Justia U.S. Federal Circuit Court of Appeals Opinion Summaries

Lumen’s 073 patent is directed to facilitating multilateral decision-making by matching parties, using preference data from two classes of parties. FTB operates a search website with a comparison feature, “AssistMe,” that provides personalized product and service recommendations by asking the user questions about attributes of the desired product or service. Lumen alleged infringement. FTB repeatedly informed Lumen that FTB’s accused feature did not involve bilateral or multilateral preference matching. Before receiving any discovery, Lumen served preliminary infringement contentions, including a chart identifying the allegedly infringing features of AssistMe. The district court granted FTB judgment on the pleadings, holding that the patent’s claims are directed to an abstract idea and invalid for failure to claim patent-eligible subject matter under 35 U.S.C. 101. The court found claim construction unnecessary and awarded attorney fees. Finding the case exceptional under 35 U.S.C. 285, the court stated “basic” pre-suit investigation would have shown that AssistMe only used one party's preference data. The court explained factors that supported enhancing the lodestar amount, including “the need to deter the plaintiff’s predatory strategy, the plaintiff’s desire to extract a nuisance settlement, the plaintiff’s threats to make the litigation expensive, and the frivolous nature of the plaintiff’s claims.” The Federal Circuit affirmed the "exceptional" finding, but remanded for proper explanation of the calculation of fees. View "Lumen View Tech., LLC v. Findthebest.Com, Inc" on Justia Law

Landowners filed a class action suit challenging the federal Surface Transportation Board’s approval of King County using a Burlington Northern Railroad corridor as a public trail, pursuant the National Trails Systems Act Amendments of 1983, 16 U.S.C. 1247(d). The Claims Court approved a $110 million settlement agreement and an award to class counsel of approximately $35 million in attorney fees under the common fund doctrine. Two class members challenged the approval and award. The Federal Circuit vacated, noting that the government also challenged the approval, claiming that class counsel failed to disclose information necessary to allow class members to assess the fairness and reasonableness of the proposed settlement. The government had standing to raise its challenge under the Uniform Relocation Assistance and Real Property Acquisition Policies Act (URA), 42 U.S.C. 4654(c) and its arguments were not barred by waiver or estoppel.The Claims Court erred in approving a settlement agreement where class counsel withheld critical information not provided in the mailed notice to class members, but which had been produced and was readily available. Although a “common fund” exists in this case, the URA attorney fee provision provides for reasonable fees and preempts application of the common fund doctrine. View "Haggart v. United States" on Justia Law

Tesco sued NOV for infringement of patents that involve an apparatus and method for handling sections of pipe used for lining a well-bore. NOV filed an answer, counterclaims, a request for attorney’s fees, and motions to compel requesting information about documents to show what occurred during the six months before the on-sale bar date. Ultimately, based on non-production of an original brochure, the court sanctioned Tesco by reversing the burden of proof on validity, setting the burden at a preponderance of evidence. The jury concluded that NOV infringed the relevant claims, found certain of those claims to be not invalid, and found that the brochure was not enabling. During post-trial discovery on the brochure. NOV filed “post-trial summary judgment motions of invalidity” (35 U.S.C. 102(b) and 103) based on what it asserts was disclosed in the brochure. The court granted NOV’s motion for obviousness, relying on an obvious-to-try analysis, set a trial date for the exceptional case counterclaim, and, later, issued an order sua sponte dismissing the case with prejudice under its inherent authority, finding that certain testimony was “contrary to the representations Tesco made to the Court during trial,” stating that the attorneys’ conduct was “entirely out of character ... serious and has had significant and costly ramifications.” The parties, including the attorneys, later entered into a settlement resolving all outstanding issues, and signed releases. The attorneys contend that, despite the settlement, the harm to their reputation from the court’s opinion justified continued jurisdiction. The Federal Circuit dismissed, finding no remaining case or controversy. View "Tesco Corp. v. Nat'l Oilwell Varco, L.P." on Justia Law

SFA’s patents relate to a computer sales system that includes multiple subsystems or components; each component corresponds to a different phase of the sales process. The patents disclose “an event manager” that detects “events” and automatically implements operation. SFA sued online retailers, including Newegg, alleging infringement. After other accused infringers settled, the district court held Markman hearings and rejected Newegg’s proposed constructions that limited the asserted claims to systems that assist a salesperson, or are used by a salesperson. Newegg also argued that claims were invalid as indefinite, because the system claims contained method step limitations, making it unclear when infringement occurs. The parties jointly sought extension of the case schedule. The court denied the motion as premature and denied summary judgment that the claims were indefinite. The next day, SFA moved to dismiss with prejudice and covenanted not to sue Newegg on the patents at issue. The court found that Newegg was the prevailing party and granted costs, but denied its 35 U.S.C. 285 motion for attorneys’ fees citing the Supreme Court’s standard in Octane (2014), finding that, “[e]ven under the new, lower standard for an exceptional case designation, Newegg has provided no evidence that this case ‘stands out from others with respect to the substantive strength of [SFA’s] litigating position.’” The Federal Circuit affirmed. View "SFA Sys., LLC v. Newegg, Inc." on Justia Law

Gaymar ‘s patent is directed to a patient temperature control system, including a blanket that can conductively warm or cool the patient. In 2008, Gaymar sued CSZ, asserting that CSZ’s Blanketrol device infringed claims of the patent. The PTO granted CSZ’s inter partes reexamination request and issued a first Office Action rejecting all claims of the patent as anticipated or obvious over prior art cited in CSZ’s request. The district court denied Gaymar’s motion for a preliminary injunction and granted CSZ’s motion to stay the case pending the conclusion of the reexamination. The PTO reaffirmed its rejection of all claims of the patent. Gaymar filed an express abandonment of all claims in 2010, and the PTO concluded the reexamination, cancelling all of the claims. The district court lifted the stay. CSZ unsuccessfully sought attorney’s fees under 35 U.S.C. 285, alleging that Gaymar’s litigation position was frivolous and that Gaymar had engaged in litigation misconduct. Following the Supreme Court’s 2014, decision, Octane Fitness, CSZ unsuccessfully moved for reconsideration. The Federal Circuit affirmed a finding of a lack of objective baselessness, but reversed the exceptional case finding insofar as it was based on CSZ’s purported misconduct. View "Gaymar Indus., Inc. v. Cincinnati Sub-Zero Prods., Inc." on Justia Law

Oplus filed a patent infringement suit in Illinois that was transferred to California. Oplus moved the Judicial Panel on Multidistrict Litigation to transfer the case back and consolidate it with other cases. The Panel denied the motion. Ultimately, the district court granted summary judgment of noninfringement. Defendant sought attorneys’ and expert witness fees under 35 U.S.C. 285 and 28 U.S.C. 1927. The court made numerous findings regarding misconduct, found the case exceptional under section 285, and held that Oplus and its counsel were vexatious litigants. The court nonetheless denied the request, stating that “[a]though Oplus’s behavior has been inappropriate, unprofessional, and vexatious, an award of attorney fees must take the particular misconduct into account,” the “case has been fraught with delays and avoidance tactics to some degree on both sides,” and “[t]here is little reason to believe that significantly more attorney fees or expert fees have been incurred than would have been in the absence of Oplus’s vexatious behavior.” Concerning section 1927, the court stated that “there is no evidence suggesting that Oplus’s behavior stemmed from bad faith or a sufficient intent to harass,” although there was “ample evidence of Oplus’s litigation misconduct.” The Federal Circuit vacated, finding the denial an abuse of discretion. View "Oplus Techs., Ltd. v. Vizio, Inc." on Justia Law

Source manufactures water reservoirs in which drinking water can be stored inside backpacks for use during outdoor activities and is the assignee of the 276 patent, which focuses on a reservoir with a hermetic seal to prevent leakage and a wide opening for easier cleaning and filling. Attorney Yonay prosecuted the 276 patent application. Yonay and his partner signed the complaints in an infringement action against Hydrapak, which also manufactures a flexible hydration reservoir, the Reversible Reservoir. Hydrapak served a sanctions motion under Federal Rule of Civil Procedure 11, which allows the party against whom the sanctions will be sought 21 days to withdraw the offending claim. Source declined to withdraw its amended complaint. The district court granted Hydrapak summary judgment and sanctions, stating that there was “nothing complicated or technical” about the claim limitation “slot being narrower than the diameter of the rod,” and that none of the words of this limitation “requires definition or interpretation beyond its plain and ordinary meaning.” The court determined that in Hydrapak’s products the slot is larger than the diameter of the rod, even under Source’s proposed construction. After the Federal Circuit affirmed and denied Hydrapak sanctions for a frivolous appeal, the district court imposed a sanction of $200,054.00. The Federal Circuit affirmed.View "Source Vagabond Sys., Ltd. v. Hydrapak, Inc." on Justia Law

Sneed is the surviving spouse of Reginald, who served on active duty 1964-1968 and suffered service-connected disabilities, including post-traumatic stress syndrome, post-concussion syndrome, degeneration of the vertebrae, narrowing of the spinal column, tinnitus, a perforated tympanic membrane, and scarring of the upper extremities. In 2001, Reginald fell and suffered a spinal cord contusion, rendering him a quadriplegic. In 2003, he was living in a nursing home for paralyzed veterans. There was a fire and all of the residents died of smoke inhalation. Sneed sought dependency and indemnity compensation, 38 U.S.C. 1310, alleging that her husband’s service-connected disabilities were a cause of his death. The VA denied the claim. The Board affirmed. Sneed’s notice of appeal was due by August 3, 2011. Sneed retained attorney Eagle, communicated with Eagle’s office “for a year or longer” and stated that “Eagle knew that there was a deadline.” On August 2, 2011 Sneed received a letter stating that Eagle would not represent Sneed in her appeal. Failing to find new counsel, Sneed filed notice of appeal on September 1, 2011, with a letter explaining her late filing. The Veterans Court dismissed the appeal as untimely. The Federal Circuit vacated, holding that attorney abandonment can justify equitably tolling the deadline for filing an appeal. View "Sneed v. Shinseki" on Justia Law

Smith was disbarred by the Tenth Circuit in 1996, followed by reciprocal disbarments by the Fifth Circuit, the U.S. District of Colorado and Northern District of Texas, and the Colorado Supreme Court. In 2007, the Tenth Circuit granted reinstatement, provided that Smith met conditions. The conditions were satisfied, and Smith was reinstated. The other courts then readmitted him to their bars, except the Colorado Supreme Court. The United States District Court for the District of Colorado then reversed itself and denied reinstatement, because Smith remained disbarred by the Colorado Supreme Court. The Tenth Circuit affirmed. Smith filed suit in the Court of Federal Claims, seeking compensation and equitable relief, alleging violations substantive and procedural due process and of equal protection, and judicial takings of his private property right to practice law and make a living. The Claims Court dismissed, reasoning that absent a money-mandating statute providing for compensation for such government action, it had no jurisdiction and that because the revocation actions became final no later than 1999, suit under the Tucker Act was barred by the six-year limitations period, 28 U.S.C. 2501.. The Federal Circuit affirmed. View "Smith v. United States" on Justia Law

The two patents in suit relate to systems for minimizing the cost of placing long-distance telephone calls. Mediatrix manufactures and sells equipment that modifies existing telephone systems to convert them to voice-over-Internet-protocol systems. Over the course of infringement litigation, plaintiff (RTI) was ordered on four separate occasions to respond to a specific contention interrogatory propounded by Mediatrix: “Separately for each claim of the Patents-in-suit that [RTI] contends is infringed, state the basis for that contention, including without limitation, identification on an element-by-element basis of the component, structure, feature, functionality, method or process of each accused Mediatrix product that allegedly satisfies each element.” A magistrate determined that RTI never adequately responded to the interrogatory and that the failure to comply with the court’s orders was willful, and recommended dismissing the case and imposing monetary sanctions against RTI’s attorney, Hicks, and RTI in the amount of $86,965.81, to be split evenly between them. The district court adopted the recommendation. Hicks appealed the monetary sanction. RTI did not appeal. The Federal Circuit affirmed. View "Rates Tech., Inc. v. Mediatrix Telecom, Inc." on Justia Law