Facts at ¶ 9. In its motion (“Priority Motion”), Seed sought to be accorded the benefit of the filing dates of the JP ’371 application and the PCT '947 application — July 31, 1991 and July 24, 1992, respectively. See Pis.’ Facts at ¶ 26; Westerman Facts at ¶ 9; Kratz Facts at ¶ 9. The Kratz defendants attached an English-language translation of the JP '371 application to the Priority Motion, however, they did not attach an English translation of the PCT '947 application. See Pis.’ Facts at ¶¶ 27-28; Wes-terman Facts at ¶ 10; Kratz Facts at ¶ 10. On June 25, 2002, the USPTO ruled in Seed’s favor, awarding the priority filing date of the JP '371 application — July 31, 1991, but denied Seed the benefit of the PCT ’947 filing date — July 24, 1992.7 See Pis.’ Facts at If 29; Westerman Facts at ¶ 11; Kratz Facts at ¶ 10. The USPTO based its decision — denying Seed the benefit of the PCT '947 application filing date— on the fact that the Priority Motion did not attach an English language translation of the PCT '947 application.8 See Pis.’ Facts at ¶ 29; Westerman Facts at ¶ li; Kratz Facts at ¶ 10.

On May 12, 2003, Stevens’ attorneys filed a Notice of Appeal of the USPTO’s decision with the United States Court of Appeals for the Federal Circuit. See Pis.’ Facts at ¶ 33; Westerman Facts at ¶ 19; Kratz Facts at ¶ 19. On October 1, 2003— while Stevens’ appeal was pending before [61]*61the Federal Circuit — defendants Wester-man, Kong, and Kenehan left the Kratz defendants’ law firm9 and — along with several other attorneys — founded the law firm of Westerman, Hattori, Daniels & Adrian, LLP (‘Westerman firm”). See Pis.’ Facts at ¶ 34; Westerman Facts at ¶ 28; Kratz Facts at ¶ 20. Following the formation of the Westerman firm in October 2003, the Kratz defendants were discharged as counsel, and the Westerman defendants continued to represent plaintiffs with regards to the '839 application, including the Interference proceedings and Stevens’ appeal of the USPTO decision to the Federal Circuit. See Pis.’ Facts at ¶ 35; Kratz Facts at ¶ 21.

On January 14, 2004, Sanford — owner of the Stevens’ patent — offered to settle the Interference with plaintiffs. See Am. Compl. at ¶ 28; Westerman Facts at ¶ 23; Kratz Facts at ¶ 22. Specifically, the settlement offer proposed that

Sanford will grant to Seed a royalty-free, perpetual, non-exclusive license under Sanford’s U.S. patent relating to the transverse action tape-dispenser[.]
Seed will grant to Sanford a royalty-free, perpetual, non-exclusive license under Seed’s patents outside the U.S. relating to the transverse action tape dispenser.

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Related

Seed Company Limited v. Westerman
District of Columbia, 2019
Seed Co. v. Westerman Ex Rel. Estate of Westerman
832 F.3d 325 (D.C. Circuit, 2016)
Rocha v. Brown & Gould, LLP
101 F. Supp. 3d 52 (District of Columbia, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
62 F. Supp. 3d 56, 111 U.S.P.Q. 2d (BNA) 1976, 2014 WL 3746957, 2014 U.S. Dist. LEXIS 104998, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seed-co-v-westerman-dcd-2014.