Legal Document

486 U.S. 800 108 S.Ct. 2166 100 L.Ed.2d 811 Charles R. CHRISTIANSON, et al., Petitionersv.COLT INDUSTRIES OPERATING CORP. No. 87-499. Argued April 18, 1988. Decided June 17, Syllabus The principal statutes involved in this case, which arises from a jurisdictional dispute between Courts of Appeals, are 28 U.S.C. § 1295(a)(1)—granting the Federal Circuit exclusive jurisdiction over an appeal final decision federal district court "if that was based, whole or part, on" 1338—and 1338(a), grants courts original any civil action "arising under" statute relating to patents. Respondent (Colt), is leading manufacturer, seller, and marketer M16 rifles their parts accessories, held developed patents rifle, has maintained secrecy as specifications essential mass production interchangeable parts. Petitioner Christianson, former Colt employee, established corporation (also petitioner), began selling joined petitioners with other defendants patent-infringement lawsuit, but ultimately voluntarily dismissed its claims against petitioners. In meantime, notified several petitioners' current potential customers were illegally misappropriating Colt's trade secrets, urged them refrain doing business Petitioners then brought antitrust District Court for violations §§ 1 2 Sherman Act. complaint alleged, inter alia, letters, litigation tactics, conduct drove out business. later amended assert second cause under state law tortious interference relationships. asserted defense justified by need protect secrets countersued on variety arising alleged misappropriation patent specifications. filed motion summary judgment raising patent-law issue—related validity patents—to only obliquely hinted. awarded liability both tortious-interference claims. On appeal, Appeals it lacked transferred Seventh Circuit. Circuit, however, issue sua sponte, concluded "clearly wrong" case back. although concluding Circuit's wrong," addressed merits "interest justice," reversed Court. Held: 1. would not have 1295(a)(1), since one purposes 1338(a). Pp. 807-813. (a) order demonstrate plaintiff must set up some right, title, interest laws, at least make appear right privilege will be defeated construction, sustained opposite those laws. Section 1338(a) extends cases well-pleaded establishes either creates plaintiff's relief necessarily depends resolution substantial question law, necessary element A does not, reason alone, "arise even if anticipated complaint, parties admit truly case. Nor sufficient claim alleges single theory essential. If face there reasons completely unrelated provisions laws why may entitled seeks, 807-810. (b) Petitioners' count can readily understood encompass monopolization Act group-boycott issue, while arguably each claim, overall success claim. Even assuming, without deciding, rather than merely argument anticipation defense, rule focuses claims, theories, just because particular might governed mean entire "arises law. Examination reveals (on prevailed Court) involved, Since sought same analysis obtains 810-813. 2. reference congressional policy compel finding jurisdiction. One Congress' objectives creating reduce lack uniformity uncertainty legal doctrine administration Although goals better served fixed actually litigated, nevertheless, Congress determined relevant focus when granted basis courts' latter well-tried referent same. legislative history confirms focus. 813—814. 3. here cannot based Rule Civil Procedure 15(b) deeming new independent action—an implied assuming appeals could furnish itself such theory, simply no evidence "express consent" among parties, required Rule, litigate papers focused almost entirely issues deemed fundamental fell squarely within purview theories recovery, defenses, counterclaims pleadings already encompassed. 814-815. 4. There merit contention obliged adopt law-of-the-case applies much decisions coordinate court's own decisions, policies supporting apply greater force transfer substantive However, transferring first decide issue. That did explain rationale irrelevant. Thus, had jurisdiction, departed Moreover, expresses practice generally refuse reopen what been decided, limit power. exceed power revisiting once prior decline Most importantly, bind reviewing below. 815-818. 5. after erred deciding reach anyway "in justice." created confers. Upon authority, 1631, decision—whether dismiss or, justice, extend where none exists always worked injustice cases—especially situation where, here, litigants bandied back forth two courts, insists Such situations inhere very nature lines, few lines so finely drawn leave room disagreement close cases. should achieve end quick settlement questions adhering strictly principles Under principles, transferee find plausible, inquiry end. 818-819. 822 F.2d 1544 (CA Fed.1987), vacated remanded. BRENNAN, J., delivered opinion unanimous STEVENS, concurring opinion, BLACKMUN, joined, post, p. 819. Stuart Lefstein, Rock Island, Ill., Anthony M. Radice, New York City, respondent. Justice BRENNAN This requires we peculiar battle Each adamantly disavowed other. And other's wrong." 798 1051, 1056-1057 (CA7 1986); 1544, 1551, n. 7 Fed.1987). therefore forced shuttle Chicago Columbia search hospitable forum, years, still lacks do so. * Industries Operating Corp. accessories. dominant market position dates 1959, acquired license 16 manufacture M16's precursor. continued develop United States Army adopted standard assault patented additional improvements. Through various devices, also shroud around certain For example, conceal many manufacturing otherwise revealed engineering drawings, licenses others hires employees access proprietary information, contractually obligates disclose 3 Christianson employee who acceded nondisclosure agreement. leaving respondent's employ 1975, petitioner International Trade Services, Inc. (ITS), domestically abroad. depended information considers proprietary. expressly waived rights early transactions. precise scope waiver matter considerable dispute. 1983, lawsuit companies arranged sale El Salvador. Evidence suggested supplied specifications, enjoining further disclosures. When declined motion, 4 Three days dismissal "pursuant . (15 15) Clayton 26) damages, injunctive equitable Sections & 2). ." App. 7. "[o]the[r] conduct" context, included following obscure passage: 5 "18. assumed throughout life through 1980. Unless invalid wrongful retention contravention Patent Law (35 112), 1980, expired, anyone 'who ordinary skill rifle-making art' able use technology expired earlier monopoly 17 years. 6 "19. ITS else manufacture, contract supply, sell M-16 accessories thereof present time." Id., 9. interposed 8 raised hinted above-quoted paragraphs—that inception failure "enable person skilled art same" well description "the best mode contemplated inventor carrying his invention." 35 112. benefited protection patents, continues, "trade secrets" disclosed lost state-law protection. argued hold "Colt's [their] invalidity shall taken respect all said material." 58. 9 essentially relying 112 articulated above. process, invalidated nine declared unenforceable, enjoined enforcing "any form secret technical M16," ordered disgorge information. 613 F.Supp. 330, 332 (CD Ill.1985). 10 appealed which, full briefing argument, issued unpublished See 1631. F.2d, 1056-1057, 1062. adhered ruling, exhibited "a monumental misunderstanding court," 1547, id., Nevertheless, proceeded address 1559-1560, We certiorari, 484 985, 500, 98 499 (1987), now vacate II 11 As 1295(a)(1) "an [28 U.S.C.] section 1338. ."1 turn, provides part "[t]he before us turns whether statute, part" 12 interpreting 1338's precursor, long ago title construction these laws." Pratt v. Paris Gas Light Coke Co., 168 255, 259, 18 62, 64, 42 L.Ed. 458 (1897). Henry A.B. Dick 224 1, 16, 32 364, 367, 56 645 (1912). Our identical language provisions, particularly general federal-question provision, 1331 ("The actions Constitution, treaties States"), quite naturally applied test.2 Gully First National Bank Meridian, 299 109, 112, 57 96, 97, 81 70 (1936) (the "must supported Constitution given effect, they receive another") (citations omitted). recently explained, "only law," Franchise Tax Board California Construction Laborers Vacation Trust, 463 27-28, 103 2841, 2856, 77 420 (1983), "federal claims," 13, 2848. Linguistic consistency, historically adhered, demands likewise 1553-1556; 1059-1061. 13 most superficial perusal establishes, disputes, sense create intentional-interference asserts rests centers "is [antitrust] claims." Merrell Dow Pharmaceuticals Thompson, 478 804, 813, 106 3229, 3234, 92 650 (1986). cases, again mostly establish defining "well-pleaded claims" discerning elements "necessary" "essential" them. rule, appropriately adapted " 'must appears statement bill declaration, unaided anything avoidance defenses thought defendant interpose.' Board, supra, U.S., 10, S.Ct., 2846 (quoting Taylor Anderson, 234 74, 75-76, 34 724, 58 1218 (1914)). Louisville Nashville Co. Mottley, 211 149, 29 42, 53 126 (1908). "even case." 14, 2848.3 Dow, 808, 3232. 14 "on [the laws] [plaintiff] seeks," 26, 2855 (footnote omitted), 26 29, 29. alternative unless theories. B 15 Framed terms, our straightforward. condemns "[e]very monopolize, attempt monopolize. thrust "embarked course described prevent engaging M-16." 10. specifies acts, relate prosecution letters sent existing customers. To identified amounted "willful acquisition maintenance [monopoly] distinguished growth development consequence superior product, acumen, historic accident." Grinnell Corp., 384 563, 570-571, 86 1698, 1704, 778 (1966). Both perceive violation," 1061; see Brief namely, made false assertions violating protected concludes, prima facie assume foregoing defense. But 1547. 2855, 29; Gully, 117, 99-100, singles (and several, So far attempted prove accusations trade-secret infringement authorized 9-10 ("Contrary permission extended violation anti-trust embarked upon M-16"). fact, apart truth falsity accusations. According (1) contained "copies inapplicable orders" "suggest[ed] orders prohibited recipients] with" petitioners; (2) "falsely stat[ed] 'Colt's right' data 'consistently upheld courts.' Similarly, designed "to contravene previously given"; "[p]ursued bad faith subjecting [petitioners] expense discovery procedures"; (3) enable urge them." 10-11. "reasons purposes" "may [they] see[k]" 19 Act, contract, combination ., conspiracy, restraint commerce illegal," allegation "virtually suppliers agreed supplying purchasing ITS, effect requiring doors longer transact business." 11. unfolded, agreement unreasonable purpose and, patents' infringe. Whether having nothing Equally prominent protect, Once again, appearance complaint's alternative, non-patent compels conclusion III 20 offers three arguments notwithstanding rule. derives policy; 15(b); third grounded persuasive. A. 21 correctly observes widespread exist[ed] law." H.R.Rep. 97-312, 23 (1981). correct (although clearly so) "by litigated," ex ante hypothetical assessment dispositive. 31. focus, 1338." (emphasis added). See, e.g., 41 (cases fall 'arise under' jurisdiction"). view clear intent, more authority read granting depend complaint. Pratt, 64. 22 suggests alternatively 15(b)4 deem action—"an 28. action, finds papers, plainly regardless merit. 1566 (Nichols, dissenting). circumstances, any, unsupported light parties' Fed.Rule Civ.Proc. 15(b). consent imputes points less suggesting one. 57-58. True, issues, "[b]asic subject lawsuit." 57. recognized moved "claim [patent] hardly heralded assertion Quillen Playtex, Inc., 789 1041, 1044 (CA4 C. Wright Miller, Practice 1493, 466 (1971). never intimated complaint; four times linked "liability Counts I II," Count 609 1174, 1185 F.Supp., 332. C 24 revisit thorough 1565 "As commonly defined, [of case] posits decides continue govern subsequent stages Arizona California, 460 605, 618, 1382, 1391, 75 318 (1983) (dictum). promotes finality efficiency judicial process "protecting agitation settled issues." 1B J. Moore, Lucas, T. Currier, Moore's ¶ 0.404[1], 118 (1984) (hereinafter Moore's). 25 decisions. Kori Wilco Marsh Buggies Draglines, 761 649, 657 Fed.), cert. denied, 474 902, 230, 88 229 (1985); Perkin-Elmer Computervision 732 888, 900-901 469 857, 105 187, 83 120 (1984). routinely courts. Hayman Cash Register Sarokin, 669 162, 164-170 (CA3 1982) (transfer 1406(a)); Skil Millers Falls 541 554, 558-559 (CA6) (alternative holding) 1404(a)), 429 1029, 97 653, 50 631 (1976); &Par; 0.404[4.-5], 0.404[8]. Cf. Hoffman Blaski, 363 335, 340-341, 9, 80 1084, 1088, 1254 (1960) (res judicata reconsider upset court). Indeed, law; feel free threaten send into vicious circle litigation. Hayman, 169; N.W. Transp. States, 574 926, 930 1978). 348-349, 1092 (Frankfurter, dissenting).5 lay flawed, reasons. First, explicate irrelevant, "decide[d] law"—which did—not whether, how well, explained decision. Second, "merely power." Messinger 225 436, 444, 739, 740, 1152 (1912) (Holmes, J.) circumstance, loathe absence extraordinary circumstances initial erroneous work manifest injustice." 8, (citation petition writ certiorari expose review. Panama Napier Shipping 166 280, 283-284, 572, 573-574, 1004 Just adherence insulate appellate review, appeals' Court's Messinger, 740; Hamilton-Brown Shoe Wolf Brothers 240 251, 257-259, 36 269, 271-272, 60 629 (1916). IV 27 disapprove 1559. "Courts confers." Sheldon Sill, How. 441, 449, 1147 (1850). Firestone Tire Rubber Risjord, 449 368, 379-380, 101 669, 676, 66 571 confers age-old Parties often spend years litigating learn efforts wasted exasperating wasteful concerned) helplessly aptly illustrate, K mart Cartier, 485 176, 950, 99 151 (1988); Hohri, 482 107 2246, 96 51 (1987). mean, every borderline inevitably culminate perpetual game ping-pong until intervenes resolve underlying dispute, (more likely) surrenders futility. affairs undermine public confidence judiciary, squander private resources, commit too calendar fact-specific disputes national importance. "Surely seemly system remedies regarding controverted Code encourage, discourage, transfer. 349, ----. Situations arise, course, erroneous." 8. heavy deterrent vacillation arguable issues," 124, reversals exceptional; rarely questions, definition, answers. Fogel Chestnutt, 668 100, 109 (CA2 1981) disregarded 'a conviction error' ") 459 828, 65, 74 (1982). While shield incorrect choose grant ----, obviate necessity marginal 30 remand instructions 31 It ordered. whom BLACKMUN joins, concurring. 33 seminal construing Cardozo wrote "[w]hat needed something common-sense accommodation kaleidoscopic characterizes treatment problems causation selective picks causes web lays ones aside." 117-118, (1936). agree write separately emphasize application Cardozo's dictum answer time asked. More specifically, asked trial different outset try passed Improvement 1982 vested arisen responding concerns about forum-shopping divergent views generated. Nonetheless, definition embrace decided question. Instead, laws.1 similar single, precise, all-embracing body "vast majority" come "grant covered Holmes' 'suit action.' vast majority action." 3232, (1986) express enforce suggestion recognize Accordingly, became confer arose claim.2 extent Part III-A abjure notion am thus complete rejecting "Congress' 'by litigated,' dispositive," ante, properly examining ascertaining fact litigated approach considerations determining types assessment, think intended precisely instances. Two simple examples illustrate point. 37 patentee file two-count seeking damages infringement, unquestionably If, pretrial convinced occurred, advance trial, certainly arise though review entered. Conversely, alleging add successful proving valid infringed unsuccessful recovery sustain initially invoking mentioned it, lie 38 amended, previous constructively conform proof, 15(b),3 goal ensuring go thwarted examination filed. unscrupulous manipulate timing amendments leaves open constructive amendment provide foundation 814—815,4 says actual suffice. respondent favor ground added amendment, perfectly sound, fails written inconsistent view, join opinion. invoked 1292(a)(1) (c)(1), together interlocutory "granting, continuing, modifying, refusing dissolving [an] injunctio[n]," 1292(a)(1), 1295," 1292(c)(1). interpretation 1338(a)'s determine jurisprudence inapposite. Since, delineates involving phrase (like 1331) "masks welter interrelation proper management system." 2846, 810, 3233, ("[D]eterminations require sensitive judgments power, system"). hand, makes defeat removal omitting plead complaint," 22, 2853 omitted); Federated Department Stores, Moitie, 452 394, 397, 2, 2424, 2427, 69 (1981); 408, 3, 2432-2433, (BRENNAN, dissenting), questions. part: "When tried treated respects pleadings. raise party time, judgment; amend affect result rigorously implicate transferee's Perpetual nonjurisdictional—delays, threatens deny, justice. cf. Potomac Passengers Assn. Chesapeake Ohio 171 U.S.App.D.C. 359, 363, 520 91, 95, (1975). Title whose "was 1338 title." "original states, 2173-2174, like issues. (1981) ("Cases Contrast, Coastal Marketing, England Petroleum 604 179 (2d Cir., 1979) [Temporary Emergency Economic Stabilization Act]"). important note complaint" helps ferret separation seems plain 112—which, all, describes application—a gaining federal-court rejected "artful pleading" doctrine. Skelly Oil Phillips 339 667, 673-674, 876, 879-880, 94 1194 (1950) ("To sanction suits declaratory because, artful pleading anticipates trend legislation Congress, disregard effective functioning distort limited procedural Declaratory Judgment Act"); (District found respondents "had avoid 'artful[ly]' casting 'essentially claims' claims"); Caterpillar Williams, 386, 2425, 2432, (1987) ("artful attempting justify facts complaint); 14A Wright, E. Cooper, 3722, pp. 266-276 (incorporation implied, standard, States"). "Rule 15. Amended Supplemental Pleadings. "(b) Amendments Conform Evidence. "We 'express consent' 15(b)."

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