Natta v. Hogan
Natta v. Hogan
Opinion of the Court
The issues here presented relate to discovery and production of documents under Rule 34, F.R.Civ.P., in connection with interference proceedings in the Patent Office. The district court granted limited discovery and the contesting groups have each appealed.
On one side are Natta, Pino, and Mazzanti, and their assignee Montecatini. This group will be referred to as Montecatini. On the other, are Hogan, Banks, and their assignee Phillips Petroleum Company. This group will be referred to as Phillips.
The interference proceedings present the question of which party has the earliest patent date. After receiving an Italian patent, Montecatini applied for a patent in the United States. By virtue of 35 U.S.C. §§ 104 and 119, it may not establish a date earlier than June 8, 1954, the date of its Italian patent application. Three groups contest the priority of the Montecatini claim. In the order of their assigned seniority they are E. I. duPont de Nemours & Co., Standard Oil Company of Indiana, and Phillips, all of whom hold under assignments and, under Patent Office practice, are referred to as junior parties. The junior parties have the burden of establishing by a preponderance of the evidence a date before that of
The first question is the appeal-ability of the district court order. Because that order pleases none of the contestants, the parties are in agreement that it is appealable. The rule that jurisdiction is not conferred by consent makes it necessary that we make our own determination. The question is whether the order of the district court, styled “Final Order to Produce,” is a final judgment from which an appeal will lie under 28 U.S.C. § 1291.
An order for the production of documents is not ordinarily appealable.
Phillips attacks the jurisdiction of the district court to require the production of documents. The claimed statutory basis for jurisdiction is 35 U.S.C. § 24 which provides:
“The clerk of any United States court for the district wherein testimony is to be taken for use in any contested case in the Patent Office, shall, upon the application of any party thereto, issue a subpoena for any witness residing or being within such*690 district, commanding him to appear and testify before an officer in such district authorized to take depositions and affidavits, at the time and place stated in the subpoena. The provisions of the Federal Rules of Civil Procedure relating to the attendance of witnesses and to the production of documents and things shall apply to contested cases in the Patent Office.”
The argument that Rule 34 proceedings are not within the sweep of the statute does not impress us. We believe that the intent of Congress was to make available to parties to contested cases in the Patent Office the provisions of Rule 34. The statute refers to both the attendance of witnesses and the production of documents. It does not limit discovery to that permissible under Rule 45. The courts of appeals which have considered the question are in agreement that Rule 34 proceedings are within the compass of § 24.
Phillips says that § 24 contemplates initiation of discovery proceedings only by the issuance of a subpoena. None was issued here. Montecatini served notice of its Rule 34 motion on the clerk of an attorney for Phillips. Later the court clerk issued a summons which was served on an official of Phillips. The Third and Seventh Circuit Natta decisions upheld the initiation of proceedings by a Rule 34 motion but did not reach the jurisdictional question which Phillips raises.
The first sentence of § 24 authorizes the initiation of the ancillary court proceedings by the issuance of a subpoena. The second sentence extends the application of the civil rules pertaining to the production of documents to Patent Office proceedings. The generality of the second sentence is not restricted by the particularity of the first. The contention that jurisdiction is not obtained until a subpoena is issued and that only then may a Rule 34 motion be presented glorifies form over substance. Such formalistic procedure performs no useful purpose.
Rule 34 provides that upon motion “the court in which an action is pending” may order “any party” to produce documents. Phillips says that here no action is pending in the district court and, hence, Rule 34 may not be invoked. Reliance is placed on Okun v. Kastner, D.R.I., 1 F.R.D. 599. In that case an application was made for the production of a document sought in connection with a Patent Office interference proceeding and the court denied relief on the ground that no action was pending. The case was decided before the 1952 amendment to § 24 which provided that the federal civil rules pertaining to production of documents apply to contested cases in the Patent Office. Whatever may have been the law before the amendment, we believe that the Rule 34 requirement of a “pending” action is satisfied by the pendency of the interference proceedings. The judicial relief sought is ancillary to the administrative proceedings and is a continuation of the controversy pending before the agency.
Phillips says further that Rule 34 applies only to production by a party to an action and that it is not a party. Phillips is not a party to the interference proceedings but it admits that it is the assignee of Hogan and Banks who are applicants before the Patent Office. As such, it is the real party in interest and may not hide behind its assignors. The discovery procedures may not be frustrated by the submission of the patent applications in the names of nominal parties. In the situation presented, Phillips comes within the purview of the phrase “any party.”
Additionally, Phillips complains that no action was commenced by the filing of a complaint under Rule 4, F.R.Civ.P., and that there was no constitutionally adequate service of process. In its Natta decision
The remaining issues relate to the duty of Phillips to produce specific documents. The parties stipulated as to the general character of documents requested. Phillips came forward with 68 documents which were inspected by the court in camera. Phillips also submitted an affidavit of one of its counsel identifying Phillips’ personnel who authored or received the documents. As later noted, the trial court ruled on the individual documents. These were then sealed and transmitted to this court. We have examined the documents.
The first objection of Phillips is that a group of the documents are privileged communications because of the attorney-client relationship. Monteeatini argues that the privilege does not exist for a variety of reasons.
Monteeatini says that there is no justification for the claim of privilege because of the “full disclosure” provisions of the patent laws.
The decisions relied on by Monteeatini are not to the contrary. In American Cyanamid Co. v. Hercules Powder Co., D.Del., 211 F.Supp. 85, and Zenith Radio Corp. v. Radio Corp. of America, D.Del., 121 F.Supp. 792, both discovery proceedings in connection with patent applica
The record contains no waiver of the privilege by Phillips. It undoubtedly gave information to its attorneys so that they could act on it in the preparation of papers used in the patent proceedings. The situation is like that where a client gives general information to his lawyer so that the lawyer may prepare a complaint in any ordinary civil action. The fact that some of the information is thus publicly disclosed does not waive the privilege. The case at bar is different from that considered in Wilcoxon v. United States, 10 Cir., 231 F.2d 384, 385-386, cert. denied 351 U.S. 943, 76 S.Ct. 834, 100 L.Ed. 1469. That case related to the transmission of certain information with the intent that it be made public. No such intent appears here.
We find nothing in the record which intimates that Phillips channeled any papers into the hands of its lawyers for custodial purposes to avoid disclosure.
Another difficult question is what officers and employees of Phillips are in a position to speak for the company within the meaning of the word “client.” We believe that the test is whether the person has the authority to control, or substantially participate in, a decision regarding action to be taken on the advice of a lawyer, or is an authorized member of a group that has such power.
Some of the documents are communications from a lawyer to a member of the Phillips control group. Montecatini says that these are not within the privilege doctrine because it applies to communications to, not from, an attorney. Montecatini’s reliance on 8 Wigmore, Evidence § 2292 (McNaughton Rev. 1961) p. 554, is misplaced. Reference is there made to communications “by the client.” In the discussion which follows, Wigmore makes it clear that the reference is to differentiate between communications made by the client and those made by a third person. With reference to communications by the attorney to the client, Wigmore says (Id. § 2320, p. 628): “That the attorney’s communications to the client are also within the privilege was always assumed
Phillips asserted the attorney-client privilege in connection with documents numbered one through thirteen. The trial judge examined them in camera and ruled on each. We adopt the same procedure. As to documents 4, 6, 11, and 13 the claim of privilege was denied and Phillips now does not press its objection.
The trial court held documents 2, 9, 10, and 12 to be privileged and Monteeatini asserts error. Each of these is a letter from an attorney to a member of the Phillips’ control group. Each gives advice and seeks a management decision. In our opinion they are privileged.
Phillips objects to the denial of privilege to documents 1, 3, 5, 7, and 8. These are variously entitled “Memorandum,” “Recommendation Sheet,” and “Comments.” We find 3, 5, and 7 to be in essence statements of opinion by executives. One and 8 are addressed generally to the “Patent Division” which is composed of both members and non-members of the control group. Documents available to persons who are neither lawyers nor control group members are not privileged. In regard to each group we believe that the trial court correctly applied the principles relating to the claim of privilege.
Phillips says that documents 14 through 67 are the work product of its attorneys and not subject to discovery. Hickman v. Taylor, 329 U.S. 495, 67 S.Ct. 385, 91 L.Ed. 451, announced the principle that discovery does not extend to require production of material assembled by an attorney in preparation for impending litigation. Tile principal limitation is that where the work product contains evidence essential to the preparation of an adversary’s case and not otherwise available, production will be required in some circumstances. Id. at 329 U.S. 511, 67 S.Ct. 385, 91 L.Ed. 451. The trial court held that the documents were not within the work product doctrine because they were not prepared “for possible litigation after a claim was recognized as having arisen.”
To support the reasoning of the trial court, Monteeatini relies on Zenith Radio Corp. v. Radio Corp. of America, D.Del., 121 F.Supp. 792, 795, where it is said: “Seldom, if ever, are patent department employees engaged in actual preparation for a trial of the required type.” This may be true but here some of the documents specifically refer to the interference proceedings. Nothing in Hickman v. Taylor suggests that the work product rule is limited to preparation for proceedings in a court of record. The rationale for the work product doctrine is the prevention of unnecessary interference with the work of an attorney. An attorney’s work in the patent law field should be as much his own as it is in other areas of the law. The work product claim cannot be brushed aside on the theory that the documents were not prepared for use in litigation.
We shall not prolong this opinion by any lengthy discussion of contested documents. Many relate to tests and experiments. Phillips has a duty to disclose to the Patent Office all facts relating to the possible equities of the patent application.
Our only trouble is with documents 16, 17, 18, and 20. These are handwritten notes. Such materials prepared by an attorney during his consideration of a legal problem are within
The order for production is affirmed for all documents except 17 which need not be produced. The costs will be equally divided between the parties.
. Paramount Film Distributing Corp. v. Civic Center Theatre, Inc., 10 Cir., 333 F.2d 358, 361.
. See also United States v. Fried, 2 Cir., 386 F.2d 691, where it was held that an order denying a motion to quash an information subpoena in an Internal Revenue matter was not appealable.
. Perlman v. United States, 247 U.S. 7, 13, 38 S.Ct. 417, 62 L.Ed. 950.
. See Covey Oil Co. v. Continental Oil Co., 10 Cir., 340 F.2d 993, 996-997.
. In re Natta, 3 Cir., 388 F.2d 215; Natta v. Zletz, 7 Cir., 379 F.2d 615, 618; and Gladrow v. Weisz, 5 Cir., 354 F.2d 464, 468.
. See Gladrow v. Weisz, 5 Cir., 354 F.2d 464, 468, and Hickman v. Taylor, 329 U.S. 495, 505-506, 67 S.Ct. 385, 91 L.Ed. 451.
. See Rumsey v. George E. Failing Co., 10 Cir., 333 F.2d 960, 962; and 2 Moore’s Federal Practice, 2d Ed., 1967 Supp. ¶ 5.06, p. 40.
. Natta v. Zletz, 7 Cir., 379 F.2d 615, 618.
. In re Natta, 3 Cir., 388 F.2d 215.
. See Cudahy Packing Co. v. National Labor Relations Board, 10 Cir., 117 F.2d 692, 694.
. See Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306, 314, 70 S.Ct. 652, 94 L.Ed. 865.
. See 35 U.S.C. § 112, as amended, and Scott Paper Co. v. Marcalus Mfg. Co., 326 U.S. 249, 255, 66 S.Ct. 101, 90 L.Ed. 47.
. Radiant Burners, Inc., v. American Gas Ass’n, 7 Cir., 320 F.2d 314, 322, cert. denied 375 U.S. 929, 84 S.Ct. 330, 11 L.Ed.2d 262.
. Id. 320 F.2d at 318.
. See Colton v. United States, 2 Cir., 306 F.2d 633, cert. denied 371 U.S. 951, 83 S.Ct. 505, 9 L.Ed.2d 499, an income tax prosecution where the lawyers made a blanket refusal to produce anything with relation to the income tax returns of the client.
. In United States v. United Shoe Machinery Corp., D.Mass., 89 F.Supp. 357, 360, the distinction between the two groups was stated thus: “The type of service performed by house counsel is substantially like that performed by many members of the large urban law firms. The distinction is chiefly that the house counsel gives advice to one regular client, the outside counsel to several regular clients.”
. City of Philadelphia v. Westinghouse Electric Corp., E.D.Pa., 210 F.Supp. 483, 485; American Cyanamid Co. v. Hercules Powder Co., D.Del., 211 F.Supp. 85, 88.
. See also 8 in 1 Pet Products, Inc. v. Swift & Co., S.D.N.Y., 218 F.Supp. 253, and cases there cited.
. Precision Instrument Mfg. Co. v. Automotive Maintenance Machinery Co., 324 U.S. 806, 818, 65 S.Ct. 993, 89 L.Ed. 1381.
. Hickman v. Taylor, 329 U.S. 495, 511, 67 S.Ct. 385, 91 L.Ed. 451.
Reference
- Full Case Name
- Giulio NATTA, Piero Pino, Giorgia Mazzanti and Montecatini Societa Generale Per L'Industria Mineraria e Chimica (Now Montecatini Edison, S.p.a.) v. John Paul HOGAN, Robert L. Banks and Phillips Petroleum Company, Appellees John Paul HOGAN, Robert L. Banks and Phillips Petroleum Company v. Giulio NATTA, Piero Pino, Giorgia Mazzanti and Montecatini Societa Generale Per L'Industria Mineraria e Chimica (Now Montecatini Edison, S.p.a.)
- Cited By
- 126 cases
- Status
- Published