Ultra-Temp Corp. v. Advanced Vacuum Systems, Inc.

189 F.R.D. 17, 1999 U.S. Dist. LEXIS 15255, 1999 WL 795853
CourtDistrict Court, D. Massachusetts
DecidedSeptember 27, 1999
DocketNo. Civ.A. 93-10102-RBC
StatusPublished
Cited by6 cases

This text of 189 F.R.D. 17 (Ultra-Temp Corp. v. Advanced Vacuum Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ultra-Temp Corp. v. Advanced Vacuum Systems, Inc., 189 F.R.D. 17, 1999 U.S. Dist. LEXIS 15255, 1999 WL 795853 (D. Mass. 1999).

Opinion

MEMORANDUM AND ORDER ON MOTION FOR ATTORNEY FEES (#218)

COLLINGS, Chief United States Magistrate Judge.

I. Introduction

Short of trial, on November 9, 1998, judgment entered on all six counts of the amended complaint in favor the defendant Advanced Vacuum Systems, Inc. (“AVS”) as against the plaintiff Ultra-Temp Corporation [19]*19(“Ultra-Temp”).1 Given that this is a patent case, appeals were taken to the Federal Circuit. On April 16, 1999, AVS’ appeal was dismissed upon agreement of the parties. (#236) Approximately four months thereafter on August 4, 1999, the Federal Circuit summarily affirmed the district court judgment in an unpublished disposition. See Ultra-Temp Corporation v. Advanced Vacuum Systems, Inc., 1999 WL 591357 (Fed.Cir.).

In late November of 1998, AVS filed a Motion For Attorney Fees (#218)2 which has been held in abeyance pending the outcome of the parties’ appeals. With the Federal Circuit now having rendered its decision and AVS having been confirmed as the prevailing party, the time has come to address the defendant’s outstanding motion.

II. Discussion

AVS contends that Ultra-Temp did not properly investigate its claims of infringement prior to instituting the instant suit and, further, that the plaintiff pursued this litigation in bad faith. As a consequence, it is argued that this case should be found to be “exceptional” and AVS awarded attorney fees pursuant to the provisions of 35 U.S.C. § 285, Fed.R.Civ.P. 11, and 28 U.S.C. § 19273. Ultra-Temp disputes the defendant’s assertions.

A. Applicable Law

(1) Title 35 U.S.C. § 285

It is perhaps best to begin with a brief survey of the law since it carves out an exception to the general rule, the so-called American Rule, that parties bear their own attorney’s fees. The principal basis of the defendant’s motion is 35 U.S.C. § 285 which provides that “[t]he court in exceptional eases may award reasonable attorney fees to the prevailing party.” AVS, as the party seeking the sanction, “bears the burden of establishing, by clear and convincing evidence under a totality of the circumstances, that the instant case is ‘exceptional.’ ” Queen’s University At Kingston v. Kinedyne Corporation, 1996 WL 370170*1 (D.Kan.) citing Eltech Sys. Corp. v. PPG Indus., Inc., 903 F.2d 805, 811 (Fed.Cir.1990); Imagineering, Inc. v. Van Klassens, Inc., 53 F.3d 1260, 1267 (Fed.Cir.1995) (“To prevail, [movant] had to show by clear and convincing evidence that [nonmovant’s] conduct was exceptional.”); Machinery Corporation of America v. Gullfiber AB, 774 F.2d 467, 471 (Fed.Cir. 1985) (“only after the prevailing party has established the exceptional nature of the case by clear and convincing evidence should the district court decide whether or not to make the award [of attorney fees].”). Indeed, the Federal Circuit has instructed that

When considering a request for an award of attorney fees under 35 U.S.C. § 285, the trial judge undertakes a two-step inquiry: he or she must determine whether there is clear and convincing evidence that the case is “exceptional,” and, if so, whether an award of attorney fees to the prevailing party is warranted.

Interspiro USA Inc. v. Figgie Intern. Inc., 18 F.3d 927, 933 (Fed.Cir.1994) (citations omitted).

Lastly, “[t]he award of attorney fees under § 285 is within the discretion of the court.” Cambridge Products, Ltd. v. Penn Nutrients, Inc., 962 F.2d 1048, 1050 (Fed.Cir. 1992).

As defined in relevant decisions,

A ease is “exceptional” where the plaintiff has engaged in “vexatious or unjustified litigation” or “frivolous suit.” Beckman Instruments, Inc. v. LKB Produkter AB,
[20]*20892 F.2d 1547, 1551 (Fed.Cir.1989). A suit is frivolous where the patentee knew, or should have known by reasonable investigation, that the suit was groundless. Haynes Int’l, Inc. v. Jessop Steel Co., 8 F.3d 1573, 1579 (Fed.Cir.1993). Similarly, a court may infer bad faith where a “patentee is manifestly unreasonable in assessing infringement, while continuing to assert infringement in court.” Eltech Sys. Corp. v. PPG Indus., 903 F.2d 805, 811 (Fed.Cir.1990).

Enpat, Inc. v. Microsoft Corporation, 26 F.Supp.2d 811, 813 (E.D.Va.1998). As limned by the Federal Circuit, “conduct short of fraud, but in excess of simple negligence is sufficient for deciding that the case is ‘exceptional’ under § 285.” Machinery Corp. of America v. Gullfiber AB, 774 F.2d 467, 473 (Fed.Cir.1985) (citations omitted).

2. Rule 11, Fed.R.Civ.P.

A second basis for the defendant’s motion is Rule 11, Fed.R.Civ.P. The Complaint in this case was filed on January 19, 1993. Since the current version of Rule 11 became effective on December 1,1993, it is not applicable to the filing of the Complaint or the steps taken (or not taken) prior to filing. The version of Rule 11 which was in effect at that time read as follows:

The signature of a party or attorney constitutes a certificate by the attorney or party by the signer ... that to the best of the signer’s knowledge, information and belief formed after reasonable inquiry it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification or reversal of existing law, and that it is not interposed for any improper purpose ... If a pleading, motion, or other paper is signed in violation of this rule, the court, upon motion or upon its own initiative, shall impose upon the person who signed it, a representative party, or both, an appropriate sanction, which may include an order to pay ... a reasonable attorney’s fee.

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Bluebook (online)
189 F.R.D. 17, 1999 U.S. Dist. LEXIS 15255, 1999 WL 795853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ultra-temp-corp-v-advanced-vacuum-systems-inc-mad-1999.