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

GMI is the parent corporation of several partners of General Mills, an LLC that is treated as a partnership for tax purposes (the Partnership). GMI alleges that after certain partnership-level audits of the Partnership’s returns for the 2002–2006 tax years were settled with the IRS, the IRS erroneously collected $5,958,695 in “large corporate underpayments” (LCU) interest (I.R.C. 6621(c)), by selecting incorrect “applicable dates” to start interest accrual. GMI paid the interest and filed unsuccessful administrative refund claims, then sued the government. The Claims Court dismissed for lack of subject matter jurisdiction, concluding that GMI failed to file its claims within the six-month limitations period, I.R.C. 6230(c). GMI argued that the general two-year tax refund limitations period (I.R.C. 6511(a)) applied. Section 6230(c) provides that “[a] partner may file a claim for refund on the grounds that . . . the [IRS] erroneously computed any computational adjustment necessary . . . to apply to the partner a settlement” and that any such claim “shall be filed within 6 months after the day on which the [IRS] mails the notice of computational adjustment to the partner.”The Federal Circuit affirmed. The essence of GMI’s challenge is to the IRS’s computation of the change in its tax liability resulting from the Partnership’s settlement of partnership items; interest was “clearly contemplated” as part of the Partnership settlement agreements. GMI received adequate notice but filed its refund claims well outside the six-month period, View "General Mills, Inc. v. United States" on Justia Law

GIP purchased property from a steel mill’s bankruptcy estate, omitting the “Eastern Excluded Property” (EEP). GIP purchased some personal property located on the EEP, which contains two piles comprising slag (a steel manufacturing byproduct), kish (a byproduct of a blast furnace operation), and scrap. Each pile occupied more than 10 acres and was more than 80 feet high. GIP's "Itemization of Excluded Item from Sale” referred to: “All by-products of production other than kish and 420,000 cubic yards of slag” on the EEP “with a reasonable period of time to remove such items.” The EPA began investigating contaminants leaching from the piles. While GIP was negotiating for the separation of recoverable metals, the EPA decided to reduce the size of the piles. In 2009-2013, EPA contractors recovered and sold 245,890 tons of material and recovered and used 92,500 cubic yards of slag onsite for environmental remediation; they processed approximately 50% of the piles, spending about $14.5 million, about a million more than income from sales. The EPA compacted the materials to minimize leachate, leaving further remediation to state environmental authorities. GIP did not attempt its own recovery operation during the EPA remediation.GIP sued, alleging “takings” of the slag, kish, and scrap. The trial court awarded GIP $755,494 for the slag but awarded zero damages for the kish and scrap. The Federal Circuit vacated in part. GIP had no claim to any particular subset of slag. The trial court erred in finding that the EPA somehow prevented GIP from recovering its full allotment of slag; GIP cannot establish a cognizable property interest in the slag that was recovered. The court affirmed in part. GIP’s unreliable calculations left the trial court without competent evidence relating to a critical component of the damages calculation with respect to the kish and scrap. View "Gadsden Industrial Park, LLC v. United States" on Justia Law

Truckai and his NovaCept team developed NovaSure, which was FDA-approved to detect perforations in the uterus. NovaCept incorporates the 183 and 348 patents, which list Truckai as an inventor. Truckai assigned to NovaCept his interests in the applications from which those patents claim priority and all continuation applications. Hologic is the current assignee of the patents and markets NovaSure. Truckai left NovaCept and founded Minerva, which developed EAS; EAS received FDA approval for the same indication as NovaSure. Hologic sued Minerva for infringement. In addition to asserting defenses of lack of enablement and failure to provide an adequate written description, Minerva sought inter partes review (IPR).The Patent Board instituted IPR of the 183 patent but denied IPR of the 348 patent and found the 183 claims unpatentable as obvious. Hologic appealed to the Federal Circuit. The district court declined to dismiss the infringement claim as moot and granted Hologic summary judgment that the doctrine of assignor estoppel bars Minerva from challenging the patents' validity, of no invalidity, and of infringement. A jury awarded damages.The Federal Circuit affirmed the Board’s decision that the 183 patent claims are invalid. The district court determined that the decision did not affect the verdict.The Federal Circuit affirmed that assignor estoppel bars the assignor from asserting the invalidity of the 348 patent in district court. Assignor estoppel does not preclude Minerva from relying on the Board's decision to argue that the 183 patent claims are void ab initio, justifying the denial of a permanent injunction, enhanced damages, and ongoing royalties. View "Hologic, Inc. v. Minerva Surgical, Inc." on Justia Law

Dragon sued 10 defendants, alleging patent infringement. Based on petitions by DISH and SXM (collectively, “DISH”), the Board instituted inter partes review (IPR) of the patent. The district court stayed proceedings as to DISH but proceeded as to the other defendants. After the court issued a claim construction order, Dragon, DISH, and the other defendants stipulated to noninfringement as to the accused products. The court entered judgment in favor of all defendants. In the parallel IPR, the Board issued a final decision holding unpatentable all asserted claims.DISH sought attorneys’ fees under 35 U.S.C. 285 and 28 U.S.C. 1927. Before the motions were resolved, Dragon appealed both the judgment of noninfringement and the Board’s decision. The Federal Circuit affirmed the Board’s decision and dismissed the district court appeal as moot. On remand, the district court vacated the judgment of noninfringement as moot but denied DISH’s motions for attorneys’ fees, holding that “success in a different forum is not a basis for attorneys’ fees” in the district court. The Federal Circuit vacated. The judgment of noninfringement was vacated only because DISH successfully invalidated the claims in parallel IPR proceedings, rendering moot Dragon’s infringement action. DISH’s success in obtaining a judgment of noninfringement, although later vacated because of its success in IPR, supports holding that they are prevailing parties. View "Dragon Intellectual Property LLC v. DISH Network LLC" on Justia Law

Biogen holds the New Drug Application for the active ingredient dimethyl fumarate (DMF), which was FDA-approved in 2013 as Tecfidera®, a twice-daily pill for the treatment of relapsing forms of multiple sclerosis at a daily dose of 480 mg. The 001 patent, “Utilization of Dialkylfumarates,” discloses that dialkyl fumarates may have therapeutic uses “in transplantation medicine and for the therapy of autoimmune diseases,” including multiple sclerosis. After the five-year data exclusivity for Tecfidera® expired, Banner submitted an application under 21 U.S.C. 355(b)(2) to market a twice-daily monomethyl fumarate (MMF) pill at a daily dose of 380 mg. Biogen alleged infringement of the 001 patent. Banner argued that section 156(b)(2) limits the scope of the patent’s extension to methods of using the approved product as defined in 156(f)—DMF, its salts, or its esters—and that MMF is none of those things. Biogen responded that section 156(b)(2) limits extension only to uses of any product within the original scope of the claims. The patent will expire in June 2020.The Federal Circuit affirmed the district court’s finding of non-infringement. The monomethyl ester, covered by claim 1, is not covered by the extension. The scope of a patent term extension under 35 U.S.C. 156 only includes the active ingredient of an approved product, or an ester or salt of that active ingredient; the product at issue does not fall within those categories. View "Biogen International GmbH v. Banner Life Sciences, LLC" on Justia Law

Attorney Ravin represented veteran Cook on a claim for past-due disability benefits. Their agreement provided for a contingent fee and contemplated that VA would withhold the fee from any past-due benefits awarded and pay that amount directly to Ravin under 38 U.S.C. 5904(d)(3). Within days of executing that agreement, Ravin sent a copy to the Board of Veterans’ Appeals, where it was date-stamped on December 11, 2009. No copy of the agreement was submitted to the Regional Office (RO) “within 30 days of the date of execution,” as required by 38 C.F.R. 14.636(h)(4). The RO awarded Cook past-due benefits in April 2010. On April 13, 2010, the RO’s Attorney Fee Coordinator searched for any attorney fee agreement and determined that “no attorney fee decision is required” and “[a]ll retroactive benefits may be paid directly to the veteran.” The RO paid the past-due benefits to Cook. On April 27, 2010, Ravin mailed a copy of Cook’s direct-pay fee agreement to the RO. The RO informed Ravin that it had not withheld his attorney’s fees because the agreement was “not timely filed.”The Veterans Court and Federal Circuit affirmed the Board’s denial of Ravin’s claim. Section 5904(d)(3) does not mandate withholding and direct payment; 38 C.F.R. 14.636(h)(4)'s submission requirement is valid. Ravin’s fees have not been forfeited; he may use all available remedies to obtain them from Cook, per their agreement. View "Ravin v. Wilkie" on Justia Law

Under the Arizona-Florida Land Exchange Act (AFLEA), 102 Stat. 4571, 72 acres of the Phoenix Indian School Property were conveyed to Collier in exchange for Collier’s Florida lands plus $34.9 million. The Arizona InterTribal Trust Fund (AITF) was established for the benefit of ITCA-member Arizona tribes for “the cash amount required to be paid . . . by Collier upon closing.” In 1991, over ITCA's objections, the Secretary of the Interior agreed to allow Collier to make annual payments rather than full payment at closing. For several years, the Government released its liens on the Phoenix property. In 2013, Collier stated its intent to “no longer make payments” because the value of the remaining 15-acre Phoenix Property had decreased. Under a 2017 settlement agreement, Collier paid $16 million to the Government, which then sold the 15-acre Property for $18.5 million. ITCA sued, alleging that the Government breached its AFLEA fiduciary duties.The Claims Court dismissed in part. The Federal Circuit reversed in part. The Claims Court erred in dismissing the failure-to-maintain-sufficient-security portion of Claim I but properly dismissed the portion of that claim regarding the Government’s alleged failure to ensure adequate security when it negotiated the TFPA. The court properly dismissed Claim II, which alleged that the AFLEA “required the [Government] to collect from Collier all Trust Fund Payments required under the [AFLEA], and that the [Government’s] failure to collect all of the payments is a breach of trust.” View "Inter-tribal Council of Arizona v. United States" on Justia Law

Higgins began working at the Memphis VA Medical Center (VAMC) in 2007. Throughout his employment, Higgins reported unlawful activity ranging from misuse of agency letterhead to improper disposal of biohazardous material. Higgins had a history of conflict with his supervisors and coworkers. In 2016, a psychologist diagnosed Higgins as meeting the criteria for PTSD, chronic, concluding that “Higgins cannot work, even with restrictions, and this is permanent.” In March 2017, the VAMC suspended Higgins for using profanity with his supervisor. It was “the third incident of a similar type.” Because of his whistleblower status and PTSD, Higgins was offered a suspension without loss of pay.In June 2017, the VAMC removed Higgins based on charges of disruptive behavior and the use of profane language during three incidents. The VAMC’s Chief of Police considered Higgins’s statements a valid threat and recommended that the Director wear a bulletproof vest and receive a police escort to and from his car. The Director successfully filed a workers’ compensation claim for PTSD. An Administrative Judge determined that removal was “within the range of reasonableness” and promoted “the efficiency of the service.” Higgins had established a prima facie whistleblower retaliation defense but the agency would have removed Higgins even absent his protected whistleblowing activity. The Federal Circuit affirmed, rejecting arguments that the Board improperly discounted evidence of Higgins’s PTSD and that the AJ abused his discretion by excluding testimony relevant to institutional motive to retaliate. View "Higgins v. Department of Veterans Affairs" on Justia Law

CardioNet’s 207 patent, titled “Cardiac Monitoring,” claims priority to an application filed in 2004 and describes cardiac monitoring systems and techniques for detecting and distinguishing atrial fibrillation and atrial flutter from other various forms of cardiac arrythmia. The district court dismissed CardioNet’s patent infringement complaint against InfoBionic, finding that the asserted claims of the patent are ineligible under 35 U.S.C. 101.The Federal Circuit reversed, applying the Supreme Court’s two-step “Alice” framework and finding that the asserted claims of the 207 patent are directed to a patent-eligible improvement to cardiac monitoring technology and are not directed to an abstract idea. Nothing in the record suggests that the claims merely computerize pre-existing techniques for diagnosing atrial fibrillation and atrial flutter. View "CardioNet, LLC v. InfoBionic, Inc." on Justia Law

The Spigen Design Patents each claim a case for a cellular phone. In an infringement case, the district court held as a matter of law that the Spigen Design Patents were obvious over the 218 and 209 patents and granted summary judgment of invalidity in favor of Ultraproof. Subsequently, Ultraproof moved for attorneys’ fees under 35 U.S.C. 285. The district court denied the motion. The Federal Circuit reversed with respect to invalidity; the district court improperly resolved a genuine dispute of material fact. The district court found that despite “slight differences,” the 218 patent undisputedly was “basically the same” as the Spigen Design Patents, and, thus, a proper primary reference. That determination was error because, based on the competing evidence before the district court, a reasonable fact-finder could find otherwise. View "Spigen Korea Co., Ltd. v. Ultraproof, Inc." on Justia Law