# Petition — Swift Agricultural Chemicals Corp. v. Farmland Industries, Inc.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petition
- **Published:** January 1, 1982
- **Citation:** 459 U.S. 860

## Text

82•68 aun 23 1992

In the
Supreme Court of the United States

Ocroper Term, 1981

SWIFT AGRICULTURAL CHEMICALS
CORPORATION,

Petitioner,
v8.

FARMLAND INDUSTRIES, INC., ET AL.,
Respondents.

PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

Joun W. Horetor

Rol O. Sram

Haircut, Hormor, Davis & JamsBor
55 East Monroe St., Suite 3614
Chicago, Illinois 60603

(312) 263-2353

Attorneys for Petitioner

The Scheffer Press, Inc—(312) 263-6850

i
QUESTIONS PRESENTED

Given that a court in one eireuit is not bound by an
earlier decision of a court in another circuit, what, if
any, respect should be paid to that earlier decision?

Are the holdings of the Fifth Cireuit Court of Appeals
and the District Court for the Eastern District of
Louisiana as to the scope, validity and infringement of
U.S. Patent No. 3,464,808 correct or are the directly

conflicting holdings of the Tenth Circuit Court of Appeals
below correct?

Is it a denial of procedural due process for a Court to
adjudicate a claim that was not presented to it?

LIST OF PARTY TO THE PROCEEDINGS WHOSE
JUDGMEK * IS SOUGHT TO BE REVIEWED

Pursuant to Rules 21.1(b) and 28.1 of this Court, Peti-
tioner Swift Agricultural Chemicals Corporation states
that its name has been changed from Swift Agricultural
Chemicals Corporation to Estech, Inc., that the parent
of Estech, Inc. is ESMARK, Inc., and that Estech, Inc.
has three partially owned subsidiaries, viz. Consolidated
Fertilizers Limited (Australia), Montan Transport USA
(New York), and Yong Nam Chemical Company, Lid.
(Korea).

ii

TABLE OF CONTENTS

PAGE
QUESTIONS PRESENTED i
List Of Party To The Proceedings Whose 9

Is Sought To Be Reviewed... i
I RAS cccnedicenctisasttntinnensenintcnrsncsennenins 1
xxx —4 1
STATEMENT OF THE CASE ———.—.— 2
REASONS FOR GRANTING THE WRIT . 7

I. A Conflict Between The Cireuits 7
II. A Second Conflict Between The Cireuits 12
III. A Denial Of Due Process . 17
rr 5
TABLE OF AUTHORITIES
Cases

Aldens v. Miller, 610 F.2d 539 (8 Cir. 1979) ............ 10
The Barbed Wire Patent, 143 U.S. 275 (1892) 15

Blonder-Tongue Labs v. University of Illinois Founda-
tion, 402 U.S. 313 (1971 4, 19

Blumcraft of Pittsburgh v. Kawneer Company, Inc.,
482 F. 2d 542 (5 Cir. 1973)

Bros Incorporated v. W. E. Grace Manufacturing
Company, 351 F.2d 208 (5 Cir. 1965) 10

Erie R. Co. v. Tompkins, 304 U.S. 64 (1938) ............ 11,12

Felburn v. New York Central Railroad Co., 350 F.2d
416 (6 Cir. 1965) 18

Fidelity Union Trust Co. v. Field, 311 US. 169
(1940) ‘

Hanna v. Plumer, 380 U.S. 460 (1965) 11

Inwood Laboratories, Inc. v. Ives Laboratories, Inc.,
880 U.S. (Nos. 80-2182 and 81-11, decided
June 1, 1982 8,9

King v. Order of Travelers, 333 U.S. 153 (1948) — 11
Leeds d Catlin v. Victor Talking Machine Co., 218

U.S. 301 (1909) 18
Maloney-Crawford Tank Co. v. Sauder Tank Co., 465
F.2d 1356 (10 Cir. 1972) 6,18

Maple v. Citizens National Rank, 437 F.Supp. 66
(W.D. Okla. 1977)

Mulvey v. Samuel Goldwya Productions, 433 F.2d

1073 (9 Cir. 1970) 7
Six Companies v. Highway District, 311 U.S. 180

(1940) 11
Stoner v. New York Life Ins. Co., 311 U.S. 464 (1940) 11
Swift v. Tyson, 16 Pet. 1 (1942) 11
Timely Products Corporation v. Arron, 523 F.2d 288

(2 Cir. 1975) 18
The Trustees of Dartmouth College v. Woodward,

4 Wheat. 518 (1819) 17
United States v. Booth, 399 F.Supp. 975 (C.D. S. C.

1975) a

United States v. Mitchell, 432 F.2d 354 (1 Cir. 1970) 10
United States v. Nickles, 502 F.2d 1173 (7 Cir. 1974) 10
West v. American TT Co., 311 U.S. 223 (1940) ... 11

iv

Statutes
PAGE
United States Code, Title 28, Section 1254(1) ....... 1
United States Code, Title 35, Section 102 3, 5, 15
United States Code, Title 35, Section 106 .................... 3
United States Code, Title 35, Section 282 ................... 4,5
Orner AUTHORITIES

Vestal, Relitigation By Federal Agencies: Conflict,
Concurrence and Synthesis of Judicial Policies, 55
0 10

IN THE
SUPREME COURT OF THE UNITED STATES
Ocroser Term, 1981

No.

SWik'T AGRICULTURAL CHEMICALS
CORPORATION,

Petitioner,

vs.

FARMLAND INDUSTRIES, INC., ET AL..
Respondents.

PETITION FOR A WRIT OF CERTIORARI
TO THE UNITED STATES COURT OF APPEALS
FOR THE TENTH CIRCUIT

Petitioner, Swift Agricultural Chemicals Corporation,
respectfully prays that a writ of certiorari issue to review
the judgment entered on March 25, 1982, by the United
States Court of Appeals for the Tenth Circuit.

OPINIONS BELOW

The opinion of the Court of Appeals for the Tenth
Cireuit is reported at 674 F.2d 1351 and is reproduced
in the Appendix.

JURISDICTION

The judgment of the Court of Appeals for the Tenth
Cireuit was entered on March 25, 1982. The jurisdiction
of this Court arises under 28 U.S.C. 4 1254(1).

STATEMENT OF THE CASE

This is one of three patent infringement suits brought
by the Petitioner, Swift Agricultural Chemicals Corpora-
tion, on its U.S. Patent No. 3,464,808 for an invention
of a process for making ammonium polyphosphate, a
liquid fertilizer. The first case, Swift v. Usamex, was
tried before the United States District Court for the
Eastern District of Louisiana in 1976. That Court held
the patent valid, enforceable and infringed, and enjoined
further infringement by Usamex. (App. C) Usamex filed
a Notice of Appeal but while it was pending, the parties
settled the case; Usamex paid $1,383,000.00 for past in-
fringement and attorney fees and took a license under
which it has additionally paid more than $480,000.
After conclusion of the Usamex litigation, Swift
brought two other suits on the same patent; the present
one against Farmland Industries, Inc. and Farmers
Chemical Company in the District of Kansas, and one
against Mississippi Chemical Company in the Southern
District of Mississippi. Extensive discovery was had in
each case and by early 1980 each case was awaiting a
trial setting.

In the meantime, Usamex sought relief from the judg-
ment against it under Rule 60(b). Usamex asked for the
return of the million dollars, on the grounds that it had
“newly discovered evidence,” establishing non-infringe-
ment. Usamex further prayed for a declaratory judgment
that it did not infringe Swift’s patent and, accordingly,
owed no royalties under the license. Usamex contended
that it had performed post-trial tests which established
that the time that the chemicals remained in the reactor
pipe was at least 3 seconds and, since the patent claims

called for a residence time of less than one second,
Usamex did not infringe with either its newly modified
process or the adjudicated process.

ae abate heh enn cols
new tests were irrelevant, that the patent claims had to
be interpreted in light of the patent specification and
the understanding that those skilled in the art would
have ascribed to it at the time of the application for
patent. The District Court agreed, interpreting the claims
as calling for a one second residence time to be deter-

in the reactor pipe. Both the Rule 60(b) Motion and the
declaratory judgment were, accordingly, dismissed.
(App. D)

The present case was tried but not decided before this
second decision in Usamex. With full awareness of both
the second and the prior Usamex decisions, the Kansas
District Court held to the contrary, ic., that the Swift
patent was invalid and not infringed. (App. B) As
grounds for its holding of invalidity, the Kansas Court
held that there was nothing new or novel in the patented
invention (35 U.S.C. 102) and, further, even if there were,
the invention would have been obvious (35 U.S.C. 103).

trict when it held the patent valid,
art had been considered by the United States Patent

pa en

Office. when it granted the patent.“ One of the grounds
for non-infringement was that the chemical reactants re-
mained in the reactor for more than one second.

The Court also held all of the seven claims of the
patent invalid, even though Swift had asserted only
claims 1, 2 and 4, and the defendant had acknowledged
that those were the only claims in issue.

Following the Kansas Court’s holding of invalidity,
Mississippi Chemical moved for summary judgment in
the Mississippi Court, contending that Swift was collat-
erally estopped from asserting the patent once the pat-
ent had been held invalid by one court, even though an-
other court had held the patent valid, citing Blonder-Ton
gue Labs v. University of Illinois Foundation, 402 US.
313 (1971) and Blumcraft of Pittsburgh v. Kawneer Com-
pany, Inc., 482 F.2d 542 (5 Cir. 1973). The parties then
stipulated to stay that case pending the outcome of this
one.

In the meantime, Usamex appealed the dismissal of the
declaratory judgment action and Rule 60(b) Motion, con-
tending that the District Court had not correctly constru-
ed the patent in holding that the time that the chemicals
were in the reactor was immaterial to infringement. The
Fifth Cireuit Court of Appeals disagreed. It affirmed on
the basis of the Opinion of the District Court in Louisi-
ane. (App. E)

After the Fifth Circuit decision, the Tenth Circuit
District Court. (App. A) As did the lower court, the

* Pursuant to 35 U.S.C. 4 282, “A patent shall be
sumed valid.”, — —
To ise

plication was not before Judge Sear.’’ Unmentioned at

The Bookey patent was before and considered by the Lou-

On the infringement issue, the Court below adopted
the District Court’s reliance on tests which were found
to show that the chemicals remained in the reactor for

Regarding the patent claims that were not in issue but
were nevertheless adjudicated as invalid, the Court said
they were in issue because “‘Farmland’s answer brought
up the defense of the patent’s invalidity.““ No recog-
nition was given by the Court to the fact that Swift had
asserted only claims 1, 2 and 4, that no evidence or argu-
ments were presented by either party pertaining to the
remaining claims of the patent, and that defendants, in
their post trial brief, stated “The claims at issue read as
follows . . .,”” quoting claims 1, 2 and 4.

A Conflict Between The Circuits

The decision of the Court below is in diréct conflict
with the decision of the Fifth Cireuit in the Usamer case,
and is also in direct conflict with the earlier decision on
patent validity and infringement of the Louisiana Dis-
trict Court in the Usamez case. That these conflicts should
be resolved by this Court is the subject of the next sec-
tion. The more crucial question, however, arises not from
the conflict itself but rather from the manner in which
the second court, the Court below, treated — or as it were,
did not treat — the decision of the first court.

The issue is: given that a court of one circuit is not
bound by an earlier decision of a court of another circuit,
what, if any, respect should be paid to that earlier
decision?

There is a direct conflict amongst the cirevits. It ranges
from the approach in Maple v. Citizens National Bank, 437
F.Supp. 66, 68 (W.D. Okla. 1977) that:

„. . .this Court must consider the (other) Circuit
ruling as substantially binding and should whenever
possible follow the decision of a court of uppeals of
a sister circuit.” ;
to the approach in Mulvey v. Samuel Goldwyn Produc-
tions, 433 F.2d 1073, 1076 (9 Cir. 1 where che Court
said nothing more than:

“We daagon with the contrary consaion on the
standing issue reached by the Second Cireuit.“;

to the approach in United States v. Booth, 399 F.Supp.
975 (C.D. S.C. 1975) where the Court said:
*. . this court need not attempt to justify deviation
from the rule announced by the Fifth Cireuit.“; and
to the approach of the Tenth Circuit below of not even
mentioning that there was a conflicting decision of the
Fifth Cireuit.“
The conflict is important and calls for the guidance
of this Court.

Probably the single most pressing problem facing the
bench and the bar today is the proliferating amount
of litigation. Solutions have been suggested from many
quarters, new judges have been added, portions of the
bar have been rebuked for litigiousness, yet the problem
remains, indeed, it worsens.

One cause of the problem is unpredictability. In recent
years, little if any regard has been given to stare decisis,
comity, and the whole notion of uniformity and pre-
dictability of the law. A lawyer cannot counsel his client
with much assurance as to the likely outcome of possible
or pending litigation; even that involving issues ulready
litigated. Courts all too often will ignore or circumvent
precedents, rules or statutes in order to arrive at a deci-
sion in favor of the “felt” victor. The “law” becomes
ad hoc, i.e., the absence of law.

The recently decided case of Inwood Laboratories, Inc.
v. Ives Laboratories, Inc. U.S. (Nos. 80.2182
and 81-11, decided June 1, 1982) provides a striking
example. There, this Court reversed the Second Cireuit's

* One wonders how often opi simply fail to men-

reversal of the district court on the sole ground that
the Second Circuit vad not accorded the required weight to
the District Court “act findings. Yet, that fundamental
rule — a touchstone of appellate authority — was not
raised by any of the six petitioners or five Amici Curiae
supporting the petitioners. Nor was that issue raised
by petitioners in their earlier petition for rehearing to
the Second Circuit Court of Appeals.“

Inwood issued a clear admonition regarding the defer-
ence to be accorded to factual determinations of trial
courts by courts of appeal. That admonition, when fol-
lowed, will promote greater uniformity and predictability
in the law and eventually will be reflected by lawyers
counseling their clients to forego appeals where the trial
courts’ decision rests on fact determinations which are
not clearly erroneous.**

The present case provides this Court with another
opportunity to foster the objective of uniformity and
predictability. The cases quoted above demonstrate that
the courts are in conflict and are in need of guidelines
as to what respect, if any, to give to precedents of

„The point referred to in Justice White’s concurring
opinion (footnote 1) pertaining to Darby’s raising the
issue of function ability and Rule 52(a) was also raised
in the petitions for rehearing in the Second Circuit.

A graphic illustration of this is found in the *
= practice in the state courts in Chicago. The

ows that the appellate court consistently adheres to
the rule that a jury verdict will be overturned only
where the verdict is “against the manifest a of the
evidence.” Appeals are rarely taken.

nin uss

courts in other circuits.“ This Court should speak to
Without such guidance, the court below felt no neces-
sity even to advance reasons why its legal construction
of the patent in suit was preferred to the earlier con-
struction of the Fifth Circuit Court of Appeals. Indeed,
it felt no compulsion to even discuss the Fifth Cireuit
decision which was in direct conflict with its own. To
countenance a court’s ignoring a precedent of another
circuit that is directly on point, is to further advance
the notion that each court has free rein to rule as it will,
unbridled by the law and prior holdings on identical
issues.

This case also raises the same question as to the effect
of the precedents of district courts. Thus: what respect,
if any, should be accorded by a cireuit court or by a
district court to a precedent rendered by a district court
in another circuit? The Court of Appeals below ackowl-
edged the Louisiana District Court decision holding the
patent valid but failed to acknowledge that the validity
holding was made with respect to the same prior art as
that on which the Court below held the patent invalid.
In short, the earlier opinion was totally ignored and no
reasons were offered by the Court below as to why it

* Additional examples of the conflicting treatment
Wenn
e. g., Bros v. W. FE. acturing
Company, 351 F. 2d 208, 210 (5 Cir. 1965); United States
v. Viokles, 502 F. 2d 1173, 1176-1177 ( 7 Cir. 1974); United
States v. Mitchell, 432 F.2d 354, 356 (1 Cir. 1974); Aldens
v. Miller, 610 F.2d 539, 541 (8 Cir. 1979); and see Vestal,
Relitigation By Federal ies: Conflict, Concurrence
Arn — of Judicial Policies, 55 N.C. L. Rev. 127

a

arrived at a contrary holding. Similarly, with regard to
the District Court below, it also gave scant consideration
to the opinion of validity and did not even mention
the Louisiana Court’s second opinion construing the
patent.

Ironically, this Court in Erie R. Co. v. Tompkins, 304
U.S. 64 (1938) and its progeny, has provided instructions
as to how federal courts are to treat the precedents of
the various levels of state courts in diversity cases, but
has not provided similar instruction as to a federal
court’s treatment of precedents of other federal courts.*

The twin objectives of Erie R. Co. of promoting uni-
formity — “The Erie rule is rooted in part in a realiza-
tion that it would be unfair for the character or result
of a litigation materially to differ becanse the suit had
been brought in a federal court”** and avoiding “forum

* After Erie R. Co. overruled Swift v. Tyson, 16 Pet.
1 (1842) and held that federal courts 212
cases are bound by the decisions of the hi court
of the 8 state, the question arose as to what
respect, if any, should be given to the precedents of the
lower state courts. This Court responded by holding
in three cases that federal courts are bound by decisions
of a state’s intermediate appellate courts “unless there is
persuasive evidence that the highest state court would
rule otherwise” King v. Order of Travelers, 333 U.S. 153,
158 (1948); Six Companies v. Highway District, 311 U.S.
180 (1940); West v. American T&T Co., 311 U.S. 223
4340 Stoner v. New York Life Ins. Co., 311 U.S. 464
1940) and later in two other cases that the respect
that should be given to state trial court decisions was
commensurate with that given such decisions by the state’r
courts Fidelity Union Trust Co. v. Field, 311 U.S. 169
(1940); King v. Order of Travelers, supra at 158.

Hanna v. Plumer, 380 U.S. 460, 467 (1965).

eer ee

shopping” — are equally applicable here and afford an
additional reason for granting the writ.
The conflict should be resolved.

II.
A Second Conflict Between The Circuits

Certiorari should also be granted to resolve the conflict
between the decision below and that of the Fifth Circuit
Court of Appeals in the Usamex case. The decision below
is also in direct conflict with the earlier unappealed
decision of the Louisiana District Court.

The patented invention is for a process for making
liquid ammonium polyphosphate. As the District Court
below found: prior to the invention, “those skilled in
the art were aware of a problem urgently in need of
resolution” (App. B at 1301). That awareness and the
urgency are reflected by the research and development
efforts conducted in the nine years before the invention
at TVA’s National Fertilizer Development Center; at
Dorr-Oliver, Inc.; at Union Oil Company of California;
and at Usamex Fertilizers, Inc. The net result was failure.
None developed a process for commercially producing
ammonium polyphosphate.

Swift’s inventor, Tommy Carter Kearns, found the
way. Others soon followed. TVA, “the dominant force
in liquid fertilizer research” (App. C at 25), on learning
of Kearns’ invention, redirected its efforts and quickly
had the solution that had so long eluded it. In turn, TVA
was a guide to others: U: mex, Mississippi Chemical
and Farmland. The solution to the problem that had
been so “urgently in need of resolution” quickly paid
dividends in the marketplace. In the past 12 years,
Usamex alone has sold over 100 million dollars of am-
monium polyphosphate made by the patented process.

8

At the time that the Court below was considering the
validity and infringement of the Kearns patent, it was
not writing on a clean slate. The United States Patent
Office had determined that Kearns’ invention was entitled
to a patent. The Louisiana District Court, in a thorough
opinion, held the patent valid and infringed by Usamex.“
In Usamez II, the Fifth Cireuit Court of Appeals affirmed
the construction of the patent placed on it by the Louisiana
Court — the same construction on which the patent had
earlier been held valid.

With this background, one would think that the Kansas
District Court and the Tenth Cireuit Court of Appeals
would have began the inquiry by asking Farmland:
“What new evidence do you have? Why are the Patent
Office, a District Court and a Court of Appeals all
wrong?” These questions were not asked and no answers
were given.

Rather, the Court below, as did the District Court he-
fore it, approached the issues as if they were fresh
new issues, as if nothing had gone on before. It found
the patent invalid on the grounds that the invention had
already been made by Getsinger (of TVA); by Lutz and
Rubio (of Dorr-Oliver); and by Young (of Union Oil
Company of California). The very failures that had
weighed in favor of patentability in the analysis of the
Louisiana Court were elevated to the status of prior
invention by the Tenth Circuit.**

*In an affidavit later filed in the Mississippi Chemical
ease, Usamex’s attorney stated that Usamex had paid
over $600,000 in attorney and expert fees in its preparing
its defenses to the case.

It is curious that while the Tenth Cireuit and the
Kansas District Court held that the Kearns invention
was earlier made by Getsinger, Young and Lutz/Rubio,

aw $6 ou

The crucial divergence between the Courts below and
the Fifth Circuit Courts is the residence time element
of the Kearns’ process. The Fifth Circuit recognized
that Kearns had discovered that in order to succeed in
producing ammonium polyphosphate, the process had to
take place very rapidly, i.e., in less than one second.“
No one had previously recognized this. Getsinger, of TVA,
stirred the reactants in consecutive tanks and taught
in his patent employing a residence time of 1 to 180
minutes. Young, of Union Oil, taught in his patent the
use of a three-step process using a complex tubular
structure depicted in Figure 8 of his patent. No residence
time was specified and he admitted that he had never
constructed the device.*** The Lutz/Rubio patent applica-
tion was rejected by the Patent Office in an interference
proceeding with Bookey. Bookey teaches a reaction time
of one hour.****

** (Continued)

the Patent Office issued patents to Getsinger and Young
and would have issued one to Lutz/Rubio had it not
determined that Bookey had made the Lutz/Rubio inven-
tions earlier, and then, while knowing all this, the Patent
Examiner issued a patent to Swift’s Kearns.

*** Notwithstanding this admission, the opinion of the
Court below states that the 5 omen “was in fact built
and operated” (App. A at

**** When two copending patent applications are deemed
by the Patent Office to claim the same invention, it de-
clares an interference to deterimne which applicant made
the invention first. In this instance, the Patent Examiner
declared the interference between the Lutz/Rubio lica-
tion and the Bookey application and ruled that
pr alr ae fon hay ora 12

r declaring interference, the same Examiner grant-
ed the patent in suit to Kearns,

* *

Yet, the two courts below found that each of Getsinger,
Young and Lutz/Bookey taught residence times of less
than one second and therefore each of their process was
the same as, i.e., anticipated (35 U.S.C. 102), the Kearns
patent in suit. This striking conclusion was not drawn
from the various patents — as it obviously could not
have been — but from testimony of the three workers
given during this litigation almost 20 years after the fact.
Ignored by the Court below were the law, the facts and
the decision in the Fifth Cireuit and the Patent Office.

The Court ignored the law laid down by this Court
nearly a century ago in The Barbed Wire Patent, 143
U.S. 275 (1892) :

“Witnesses whose memories are prodded by the
eagerness of interested parties to elicit testimony
favorable to themselves are not usually to be de-
pended upon for accurate information. The very
fact, which courts as well as the public have not failed
to recognize, that almost every important patent,
from the cotton gin of Whitney to the one under
consideration, has been attacked by the testimony
of witnesses who imagined they had made similar
discoveries long before the patentee had claimed to
have invented his device, has tended to throw a cer-
tain amount of discredit upon all that class of evi-
dence, and to demand that it be subjected to the
closest scrutiny. Indeed, the frequency with which
testimony is tortured, or fabricated outright, to build
up the defense of a prior use of the thing patented,
goes far to justify the popular impression that the
inventor may be treated as the lawful prey of the
infringer. .. .”

3

The Court below further ignored the teachings of the
prior art patent documents which clearly show that none
of the inventors recognized that the key was a short
residence time; that each of these workers failed to
achieve a commereially workable solution to the problem;
and that the Patent Office deemed each of these approach-
es as patentably distinct, granting patents to Getsinger,
Young and Bookey and then, with knowledge of the
three, granting the patent in suit to Kearns.

Also ignored were the decisions in the Fifth Cireuit
in which the criticality of the short residence time was
recognized, and in which the patent was held valid over
the very same art that was before the Tenth Cireuit.
Notwithstanding this direct conilict, the Court below
makes no real attempt to justify its contrary conclusion.”

Finally, having construed the patent in suit one way
to hold the patent invalid, the Court below construed it
another way to find no infringement. It held (App. A

Cireuit Court of Appeals decision that the time that the
reactants remain in the reactor is immaterial to the issue

Ss

III.
A Denial Of Due Process

In arguing the Dartmouth College case before this
Court, Daniel Webster declared that by due process
of law is meant a law which hears before it condemns;
which proceeds upon inquiry, and renders judgment only
after trial.” The Trustees of Dartmouth College v.
Woodward, 17 U.S. 518, 581.

In the present case, valuable patent property rights
were condemned as worthless, even though the Teuth
Cireuit Court of Appeals and the trial court below beard
nothing, made no inquiry, and provided no trial as to
those property rights.

The facts, as shown, are straightforward. Swift

charged defendants with infringing claims 1, 2 and 4 of
the patent in suit. (Swift’s Pre Trial Proposed Findings
of Fact No. 60) The case went to trial on those three
claims, no evidence was proffered as to the remaining
four claims of the patent (claims 3, 5, 6 and 7) and no
arguments were advanced as to them. In short, no issue,
evidence or argument was presented as to claims 3, 5, 6
and 7.

The Tenth Circuit below offered two reasons in support
of its affirmance, holding these claims imvalid. Neither
is sound.

The Court stated that since the four claims were
dependent upon claims 1 and 2, they “could not stand
alone as patentable inventions.” That is not the law:
it is settled in the Patent law that “each claim of a patent
must be considered separately and each must stand or

*

fall alone.” Maloney-Crawford Tank Corp. v. Sauder Tank
Co., 465 F.2d 1356, 1365 (10 Cir. 1972); Leeds & Catlin
v. Victor Talking Machine Co., 213 U.S. 301, 319 (1909);
Timely Products Corporation v. Arron, 523 F.2d 288, 296
(2 Cir. 1975). Moreover, and obviously more crucial, that
is not the point: the question is whether the issue was
before the Court—whether due process was accorded
— not whether the Court may or may not have correctly
decided the matter not before it.

As to that question, i.c., whether the issue was before
the Court, the only basis offered by the Tenth Circuit
in support of its holding that the issue was presented
was that (p. 19) »Farmland's answer brought up the
defense of the patent’s invalidity.” An Answer to a Com-
plaint, however, cannot raise an issue as to patent claims
not asserted to infringe by the patent owner. “A court
may not pass upon the validity of claims which were
not put in issue, either by a claim of infringement or
by a counterclaim for declaration of invalidity.” Timely
Products Corporation v. Arron, 523 F.2d 288, 296 (2 Cir.
1975); Felburn v. New York Central Railroad Co., 350
F.2d 416, 420 (6 Cir. 1965).

Further, it is clear that the parties knew, and the trial
court should have known, that only claims 1, 2 and 4
were in issue. No evidence or arguments were presented
as to the remaining claims and, if any doubt remained,
each of the parties explicitly pointed out in its post trial
submissions that only claims 1, 2 and 4 were involved.
Defendants spelled out in their Post-Trial Brief: “The
claims at issue read as follows: . . and claims 1, 2 and
4 were then quoted.

The deprivation of property by a United States Court
of Appeals is such a fundamental violation of the Con-

a

stitutional right to procedural due process that it presents
one of those rare cases in which the lower court (Supreme
Court Rule 17):

“. .. has so far departed from the accepted and

usual course of judicial proceedings, or so far sanc-
tioned such a departure by a lower court, as to call
for an exercise of this Court’s power of supervision.”*

The writ should issue.
CONCLUSION

The two conflicts between the circuits and the denial
of due process present issues to which this Court should
speak.

A writ of certiorari to the Tenth Circuit Court of
Appeals is respectfully sought.

Respectfully submitted,

Joun W. Hormor
Rol O. Sranmmm
55 East Monroe St., Suite 3614
Chi Illinois 60603
(312) 263-2353 *

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385009_0411%3A1. Public record. Not legal advice.
