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

Plaintiff, an intelligence analyst with the FBI, was required to complete the FBI Basic Field Training Course (BFTC), which included in-person training sessions and various tasks and assessments, some of which were scheduled outside working hours. Plaintiff filed a complaint in the Court of Federal Claims, alleging that they were not compensated for all overtime hours worked during the BFTC.The United States Court of Federal Claims denied the government's motion for summary judgment, holding that the OPM regulation 5 C.F.R. § 551.423(a)(3), which bars overtime compensation for entry-level training, was invalid. The court reasoned that the regulation was inconsistent with the Department of Labor (DOL) regulations and that the government failed to justify the categorical rule against overtime compensation for entry-level training. The court certified the validity of the regulation for interlocutory appeal.The United States Court of Appeals for the Federal Circuit reviewed the case and vacated the lower court's decision. The appellate court held that the OPM regulation 5 C.F.R. § 551.423(a)(3) is valid. The court reasoned that the differences between OPM and DOL regulations are justified by the need to accommodate the differences between federal and non-federal employment, particularly considering the Government Employees Training Act (GETA), which generally prohibits overtime pay for training for federal employees. The court concluded that OPM's regulation is a legitimate policy choice consistent with both the FLSA and GETA. The case was remanded to determine whether the OPM regulation is consistent with the FLSA. View "DOE NO. 1 v. US " on Justia Law

FlightSafety International Inc. (FlightSafety) supplied the U.S. Air Force with commercial technical data under subcontracts awarded by CymSTAR, LLC. The data included restrictive markings, which the Air Force challenged. The Armed Services Board of Contract Appeals (Board) determined that the restrictive markings were improper under applicable statutes and regulations, leading FlightSafety to appeal.The Board found that the restrictive markings placed by FlightSafety on the technical data were improper. The Board concluded that the government had unrestricted rights to the data, as it was necessary for operation, maintenance, installation, or training (OMIT data). The Board also determined that the government could challenge the restrictive markings under the Validation Clause, which was not limited to challenges based on the funding source of the data.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Board's decision. The court held that the government had unrestricted rights to the OMIT data and that the restrictive markings placed by FlightSafety contradicted these rights. The court also held that the government could challenge the restrictive markings under the Validation Clause, which was not limited to challenges based on the funding source of the data. The court found that the restrictive markings, including the terms "proprietary" and "confidential," as well as the requirement for written authorization, were impermissible as they contradicted the government's unrestricted rights. The court also found that the copyright notice in the markings was misleading and contradicted the government's rights. View "FLIGHTSAFETY INTERNATIONAL INC. v. AIR FORCE " on Justia Law

Appellants, including GL B Energy Corporation and others, were accused of transshipping xanthan gum from China through India to evade antidumping duties imposed by the U.S. Department of Commerce. Customs and Border Protection (CBP) initiated an investigation based on allegations from CP Kelco U.S., a domestic producer, and found substantial evidence that the xanthan gum was of Chinese origin and subject to antidumping duties. Customs applied adverse inferences against the manufacturers for not cooperating with information requests, concluding that the merchandise was transshipped to evade duties.The United States Court of International Trade (CIT) reviewed the case and affirmed Customs' determinations. The CIT dismissed claims related to finally liquidated entries for lack of subject matter jurisdiction, as the importers failed to timely appeal the denial of their protests. The CIT also denied the remaining motions for judgment on the agency record, finding that Customs' determinations were supported by substantial evidence and were not arbitrary or capricious.The United States Court of Appeals for the Federal Circuit reviewed the case. The court agreed with the CIT that Customs' evasion determinations were supported by substantial evidence and were in accordance with the law. The court also found that the CIT had jurisdiction to review the evasion determinations, even for finally liquidated entries, based on the precedent set in Royal Brush Mfg., Inc. v. United States. However, the court affirmed the CIT's decision, noting that the CIT would have denied the motions for judgment on the agency record for the same reasons stated for the other entries. The court concluded that Customs' evasion determinations were lawful and supported by substantial evidence. View "ALL ONE GOD FAITH, INC. v. US " on Justia Law

Mark L. Sadler, a former employee of the United States Army, was suspended and then removed from his position for insubordination. Sadler claimed that these actions were retaliatory under the Whistleblower Protection Act and sought corrective action from the Merit Systems Protection Board (Board). He also requested sanctions against the government for the destruction of evidence. The Board denied both his motion for sanctions and his request for corrective action.The Merit Systems Protection Board initially dismissed Sadler’s first complaint, finding it did not sufficiently allege protected activity. For his second complaint, the Board acknowledged that Sadler engaged in protected whistleblower activity but concluded that the Army had shown by clear and convincing evidence that it would have taken the same actions regardless of the protected activity. The Board also denied Sadler’s motion for sanctions, finding that the destruction of evidence was part of the Army’s ordinary procedures and did not warrant sanctions.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Board’s decision. The court agreed that Sadler’s first complaint did not allege protected activity and that the Army had provided clear and convincing evidence that it would have taken the same actions absent the whistleblowing. The court also upheld the Board’s decision on the sanctions issue, agreeing that the destruction of evidence was part of routine procedures and did not meet the intent standard required for sanctions under Rule 37(e) of the Federal Rules of Civil Procedure. View "SADLER v. ARMY " on Justia Law

US Synthetic Corp. (USS) filed a complaint with the United States International Trade Commission (Commission) alleging that several intervenors violated 19 U.S.C. § 1337 by importing and selling products that infringe five of USS’s patents. The focus of this appeal is U.S. Patent No. 10,508,502 (’502 patent), which claims a polycrystalline diamond compact (PDC) with specific structural and magnetic properties.The Commission instituted an investigation, and the administrative law judge (ALJ) determined that the asserted claims of the ’502 patent were infringed and not invalid under 35 U.S.C. §§ 102, 103, or 112. However, the ALJ found the claims patent ineligible under 35 U.S.C. § 101, as they were directed to an abstract idea. The Commission reviewed and affirmed the ALJ’s determination, concluding that the claims were directed to the abstract idea of achieving desired magnetic properties, which were seen as side effects of the manufacturing process.The United States Court of Appeals for the Federal Circuit reviewed the case. The court concluded that the asserted claims of the ’502 patent are not directed to an abstract idea but to a specific, non-abstract composition of matter defined by its constituent elements, dimensional information, and quantified material properties. The court found that the magnetic properties are integrally related to the structure of the PDC and are not merely side effects. Therefore, the claims are not directed to an abstract idea under Alice step one, and the court did not reach Alice step two.The court also addressed the alternative argument that the claims were not enabled. The court found no error in the Commission’s conclusion that the claims were enabled, as the respondents failed to prove a lack of enablement by clear and convincing evidence. The court reversed the Commission’s conclusion on patent ineligibility, affirmed the enablement conclusion, and remanded the case. View "US SYNTHETIC CORP. v. ITC " on Justia Law

Pirelli Tyre Co., Ltd. (Pirelli China), a foreign producer and exporter of certain tires, sought to establish independence from the Chinese government to obtain a separate antidumping duty rate. The United States Department of Commerce conducted an administrative review of merchandise covered by a 2015 antidumping-duty order for tires from China, covering entries between August 1, 2017, and July 31, 2018. Commerce applied a rebuttable presumption that all exporters within China are subject to government control, assigning a PRC-wide antidumping-duty rate unless the exporter demonstrates sufficient independence.The United States Court of International Trade (Trade Court) upheld Commerce’s determination that Pirelli China had not demonstrated its independence from government control. Commerce found that Pirelli China did not show autonomy from the Chinese government in selecting its management, a key criterion for obtaining a separate rate. Pirelli China’s arguments based on Italian law were rejected because the relevant provisions were not included in the record.The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the Trade Court’s decision. The court held that Commerce’s interpretation of the rebuttable presumption and its requirement for Pirelli China to demonstrate autonomy from government control were reasonable. The court also found that Commerce’s determination was supported by substantial evidence, including the indirect ownership and control by state-owned enterprises and the shared management between Pirelli entities and Chinese government-controlled entities. The court concluded that Commerce acted within its discretion in rejecting Pirelli China’s unsupported interpretations of Italian law and upheld the assignment of the PRC-wide antidumping-duty rate to Pirelli China. View "PIRELLI TYRE CO., LTD. v. US " on Justia Law

In 1957, Congress enacted the Price-Anderson Act (PAA) to amend the Atomic Energy Act of 1954, providing indemnity for contractors and others involved in nuclear activities. The PAA mandated that the government indemnify contractors and other "persons indemnified" for public liability arising from nuclear incidents. In 1962, the Atomic Energy Commission (AEC) entered into an indemnity agreement with Mallinckrodt Chemical Works, which processed uranium for the government. Cotter Corporation later purchased radioactive materials from Mallinckrodt and was sued in 2012 by plaintiffs alleging harm from these materials.The United States Court of Federal Claims dismissed Cotter's claim for indemnification under the PAA and the indemnity agreement, ruling that Cotter was not entitled to indemnification because its activities did not arise out of or in connection with the contractual activities of Mallinckrodt. The court also dismissed Cotter's contract claim, concluding that Cotter lacked standing as a third-party beneficiary and failed to state a claim for breach of contract.The United States Court of Appeals for the Federal Circuit reviewed the case and reversed the Claims Court's decision. The Federal Circuit held that Cotter's liability for the nuclear incident plausibly arose out of or in connection with the contractual activities of Mallinckrodt, as the materials causing the incident were produced under the contract. The court also found that Cotter sufficiently alleged it was an intended third-party beneficiary of the indemnity agreement and that the government breached the contract by not indemnifying Cotter. The case was remanded for further proceedings. View "COTTER CORP., N.S.L. v. US " on Justia Law

Kroy IP Holdings, LLC sued Groupon, Inc. in the United States District Court for the District of Delaware, alleging patent infringement of U.S. Patent No. 6,061,660, which relates to providing incentive programs over a computer network. Groupon moved to dismiss the complaint, arguing that Kroy was collaterally estopped from alleging infringement based on two prior inter partes review (IPR) decisions by the Patent Trial and Appeal Board (PTAB) that found other claims of the same patent unpatentable.The district court granted Groupon’s motion to dismiss, determining that the PTAB’s final judgments on the unpatentability of certain claims had preclusive effect on the district court action. The court concluded that collateral estoppel could apply to patent claims not previously adjudicated if the differences between the unadjudicated and adjudicated claims did not materially alter the question of invalidity. The district court found that the newly asserted claims were immaterially different from the previously adjudicated claims and thus dismissed Kroy’s complaint with prejudice.The United States Court of Appeals for the Federal Circuit reviewed the case and reversed the district court’s decision. The Federal Circuit held that collateral estoppel does not apply when the second action involves a different legal standard, such as a different burden of proof. The court noted that in IPR proceedings, the burden of proof is a preponderance of the evidence, whereas in district court, the burden is clear and convincing evidence. Therefore, the PTAB’s findings under a lower burden of proof could not preclude Kroy from asserting the newly asserted claims in district court. The Federal Circuit reversed the district court’s dismissal and remanded the case for further proceedings. View "KROY IP HOLDINGS, LLC v. GROUPON, INC. " on Justia Law

Wuhan Healthgen Biotechnology Corp. (Healthgen) appealed a final determination from the International Trade Commission (Commission) which found that Healthgen’s clinical grade albumin products infringed claims of U.S. Patent No. 10,618,951, owned by Ventria Bioscience Inc. (Ventria). The patent pertains to cell culture media containing recombinant human serum albumin produced in a genetically modified plant. Healthgen imports clinical and medium grade recombinant human serum albumin (rHSA) products, and Ventria alleged that these imports violated Section 337 of the Tariff Act of 1930 due to patent infringement.The Administrative Law Judge (ALJ) initially found that Healthgen’s clinical and medium grade rHSA products infringed the patent and that Ventria satisfied the domestic industry requirement based on six rHSA products. The Commission affirmed the ALJ’s finding of infringement for the clinical grade products but not for the medium grade products. The Commission also affirmed that Ventria satisfied the domestic industry requirement based on one product, Optibumin, without further analysis of the other five products.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that substantial evidence supported the Commission’s findings. The court affirmed the Commission’s determination that Healthgen’s clinical grade products infringed the patent based on SEC-HPLC data showing less than 2% aggregated albumin. The court also upheld the Commission’s finding that Ventria satisfied the domestic industry requirement, noting that all investments and activities related to Optibumin occurred within the United States and that the investment-to-revenue ratio indicated significant investment despite low revenue.The Federal Circuit affirmed the Commission’s decision, concluding that Healthgen’s clinical grade products infringed the patent and that Ventria met the domestic industry requirement. View "WUHAN HEALTHGEN BIOTECHNOLOGY CORP. v. ITC " on Justia Law

Trudell Medical International Inc. (Trudell) owns U.S. Patent No. 9,808,588, which relates to devices for performing oscillatory positive expiratory pressure (OPEP) therapy. Trudell sued D R Burton Healthcare, LLC (D R Burton) for patent infringement. D R Burton sells OPEP devices, including the vPEP®, vPEP® HC, iPEP®, PocketPEP®, and PocketPEP® Advantage products. Trudell alleged that these products infringed certain claims of the ’588 patent.The United States District Court for the Eastern District of North Carolina allowed D R Burton to present infringement testimony by Dr. John Collins at trial. After a three-day trial, the jury found that the asserted claims of the ’588 patent were valid but not infringed. Trudell filed a renewed motion for judgment as a matter of law (JMOL) on infringement or, alternatively, for a new trial. The district court denied this motion.The United States Court of Appeals for the Federal Circuit reviewed the case. The court held that the district court abused its discretion by allowing Dr. Collins to testify on noninfringement because his testimony was untimely and did not comply with Federal Rule of Civil Procedure 26. Additionally, the court found Dr. Collins' testimony unreliable under Federal Rule of Evidence 702. The Federal Circuit vacated the jury’s finding of noninfringement and remanded for a new trial, excluding Dr. Collins’ noninfringement testimony. The court also affirmed the district court’s denial of Trudell’s motion for JMOL of infringement, as the jury could have reasonably found noninfringement based on the evidence presented.The Federal Circuit ordered that the case be reassigned to a different district court judge on remand to preserve the appearance of justice and fairness, given the trial judge’s statements indicating a predisposition to quickly resolve the case. View "TRUDELL MEDICAL INTERNATIONAL INC. v. D R BURTON HEALTHCARE, LLC " on Justia Law