Truswal Systems Corp. v. Hydro-Air Engineering, Inc.

813 F.2d 1207, 9 Fed. R. Serv. 3d 1274, 2 U.S.P.Q. 2d (BNA) 1034, 1987 U.S. App. LEXIS 166
CourtCourt of Appeals for the Federal Circuit
DecidedMarch 11, 1987
DocketAppeal 86-1390
StatusPublished
Cited by183 cases

This text of 813 F.2d 1207 (Truswal Systems Corp. v. Hydro-Air Engineering, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Truswal Systems Corp. v. Hydro-Air Engineering, Inc., 813 F.2d 1207, 9 Fed. R. Serv. 3d 1274, 2 U.S.P.Q. 2d (BNA) 1034, 1987 U.S. App. LEXIS 166 (Fed. Cir. 1987).

Opinions

MARKEY, Chief Judge.

Appeal from an order of the United States District Court for the Eastern District of Missouri granting Hydro-Air Engineering, Inc.’s (Hydro-Air’s) motion to quash a subpoena served by Truswal Systems Corp. (Truswal). No. 86 Misc. 178 (E.D.Mo. May 16, 1986). We vacate the order in part and remand.

Background

Truswal owns U.S. Patent Re. 31,807 (’807 patent), entitled “Truss-Web Connectors”, issued January 22, 1985 to James Knowles. The claimed invention relates to wooden truss-like joists for use in constructing floors and roofs.

On January 22, 1985, Truswal sued Gang-Nails Systems, Inc. (Gang-Nails) in the Southern District of Florida, No. 85-171-Civ. (Florida action), for infringement of the ’807 patent. That same day, Truswal wrote to Hydro-Air, accusing it of infringement. Because of the venue statute, 28 U.S.C. § 1400(b), Truswal could not sue both alleged infringers in the same action. Though Hydro-Air had protested issuance of the '807 patent in the Patent and Trademark Office under 37 C.F.R. § 1.291, it neither intervened in the Florida action nor sought a declaratory judgment in any court.

On April 29, 1986, Truswal served notice in the Florida action that it would depose officers of Hydro-Air in St. Louis, Missouri on May 16, two weeks before the date set for completion of non-expert discovery in the Florida action. On May 1, the Missouri district court issued a subpoena ordering Hydro-Air to designate an officer to testify and to produce documents relating to its product samples, drawings, manufacturing methods, the design and operation of its product, comparative test data, and sales information.

On May 12, Hydro-Air moved to quash pursuant to Fed.R.Civ.P. 45(b), on the grounds that “the information sought is not reasonably calculated to lead to the discovery of admissible evidence in the pending litigation, and that the discovery of such information would be unreasonable, unduly oppressive and burdensome.”

At a May 16 hearing, the parties agreed to delete some demands from the subpoena, leaving only those for test data and sales information. Hydro-Air argued that the test data and sales information is confidential and would not be adequately protected by any protective order, including one employed in the Florida action and proposed by Truswal for use here. Truswal asserted that Hydro-Air’s comparative testing and sales information is relevant to its proof in rebuttal of an anticipated defense of obviousness of the ’807 patent in the Florida action. Because neither party submitted testimony or affidavits, the record consists solely of attorney argument and colloquy.

On that same May 16, the district court issued an order which in its entirety reads:

IT IS HEREBY ORDERED that the motion of Hydro-Air Engineering, Inc. to quash the subpoena duces tecum served upon it by plaintiff be and is granted with respect to the requested sales information and product test results.
Plaintiff at a hearing held May 16, 1986 presented the Court with case authority in which records of sales by party-defendants of allegedly infringing products were held discoverable as leading to evidence of commercial success of the patented product. None of these cases supports production of this information by non-party witnesses.

[1209]*1209The part of the order quashing the subpoena for comparative test data remains unchallenged. Truswal appeals from only that part of the order that quashes the subpoena for Hydro-Air’s sales information. That part of the subpoena sought:

Any and all documents relating to the dollar amount and number of units sold of Posi-Strut v-shaped metal web connectors by year or month, or if such documents do not exist then any and all documents showing the dollar amount and number of units sold of Posi-Strut v-shaped metal web connectors.

The part of the subpoena on appeal also sought the testimony of a person on:

The number of units and dollar value of all sales of v-shaped metal web connectors sold by Hydro-Air or any related company from March 14, 1978 to date.

ISSUE

Whether on the present record the district court abused its discretion in granting the motion to quash the subpoena for the sales information sought.

OPINION

A. Appealability

Truswal appeals an order quashing a subpoena issued to a nonparty. The order was entered in a supplementary proceeding brought in one district to obtain evidence for use in an action pending in another. Because a party in Truswal’s position would effectively be denied appellate review, courts of appeals have uniformly held such orders final and appealable. See, e.g., Heat & Control, Inc. v. Hester Industries, Inc., 785 F.2d 1017, 228 USPQ 926 (Fed.Cir.1986); Ariel v. Jones, 693 F.2d 1058 (11th Cir.1982); National Life Insurance Co. v. Hartford Accident and Indemnity Co., 615 F.2d 595 (3d Cir.1980); Republic Gear Co. v. Borg-Warner Corp., 381 F.2d 551 (2d Cir.1967); Horizons Titanium Corp. v. Norton Co., 290 F.2d 421 (1st Cir.1961); see also 9 J. Moore, B. Ward & J. Lucas, Moore’s Federal Practice ¶ 110.13[2], at 157 (1986) (Moore’s Federal Practice); Annot., 36 A.L.R.Fed. 763, 840 (1975).

B. Quashing the Subpoena

An order quashing a subpoena is not unique to patent law. Hence, we would normally apply the law of the Eighth Circuit to the merits of the order. Heat & Control, Inc., 785 F.2d at 1022 n. 4, 228 USPQ at 929 n. 4; Panduit Corp. v. All States Plastic Manufacturing Co., 744 F.2d 1564, 1572-75, 223 USPQ 465, 469-72 (Fed.Cir.1984). Because there is a dearth of Eighth Circuit case law applicable to the merits of the appealed order, however, we must look to other regional circuits and to the Federal Rules of Civil Procedure. See Loctite Corp. v. Ultraseal Ltd., 781 F.2d 861, 875, 228 USPQ 90, 99-100 (Fed.Cir.1985).

The Federal Rules of Civil Procedure allow examination of a deponent concerning “any matter, not privileged, which is relevant to the subject matter involved in the pending action.” Fed.R.Civ.P.

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813 F.2d 1207, 9 Fed. R. Serv. 3d 1274, 2 U.S.P.Q. 2d (BNA) 1034, 1987 U.S. App. LEXIS 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/truswal-systems-corp-v-hydro-air-engineering-inc-cafc-1987.