Boydstun Metal Works, Inc. v. Cottrell, Inc.

Decision Date07 September 2007
Docket NumberNo. 06-CV-500-PK.,06-CV-500-PK.
PartiesBOYDSTUN METAL WORKS, INC., an Oregon corporation, Plaintiff, v. COTTRELL, INC., a Georgia corporation, Defendant.
CourtU.S. District Court — District of Oregon
ORDER

BROWN, Judge.

Magistrate Judge Paul Papak issued Findings and Recommendation (# 113) on April 13, 2007, in which he recommended the Court deny the Motion for Summary Judgment (# 71) of Defendant Cottrell, Inc., as moot with respect to Claims 18-26 and 28 of the 7,025,547 Patent ('547 Patent); deny Cottrell's Motion for Summary Judgment (# 71) as to Claims 27 and 29 of the '547 Patent; and grant Plaintiff Boydstun Metal Works, Inc.'s Cross-Motion for Summary Judgment (# 81) as to Cottrell's "on sale bar" defense in which Cottrell asserts it offered the claimed invention for sale more than a year prior to the application that matured into the '547 Patent.

Cottrell filed timely Objections to the Findings and Recommendation only as to the recommendation that the Court grant Boydstun's Cross-Motion for Summary Judgment. On July 9, 2007, the Court held a hearing on Defendant's Objections and allowed the parties to submit additional authorities to support their positions. The matter is now before this Court pursuant to 28 U.S.C. § 638(b)(1) and Fed. R.Civ.P. 72(b).

When any party objects to any portion of the Magistrate Judge's Findings and Recommendation, the district court must make a de novo determination of that portion of the Magistrate Judge's report. 28 U.S.C. § 636(b)(1). See also United States v. Bernhardt, 840 F.2d 1441, 1444 (9th Cir.1988); McDonnell Douglas Corp. v. Commodore Business Mach., Inc., 656 F.2d 1309, 1313 (9th Cir.1981), cert. denied, 455 U.S. 920, 102 S.Ct. 1277, 71 L.Ed.2d 461 (1982).

In its Objections, Cottrell contends it introduced sufficient evidence to establish the claimed invention was ready for patenting by March 29, 2003, and to corroborate that it offered the claimed invention for sale more than a year before March 29, 2004, the date of Plaintiff's application .that matured into the '547 Patent. Cottrell, as the accused infringer challenging the validity of the patent under the "on sale bar" defense, bears the burden to establish by "clear and convincing evidence that there was a definite sale or offer to sell more than one year before the application for the subject patent, and that the subject matter of the sale or offer to sell fully anticipated the claimed invention." See Elan Corp., PLC v. Andrx Pharm., Inc., 366 F.3d 1336, 1340 (Fed.Cir.2004)(quotation omitted).

This Court has carefully considered Cottrell's Objections and the additional authorities provided by Cottrell. The Court agrees with the Magistrate Judge's finding that the March 6, 2003, letter from Defendant Cottrell to Jack Cooper Transport did not constitute an offer for sale. The Court also considered the affidavits offered by Cottrell in support of its Motion for Summary Judgment and concludes those affidavits standing alone and/or in conjunction with the March 6, 2003, letter are not sufficient to establish by clear and convincing evidence that the device at issue was offered for sale before March 29, 2003. In addition, the Court agrees with the Magistrate Judge's finding that Cottrell has not established by clear and convincing evidence that its alleged offer "fully anticipated the claimed invention"; i.e., that the device was ready for patenting before March 29, 2003.

Accordingly, the Court concludes Cottrell's Objections and additional authorities do not provide a basis to modify the Findings and Recommendation as to Boydstun's Cross-Motion for Summary Judgment. This Court also has reviewed the pertinent portions of the record de novo and does not find any error in the Magistrate Judge's Findings and Recommendation.

Cottrell did not object to the Magistrate Judge's Findings and Recommendation pertaining to Cottrell's Motion for Summary Judgment as to Claims 18-26 and 28 of the '547 Patent or as to Claims 27 and 29 of the '547 Patent. When there are not any objections to the Magistrate Judge's Findings and Recommendation, this Court is relieved of its obligation to review the record de novo. See Britt v. Simi Valley Unified School Dist., 708 F.2d 452, 454 (9th Cir.1983). See also Lorin Corp. v. Goto & Co., 700 F.2d 1202, 1206 (8th Cir.1983). The Court, therefore, has reviewed the legal principles related to this portion of the Findings and Recommendation de novo and does not find any error.

CONCLUSION

The Court ADOPTS Magistrate Judge Papak's Findings and Recommendation (# 113). Accordingly, the Court:

(1) DENIES Cottrell's Motion for Summary Judgment (# 71) as moot with respect to Claims 18-26 and 28 of the '547 Patent;

(2) DENIES Cottrell's Motion for Summary Judgment (# 71) as to Claims 27 and 29 of the '547 Patent; and

(3) GRANTS Boydstun's Cross-Motion for Summary Judgment (# 81) as to Cottrell's "on sale bar" defense that it offered the claimed invention for sale more than a year prior to the application that matured into the '547 Patent.

IT IS SO ORDERED.

FINDINGS AND RECOMMENDATION

PAPAK, United States Magistrate Judge.

Plaintiff Boydstun Metal Works, Inc. ("Boydstun") filed this action accusing defendant Cottrell, Inc. ("Cottrell") of patent infringement under 35 U.S.C. § 271. Before this court is Cottrell's motion for summary judgment and Boydstun's cross motion for summary judgment. This court has jurisdiction pursuant to 28 U.S.C. § 1331. For the reasons set forth below, this court recommends denying Cottrell's motion for summary judgment (# 71) and granting Boydstun's cross motion for summary judgment on Cottrell's on sale bar affirmative defense (# 81).

As a procedural matter, this court notes that based on the agreement of all parties at the managed alongside CV 06-1406-BR.

LEGAL STANDARD

A party is entitled to summary judgment if "the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, if any, show there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law" Fed.R.Civ.P. 56(c); Nike, Inc. v. Wolverine World Wide, Inc., 43 F.3d 644, 646 (Fed.Cir.1994) ("summary judgment is appropriate in a patent case, as in other cases, when there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.").

The moving party carries the initial burden of proof. The party meets this burden by identifying portions of the record on file which demonstrate the absence of any genuine issue of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 322-24, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once the initial burden is satisfied, the burden shifts to the non-moving party to demonstrate through the production of probative evidence that there remains an issue of fact to be tried. Id.

The court must view the evidence in the light most favorable to the non-moving party. Bell v. Cameron Meadows Land Co., 669 F.2d 1278, 1280 (9th Cir.1982). All reasonable doubt as to the existence of a genuine issue of fact should be resolved against the moving party. Hector v. Wiens, 533 F.2d 429, 432 (9th Cir.1976). The inferences drawn from the underlying facts must be viewed in the light most favorable to the party opposing the motion. Valandingham v. Bojorquez, 866 F.2d 1135, 1137 (9th Cir.1989). Where different ultimate inferences may be drawn, summary judgment is inappropriate. Sankovich, v. Ins. Co. of N. Am., 638 F.2d 136, 140 (9th Cir.1981).

To establish the existence of a genuine issue of material fact, the non-moving party must make an adequate showing as to each element of the claim on which the non-moving party will bear the burden of proof at trial. See Celotex, 477 U.S. at 322-23, 106 S.Ct. 2548; see also Taylor v. List, 880 F.2d 1040, 1045 (9th Cir.1989); Harper v. Wallingford, 877 F.2d 728, 731 (9th Cir.1989). The non-moving party may not rest on conclusory allegations or mere assertions, see Taylor, 880 F.2d at 1045; Leer v. Murphy, 844 F.2d 628, 631 (9th Cir.1988), but must come forward with significant probative evidence, see Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-50, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Sanchez v. Vild, 891 F.2d 240, 242 (9th Cir.1989). The evidence set forth by the nonmoving party must be sufficient, taking the record as a whole, to allow a rational jury to find for the non-moving party. See Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Taylor, 880 F.2d at 1045.

When considering a motion for summary judgment, the district court's role is not to weigh the evidence, but merely to determine whether there is a genuine issue for trial. Anderson, 477 U.S. at 249, 106 S.Ct. 2505; Freeman v. Arpaio, 125 F.3d 732, 735 (9th Cir.1997). On cross-motions for summary judgment, the court must consider each motion separately to determine whether either party has met its burden with the facts construed in the light most favorable to the non-moving party. Fed. R.Civ.P. 56; Fair Housing Council of Riverside County, Inc. v. Riverside Two, 249 F.3d 1132, 1136 (9th Cir.2001). Summary judgment, of course, may not be granted where the court finds unresolved issues of material fact, even in situations where the cross motions allege that no disputed facts exist.

FACTUAL BACKGROUND

Cottrell and Boydstun design and manufacture car-hauling equipment, including vehicle transporters also known as car haulers. Most of these haulers feature both a headramp that attaches to a truck cab, and a trailer that Attaches to the head ramp via a fifth wheel. Car haulers store cars on two levels: an upper...

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