Case Summaries

Intellectual Property

[03/11] Delaware Valley Floral Group, Inc. v. Shaw Rose Nets, LLC
In plaintiffs' suit seeking declaratory relief against the inventor and owner of a patent relating to a process that produces larger rose heads by placing elastic, porous nets over the rose heads during the growing process, district court's grant of summary judgment pursuant to the on-sale bar under section 102(b) is affirmed where: 1) defendant failed to raise a genuine issue of material fact surrounding the dates of conception or commercial sales; 2) defendant failed to dispute that the invention was ready for patenting; and 3) defendant failed to show that the district court erred in disregarding the evidence presented in its motion for reconsideration.

[03/11] Lab. Corp. of Am. Holdings v. Metabolite Labs., Inc.
In an action for a declaratory judgment that plaintiff did not breach a license agreement for failure to pay know-how royalties on homocysteine assays performed after judgment had been entered in a prior patent infringement and breach of contract action, defendant's appeal from summary judgment for plaintiff is transferred to the Tenth Circuit as: 1) the present cause of action does not arise under federal patent law nor does defendant's right to relief necessarily depend on resolution of a substantial question of federal patent law, and thus, this court does not have jurisdiction over the appeal; and 2) this action is a state law contract dispute over know-how royalties brought pursuant to the district court's diversity jurisdiction.

[03/09] Richardson v. Stanley Works, Inc.
In an action for patent infringement relating to a design patent for a multi-function carpentry tool that combines a hammer with a stud climbing tool and a crowbar, a district court's finding of noninfringement is affirmed as the district court correctly construed the claim at issue and correctly determined that the patent was not infringed.

[03/08] Ajinomoto Co., Inc. v. Int'l Trade Comm'n
In plaintiffs' suit alleging violation of section 337 of the Tariff Act in the importation and sale of certain lysine feed products made by the methods claimed in their patents relating to improved methods of producing L-lysine with genetically engineered E-Coli bacteria, the International Trade Commission's determination of no section 337 violation is affirmed where: 1) the asserted claims of plaintiffs' '698 patent and '160 patents are invalid under 35 U.S.C. section 112 for failure to comply with the best mode requirement; and 2) plaintiffs' argument that the Commissioner erred in finding '698 patent is unenforceable due to inequitable conduct is waived.

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Insurance Law

[03/17] Willbros RPI, Inc. v. Continental Cas. Co.
In an action against an insurer seeking a declaratory judgment that defendant was required to provide defense and indemnity, partial summary judgment for plaintiff is affirmed where: 1) conduct that clearly fell outside of the professional services exclusion provides an independent "but for" cause of the injury; and 2) indemnity issues must await resolution of the underlying suit. However, the order is reversed in part where defendant-insurers' "Other Insurance" provisions conflicted and liability for defense of the underlying suit should thus be apportioned on a pro rata basis.

[03/17] Chandler v. State Farm Mut. Auto. Ins. Co.
In an action seeking car rental costs from an insurer arising out of an auto accident, dismissal of the complaint is affirmed where, under California law, an insurer is permitted to recoup a payout from a third-party tortfeasor's insurance company before the insured has sued the third-party tortfeasor, and without first making the insured whole.

[03/16] Pendergest-Holt v. Certain Underwriters at Lloyd's
In an action by various insureds, including R. Allen Stanford, each faced with civil and criminal allegations that they engaged in a massive Ponzi scheme, seeking reimbursement of defense costs under a directors' and officers' liability policy from the policy's underwriters, an injunction prohibiting defendant-insurers from withholding defense funds is affirmed with modifications and remanded, and the underwriters are enjoined from refusing to advance defense costs as provided for in the D&O Policy unless and until a court "determine[s] in fact" by clear and convincing evidence "that the alleged act or alleged acts [of Money Laundering] did in fact occur."

[03/15] Catlin Syndicate Ltd. v. Imperial Palace of Miss., Inc.
In a declaratory judgment action by an insurer seeking a declaration that the policy did not cover certain Hurricane Katrina-related losses, summary judgment for plaintiff is affirmed where the proper method for determining loss under the business-interruption provision was to look at sales before the interruption rather than sales after the interruption.

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Environmental Law

[03/15] Communities for a Better Env't v. S. Coast Air Quality Mgmt. Dist.
In plaintiffs' suit against ConocoPhillips and the South Coast Air Quality Management District (District), for failing to prepare an EIR before approving a refinery project, judgment of the court of appeals is affirmed as neither the statute of limitations, nor principles of vested rights, nor the CEQA case law on which ConocoPhillips and the District rely, justified employing as an analytical baseline for a new project the maximum capacity allowed under prior equipment permits, rather than the physical conditions actually existing at the time of analysis. Therefore, the District abused its discretion in determining the project at issue would have no significant environmental effects compared to a baseline of maximum permitted capacity.

[03/10] Milwaukee Metro. Sewerage Dist. v. American Int'l Specilaty Lines Ins. Co.
In a sewerage district's suit for damages against an environmental liability insurer for denying coverage for costs incurred by the district in removing significant pollution on land it recently purchased, district court's judgment is reversed and remanded as the district court's finding that there was clear and convincing proof that a prior agreement existed between the insurance company and the sewerage district that the parcel would be covered property was clearly erroneous. Therefore, defendant is entitled to judgment on the sewerage district's reformation claim and, as a consequence, judgment in favor of defendant on its indemnity claim is vacated.

[03/09] Native Ecosystems Council v. Tidwell
In an action challenging the Forest Service's approval of a project to update grazing allotments in the Beaverhead-Deerlodge National Forest, summary judgment for defendant is reversed where: 1) because the Forest Service's environmental assessment was based on a nonexistent management indicator species, its habitat proxy analysis was not reliable; and 2) the Forest Service failed to take the requisite "hard look" at the project as required by the National Environmental Policy Act.

[03/08] Kane Cty. v. US
In an appeal from the denial of plaintiffs' motion to intervene in an action brought by Kane County, Utah, to quiet title to several purported rights-of-way across federal public lands, the order is affirmed where: 1) even assuming plaintiffs had an interest in the quiet title proceedings at issue, plaintiffs failed to establish that the U.S. could not adequately represent plaintiffs' interest; and 2) the denial of permissive intervention was not arbitrary and capricious.

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Commercial Law

[03/18] Desert Outdoor Adver., Inc. v. Oakland
In an action claiming that the city of Oakland's billboard ordinances violated the First Amendment, denial of plaintiff's motion to clarify the district court's prior declaratory judgment partially invalidating the ordinances is affirmed where, contrary to plaintiff's assertions, the declaratory judgment could not reasonably be understood to have struck down the entire scheme of sign-regulation.

[03/15] Kim v. Carter's Inc.
In plaintiffs' suit against a children's clothing retailer for damages under Illinois contract and consumer protection law, claiming they were victims of deceptive pricing, dismissal of the complaint is affirmed where: 1) with respect to plaintiffs' breach of contract claim, defendant has fulfilled its obligations under the straightforward, everyday sales contract described in the complaint; and 2) plaintiffs' allegations fail to establish the actual damages element of their Illinois Consumer Fraud and Deceptive Business Practice Act (ICFA) claim.

[03/11] Coyote Publishing, Inc. v. Miller
In a facial First Amendment challenge to restrictions on advertising by legal brothels, summary judgment for plaintiffs is reversed where the advertising restrictions targeted pure commercial speech, and there were strong reasons why the sale of sexual services, in particular, ought to be treated differently than other advertising bans on "vice" activities.

[03/10] Citigroup Global Markets, Inc. v. VCG Special Opportunities Master Fund Ltd.
In an appeal from a district court's order granting plaintiff's motion for a preliminary injunction and enjoining defendant from proceeding with an arbitration initiated against plaintiff before the Financial Industry Regulatory Authority, the order is affirmed where the "serious questions" standard for assessing a movant's likelihood of success on the merits remains valid in the wake of recent Supreme Court cases, and neither the district court's assessment of the facts nor its application of the law supported a finding of abuse of discretion.

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