Transclean Corp. v. Bridgewood Services, Inc.

101 F. Supp. 2d 788, 2000 U.S. Dist. LEXIS 9261, 2000 WL 862843
CourtDistrict Court, D. Minnesota
DecidedApril 21, 2000
DocketCiv. 97-2298(RLE)
StatusPublished
Cited by21 cases

This text of 101 F. Supp. 2d 788 (Transclean Corp. v. Bridgewood Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transclean Corp. v. Bridgewood Services, Inc., 101 F. Supp. 2d 788, 2000 U.S. Dist. LEXIS 9261, 2000 WL 862843 (mnd 2000).

Opinion

ORDER

ERICKSON, United States Magistrate Judge.

I. Introduction

This matter came before the undersigned United States Magistrate Judge, pursuant to the consent of the parties, as authorized by Title 28 U.S.C. § 636(c), upon the parties’ Motions in limine. Deeming oral argument to be unnecessary, we have considered these Motions on the parties’ written submissions. For reasons which follow, we deny the Motion of the Plaintiff Transclean Corporation (“Tran-sclean”) to Exclude Evidence of Inequitable Conduct, to Exclude Sample Machines and Photographs, to Exclude Evidence Based upon the Summary Judgment Memorandum Order, and to Exclude Exhibit F of the Memmolo Declaration, we grant Transclean’s Motion to Exclude Evidence of Other Infringement and Other Lawsuits, to Exclude the Supplemental Expert Report of Eugene L. Johnson, and to Exclude Evidence of Other Advertising and Memmolo’s Opinion About Advertising, and we grant in part, its Motion to Strike 282 Notice of Prior Art.

*791 II. Discussion

A. Plaintiffs’ Motion to Exclude Evidence of Inequitable Conduct.

In this Motion in limine, Transclean seeks to prevent the introduction of evidence, concerning the inequitable conduct defense of the Defendants (hereinafter “Bridgewood”). Transclean contends that their patenN-U.S.Patent No. 5,318,080 (the “Viken Patent”) — which was issued to the Plaintiff James Viken (“Viken”) — was infringed upon by a similar device, which was manufactured by Bridgewood, and which was patented by Jerry Burman (“Burman”), on June 4, 1996, as U.S.Patent No. 5,522,474 (the “Burman Patent”). Bridgewood denies that its device infringed the Viken Patent, and affirmatively maintains that the Viken Patent is invalid, or unenforceable, on several grounds — one of which being the alleged inequitable conduct of Viken, in securing the Viken Patent. As a result, while Transclean seeks the Court’s intervention in determining whether the issue of inequitable conduct is meritorious — albeit, outside of the presence of the Jury — -Bridgewood proposes that we enlist the assistance of the Jury, through the means of Special Interrogatories, so as to aid our ultimate resolution of this issue.

In light of the fact that patent pro&ecutions are secret, non-adversarial, ex pane proceedings, inventors, registered patent agents, and registered patent attorneys, are held to a high ethical standard in their dealings with the Patent Office (“PTO”), and particularly with respect to the disclosure of their knowledge, concerning the state of the art, at the time of the patent application. Patent applicants, and their agents, “are required to prosecute patent applications in the PTO with candor, good faith, and honesty.” Elk Corp. v. GAF Bldg. Materials Corp., 168 F.3d 28, 30 (Fed.Cir.1999), cert. denied, — U.S. -, 120 S.Ct. 178, 145 L.Ed.2d 150 (1999); see also, 37 C.F.R. § 1.56. A breach of this duty constitutes inequitable conduct, Molins PLC v. Textron, Inc., 48 F.3d 1172, 1178 (Fed.Cir.1995), which, when proven as an affirmative defense to infringement, renders an entire patent unenforceable. Baxter Int’l, Inc. v. McGaw, Inc., 149 F.3d 1321, 1332 (Fed.Cir.1998).

Since Kingsdown Medical Consultants, Inc. v. Hollister, Inc., 863 F.2d 867 (Fed.Cir.1988), the Federal Circuit has made it clear that inequitable conduct is an equitable matter, that is committed to the discretion of the Trial Court. In Paragon Podiatry Lab. v. KLM Labs., Inc., 984 F.2d 1182, 1190 (Fed.Cir.1993), the Federal Circuit confirmed that, since inequitable conduct was an equitable doctrine, there was no right to a Jury Trial. See also, Gardco Mfg., Inc. v. Herst Lighting Co., 820 F.2d 1209, 1212 (Fed.Cir.1987), quoting General Tire & Rubber Co. v. Watson-Bowman Assocs., Inc., 74 F.R.D. 139, 141 (D.Del.1977). Nevertheless, a number of cases have recognized that a Trial Judge, in his or her discretion, is free to seek Jury guidance on the resolution of factual issues, which bear upon the defense, through the use of special Jury Verdict forms, and/or Interrogatories, and that the parties can consent to having a Jury resolve the issue. See, Hebert v. Lisle Corp., 99 F.3d 1109, 1114 (Fed.Cir.1996).

The Federal Circuit has recognized a variety of ways in which a District Court may resolve an issue of inequitable conduct during a Jury Trial. Id. As an equitable defense, the determination of inequitable conduct is committed to the discretion of the Trial Court, and reviewable on appeal for abuse of discretion. Id.; see also Baxter Healthcare v. Spectramed, Inc., 49 F.3d 1575, 1584 (Fed.Cir.1995). However, as we have noted, the Trial Judge may properly submit the issue to the Jury in the form of Special Interrogatories under Rule 49(a), Federal Rules of Civil Procedure, on the factual issues of materiality and intent. See, Hebert v. Lisle Corp., supra at 1114. Finally, with the consent of the parties, the Court may also submit the ultimate question of inequitable *792 conduct to the Jury. Id.; see also, Modine Mfg. Co. v. Allen Group, Inc., 917 F.2d 538, 541 (Fed.Cir.1990), cert. denied, 500 U.S. 918, 111 S.Ct. 2017, 114 L.Ed.2d 103 (wherein the parties agreed to submit the ultimate issue of inequitable conduct to the Jury for final determination).

Here, the parties have not consented to the Jury’s resolution of the factual validity of Bridgewood’s inequitable conduct defense. Although Transclean argues that, “[bjecause there is no right to a jury decision on the issue of inequitable conduct, underlying evidence related to the defense must be presented outside the jury,’’see, Plaintiffs’ Memorandum in Support of Motion to Exclude Evidence of Inequitable Conduct, at 2, we have found no authority which categorically imposes any such procedural requirement.

In our view, after having reviewed the pertinent authorities on point, absent a likelihood of prejudice, the preferable Trial procedure, so as to minimize disruption in the order of proof, and to’ preserve the ultimate role of the Jury as the factfinder, would be to submit Special Interrogatories, and Jury Instructions, to the Jury, on the facts of materiality, and intent, so that the Jury may advise us on their view as to the proper resolution of those quintessentially factual issues. .See, Dimick v.

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101 F. Supp. 2d 788, 2000 U.S. Dist. LEXIS 9261, 2000 WL 862843, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transclean-corp-v-bridgewood-services-inc-mnd-2000.