Werner Co. v. Louisville Ladder, Inc.

CourtDistrict Court, W.D. Kentucky
DecidedJanuary 20, 2023
Docket3:18-cv-00794
StatusUnknown

This text of Werner Co. v. Louisville Ladder, Inc. (Werner Co. v. Louisville Ladder, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Werner Co. v. Louisville Ladder, Inc., (W.D. Ky. 2023).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION

WERNER CO., Plaintiff/Counter Defendant,

v. Civil Action No. 3:18-cv-794-DJH-CHL

LOUISVILLE LADDER, INC., Defendant/Counter Claimant.

* * * * *

MEMORANDUM OPINION AND ORDER

Plaintiff Werner Co. moves for leave to file a second amended complaint. (Docket No. 54) Defendant Louisville Ladder, Inc. opposes the motion. (D.N. 55) For the reasons explained below, the Court will grant Werner’s motion. I. Werner initiated this action against Louisville Ladder on November 30, 2018, requesting a declaratory judgment of non-infringement of one or more claims of Louisville Ladder’s U.S. Patent No. 7,000,731 (the ’731 patent). (D.N. 1, PageID.1 ¶ 1) The ’731 patent is entitled “Multi- Material Cover for a Ladder Rail End.” (Id.) Werner initially alleged that since 2017, “Louisville Ladder has asserted that Werner infringes on one or more claims of the ’731 patent.” (Id., PageID.2 ¶ 7) Werner then filed an amended complaint adding Count II, invalidity of the ’731 patent under 35 U.S.C. §§ 102, 103, and/or 112, and Count III, unenforceability of the ’731 patent due to inequitable conduct. (D.N. 14, PageID.79–89 ¶¶ 17–69) The parties later filed a joint motion to stay the case pending the resolution of Werner’s petition for inter partes review by the Patent Trial and Appeal Board (PTAB). (D.N. 22) The Court granted the motion, and the case was stayed on June 12, 2019. (D.N. 23) On August 24, 2020, the PTAB issued a final decision determining that claims 8–16 and 19–20 of the ’731 patent were unpatentable (D.N. 30, PageID.179 ¶ 3) because the claimed subject matter was anticipated by and/or obvious in view of “the prior art 2001 Louisville Catalog, the prior art Plotner patent, and the prior art 2000 Werner Brochure.” (D.N. 54-3, PageID.272 ¶ 74) The PTAB also cancelled claims 8–16 and 19–20 of the ’731 patent based on the same prior art

references. (Id.) Louisville Ladder appealed the decision to the United States Court of Appeals for the Federal Circuit (D.N. 32, PageID.183 ¶ 4), and that court affirmed the PTAB’s decision. (D.N. 38, PageID.197 ¶ 7) The parties then agreed that Counts I and II of the amended complaint were moot, leaving Count III as the sole remaining claim. (D.N. 40, PageID.200 ¶ 9) The parties and their representatives engaged in a settlement conference but were unable to come to an agreement. (D.N. 47) The Court subsequently issued a Scheduling Order for the resolution of this case. (D.N. 53) Werner now moves for leave to file a second amended complaint to add thirty-nine allegations in support of its claim for patent unenforceability due to inequitable conduct (Count

III). (D.N. 54; see also D.N. 54-3, PageID.271–78 ¶¶ 70–108) The new allegations specifically address the materiality of the undisclosed prior art and Louisville Ladder’s intent to deceive. (Id.) Paragraphs 70–79 support the materiality of the undisclosed prior art and are based on the findings and decisions of the PTAB and the Federal Circuit in the related patent litigation. (D.N. 54-1, PageID.248; see also D.N. 54-3, PageID.271–72 ¶¶ 70–79) Paragraphs 80–108, which Werner states are based on newly discovered facts, allege that Louisville Ladder intentionally withheld critical information and deceived the Mexican Patent Office on at least two occasions and the U.S. Patent Office on at least four occasions to secure patents that covered features it did not invent. (D.N. 54-1, PageID.255; D.N. 54-3, PageID.273–78 ¶¶ 80–108) Werner asserts that Louisville Ladder did not disclose the following information: (1) the prior art 2001 Louisville Catalog, the prior art Plotner patent, or the prior art Werner Brochure to the Mexican Patent Office (D.N. 54- 3, PageID.273 ¶ 83), and (2) the Multipurpose Ladder or its related advertisement to the U.S. Patent Office. (Id., PageID.278 ¶ 107; see also id., PageID.271–78 ¶¶ 70–108) Louisville Ladder opposes the amendment, arguing that it would “cause unfair prejudice to Louisville Ladder, impose

unwarranted burdens on the Court, and unduly delay resolution of this case,” and is futile. (D.N. 55, PageID.306; id., PageID.307) II. Generally, a court should freely grant leave to amend. See Fed R. Civ. P. 15(a)(2). Sixth Circuit precedent “manifests ‘liberality in allowing amendments to a complaint.’” Parchman v. SLM Corp., 896 F.3d 728, 736 (6th Cir. 2018) (quoting Newberry v. Silverman, 789 F.3d 636, 645 (6th Cir. 2015)). Nevertheless, a court need not grant a motion to amend when the reason for amendment is improper, “such as undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue of allowance of the amendment, futility of amendment, etc.” Id.

(quoting Foman v. Davis, 371 U.S. 178, 182 (1962)). The Court will consider whether Werner has provided a proper reason for the amendment. A. Unfair Prejudice, Unwarranted Burden, and Undue Delay “Ordinarily, delay alone[] does not justify denial of leave to amend.” Sims v. Atrium Med. Corp., 349 F. Supp. 3d 628, 636 (W.D. Ky. 2018) (quoting Morse v. McWhorter, 290 F.3d 795, 800 (6th Cir. 2002)). But, “at some point[,] delay will become undue, placing an unwarranted burden on the court, or will become prejudicial, placing an unfair burden on the opposing party.” Id. (quoting TIG Ins. Co. v. Hosp. Corp. of Am., No. 1:11CV-00043-JHM, 2014 WL 3118863, at *7 (W.D. Ky. July 7, 2014)). “Courts typically find undue delay in cases that are post judgment . . . and in cases where discovery has closed and dispositive motions deadlines have passed.” Id. at 636–37 (quoting TIG Ins. Co., 2014 WL 3118863 at *7). Louisville Ladder argues that granting Werner leave to amend would “cause unfair prejudice to Louisville Ladder, impose unwarranted burdens on the Court, and unduly delay resolution of this case.” (D.N. 55, PageID.306) To support its unfair prejudice argument,

Louisville Ladder asserts the following: (1) “[t]he parties are, or at least should be, prepared for trial, since they have been litigated [sic] the underlying validity of the ‘731 patent for nearly four years”; (2) “Werner’s proposed amendment” is “an excuse to reopen discovery on six additional patents”; (3) “Louisville Ladder would be forced to expend additional and significant amounts of time and resources engaging in such discovery”; (4) “Werner does not assert any new claims based on the six [additional] patents or seek any relief related to these patents”; and (5) the additional patents are “entirely irrelevant and immaterial” to the prosecution of the ’731 patent. (Id., PageID.308; see also id., PageID.309) Similarly, to support its unwarranted burden and undue delay arguments, Louisville Ladder

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Werner Co. v. Louisville Ladder, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/werner-co-v-louisville-ladder-inc-kywd-2023.