Duhn Oil Tool Inc v. Cooper Cameron Corporation

Filing 431

ORDER GRANTING 430 Defendant Cameron's Motion For Leave To File Supplemental Briefing In Support Of Its 319 Motion Partial Summary Judgment of No Lost Profits Damages, signed by Judge Oliver W. Wanger on 7/30/2010. (Gaumnitz, R)

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CHARLES J. ROGERS, admitted pro hac vice CONLEY ROSE, P.C. 600 Travis Street, Suite 7100 Houston, Texas 77002-2912 Telephone: [phone] Facsimile: [phone] e-mail: [e-mail] Attorneys for Defendant Cooper Cameron Corporation n/k/a Cameron International Corporation UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA DUHN OIL TOOL, INC., Plaintiff/Counterclaim-Defendant, vs. COOPER CAMERON CORPORATION, n/k/a CAMERON INTERNATIONAL CORPORATION Defendant/Counterclaim-Plaintiff. Case No. 1:05-cv-01411-OWW-GSA ORDER GRANTING DEFENDANT CAMERON'S MOTION FOR LEAVE TO FILE SUPPLEMENTAL BRIEFING IN SUPPORT OF ITS MOTION FOR PARTIAL SUMMARY JUDGMENT OF NO LOST PROFITS DAMAGES Hon. Oliver W. Wanger

Pending before this Court is Defendant Cooper Cameron Corporation, n/k/a Cooper Cameron Corporation, ("Cameron")'s Motion for Leave to File Supplemental Briefing in Support of Cameron's previously filed Motion (Doc. No. 319) for Partial Summary Judgment of No Lost Profits Damages. The Court hereby grants Cameron's Motion for Leave. The Court further finds, as a matters of law, that: 1. The Plaintiff Duhn Oil Tool, Inc. is precluded from claiming damages based

on the alleged lost profits of its parent corporation Seaboard International, Inc., or any other corporate affiliate of Duhn Oil Tool, Inc. See Poly-America, L.P. v. GSE Lining

Technology, Inc., 383 F.3d 1303, 1311 (Fed. Cir. 2004) ("While Poly-America may have the right to sue under its patents, both as an owner and as a back-licensee, it can only recover its own lost profits, not [its affiliate] Poly-Flex's.") -1SUPPLEMENTAL ORDER GRANTING PARTIAL SUMMARY JUDGMENT OF NO LOST-PROFITS DAMAGES

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2.

Duhn Oil Tool, Inc. became a non-operating holding company when it was

acquired by Seaboard International, Inc. on December 19, 2007. Thus, Duhn Oil lacked the prerequisite marketing and manufacturing capability required to claim lost-profits damages accruing after that acquisition date. See Rite-Hite Corp v. Kelly Co., Inc., 56 F.3d 1538, 1545 (Fed. Cir. 1995) (en banc) ("To recover lost profits damages, the patentee must show a reasonable probability that, `but for' the infringement, it would have made the sales that were made by the infringer.") (citing Panduit Corp. v. Stahlin Bros. Fibre Work, Inc., 575 F.2d 1152, 1156 (6th Cir. 1978). The Panduit test requires that a patentee establish

manufacturing and marketing capability to exploit a demand for the patented product. 3. Seaboard International, Inc. is not a patentee as defined by 35 U.S.C. §§ 281

and 284, and, thus, would lack constitutional standing to assert any claim for alleged infringement of the patent-in-suit, U.S. Patent No. 6,920,925. 4. Hearing Date: September 27, 2010 at 10:00a.m. in Courtroom 3 (7th Floor) before

Judge Wanger. IT IS SO ORDERED.

Dated: July 30, 2010

/s/ OLIVER W. WANGER UNITED STATES DISTRICT JUDGE

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SUPPLEMENTAL ORDER GRANTING PARTIAL SUMMARY JUDGMENT OF NO LOST-PROFITS DAMAGES