In Re Sundstrand Data Control, Inc., 317.

• Decision Date: 27 January 1978
• Docket Number: No. 317.,317.
• Citation: 443 F. Supp. 1019
• Parties: In re SUNDSTRAND DATA CONTROL, INC. PATENT LITIGATION.
• Court: Judicial Panel on Multidistrict Litigation

443 F. Supp. 1019

In re SUNDSTRAND DATA CONTROL, INC. PATENT LITIGATION.

No. 317.

Judicial Panel on Multidistrict Litigation.

January 27, 1978.

Before JOHN MINOR WISDOM, Chairman, and EDWARD WEINFELD, EDWIN A. ROBSON, JOSEPH S. LORD, III^*, STANLEY A. WEIGEL, ANDREW A. CAFFREY and ROY W. HARPER, Judges of the Panel.

OPINION AND ORDER

PER CURIAM.

This litigation consists of five actions pending in four federal districts: American and Litton, which have been consolidated in the Northern District of Oklahoma, and one action each in the Southern District of Florida, the Northern District of Illinois and the Northern District of Iowa.

Sundstrand Data Control, Inc. (SDC) is a party in all actions, and its parent is also a party in some of the actions. At issue in the five actions is the validity of certain SDC patents on components of a ground proximity warning system. The system gives audible warnings to the crew of an aircraft with respect to certain predetermined and potentially hazardous relationships between the aircraft and the ground. The same eight patents are involved in the Florida, Illinois and Iowa actions. Seven of those eight patents are also involved in American. The complaint in Litton questions the validity of fourteen patents, seven of which are also challenged in the Florida, Illinois and Iowa actions, and six of which are involved in American.

American and the Florida and Illinois actions were each filed on November 11, 1976, by SDC against manufacturers of competing ground proximity warning systems and/or airline users of competing systems. SDC alleges patent infringement in each complaint, and seeks damages and injunctive relief.

Defendants in their answers in the Illinois action have denied patent infringement and have asserted the affirmative defenses of invalidity and unenforceability of the patents, inequitable conduct by SDC in willfully withholding from the Patent Office information relevant to patentability, and patent misuse by violating the antitrust laws in the market for ground proximity warning systems. Further, defendants alleged that in 1974-75, SDC failed to disclose to the Federal Aviation Administration (FAA) that SDC had filed or intended to file patent applications relating to ground proximity warning systems and that, by so doing, SDC misled the FAA to enact regulations requiring the use of ground proximity warning systems on commercial aircraft. Defendants allege that the FAA would otherwise not have enacted those regulations because of a policy against forcing airlines to purchase equipment from a single supplier. As a result of this conduct, defendants charge, SDC is now estopped from claiming patent infringement. Defendants make similar allegations by affirmative defense and/or counterclaim in American and in the Florida action.

Litton was commenced on December 3, 1976, by a manufacturer of a ground proximity warning system that was sold to the defendant in American. The plaintiff in Litton seeks declaratory relief against SDC, alleging the unenforceability and invalidity of, and plaintiff's non-infringement upon, SDC's patents. Plaintiff charges SDC with violations of the federal antitrust laws by monopolizing and attempting to monopolize ground proximity warning systems for commercial aircraft. Plaintiff also accuses SDC of unfair competition with respect to the systems. Finally, plaintiff raises estoppel arguments similar to those raised by defendants in the Illinois action relating to SDC's conduct before the FAA.

The Iowa action was brought against SDC on June 27, 1977, by a manufacturer of ground proximity warning systems and by the defendants in the Illinois action. Plaintiffs' complaint is substantially similar to the affirmative defenses raised in the Illinois action.

Pursuant to 28 U.S.C. § 1407(c)(i) and Rule 8, R.P.J.P.M.L., 65 F.R.D. 253, 258-59 (1975), the Panel issued an order to show cause why these five actions should not be transferred to a single district for coordinated or consolidated pretrial proceedings.¹ All parties favor transfer under Section 1407, and the only disagreement centers on the selection of the transferee forum. SDC and its parent favor the Southern District of Florida, while all remaining parties favor transfer of at least part of all the actions to the Western District of Washington.

We find that these actions involve common questions of fact and that their transfer to the Western District of Washington under Section 1407 for coordinated or consolidated pretrial proceedings will best serve the convenience of the parties and witnesses and promote the just and efficient conduct of the litigation.

All parties recognize and we agree, that this litigation involves common factual questions regarding the validity of several SDC patents, and that transfer is therefore necessary in order to eliminate duplicative discovery, prevent inconsistent pretrial rulings and otherwise conserve time and effort for the parties, the witnesses and the judiciary. See In re FMC Corporation Patent Litigation, 422 F.Supp. 1163, 1165 (Jud.Pan. Mult.Lit.1976).

SDC and its parent, in opposing transfer to the Western District of Washington, rely on the Panel's traditional reluctance to transfer a group of actions to a forum in which no related action is pending. These parties argue that judicial manpower would be wasted if the transferee judge's expertise gained in conducting pretrial activities could not be put to use in the trial of at least one of the actions. SDC and its parent contend that discovery will occur in many places other than the Western District of Washington, and that the civil caseload in that district is much heavier than in other potential transferee forums. In support of the Southern District of Florida as the transferee forum, SDC and its parent maintain that the civil caseload is lighter in that...