976 F.2d 748

From: Subject: 976 F.2d 748 Date: Thu, 3 Jul 2008 20:05:14 -0500 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0000_01C8DD48.1B022B90" X-MimeOLE: Produced By Microsoft MimeOLE V6.00.2900.5512 This is a multi-part message in MIME format. ------=_NextPart_000_0000_01C8DD48.1B022B90 Content-Type: text/html; charset="utf-8" Content-Transfer-Encoding: quoted-printable Content-Location: http://bulk.resource.org/courts.gov/c/F2/976/976.F2d.748.91-1089.html =EF=BB=BF 976 F.2d 748

976 F.2d 748

NOTICE: Federal Circuit Local Rule 47.8(b) states = that opinions=20 and orders which are designated as not citable as precedent shall not be = employed or cited as precedent. This does not preclude assertion of = issues of=20 claim preclusion, issue preclusion, judicial estoppel, law of the case = or the=20 like based on a decision of the Court rendered in a nonprecedential = opinion or=20 order.
Harold S. HEMSTREET, Plaintiff-Appellant,
v.
BANCTEC, = INC.,=20 Defendant-Appellee.

No. 91-1089.

United States Court of Appeals, Federal Circuit.

Aug. 14, 1992.

Before RICH, PAULINE NEWMAN and LOURIE, Circuit = Judges.

DECISION

LOURIE, Circuit Judge.

1=20

Harold S. Hemstreet appeals the judgment of the United = States=20 District Court for the Northern District of Illinois, No. 89 C 5939 = (October 16,=20 1990), granting summary judgment in favor of Banctec, Inc. The court, = relying on=20 Hemstreet v. Computer Entry Systems Corp. ("CES I"), 741 F.Supp. 1308, = 16 USPQ2d=20 1204 (N.D.Ill.1990) and Hemstreet v. Lundy Electronics & Systems, = Inc., No.=20 89 C 5940 (N.D.Ill.1990), held that Hemstreet's patent infringement = claims were=20 barred by the doctrines of laches and equitable estoppel. We reverse the = order=20 granting summary judgment, vacate the judgment for Banctec, and=20 remand.

DISCUSSION

2=20

As the trial court noted in adopting the district = court opinions=20 in CES I and Lundy, this case is nearly identical factually to those = cases. In=20 CES I, we have reversed the grant of summary judgment and remanded. = Hemstreet v.=20 Computer Entry Sys. Corp. ("CES II"), No. 90-1436 (Fed.Cir. Aug. 12, = 1992). We=20 refer the trial court to that opinion.

3=20

Like the defendant in CES I and Lundy, Banctec = received a July=20 1, 1983 letter from Hemstreet's attorney alleging infringement, offering = to=20 negotiate a license, and advising it of ongoing litigation against = another=20 corporation.*=20 Banctec alleges economic prejudice and detrimental reliance based upon=20 assertions that Hemstreet failed to act during the years that Banctec = spent=20 millions of dollars building up its business, and that it has been = prejudiced=20 through the loss of documents and the death of witnesses. Banctec's = allegations=20 of unreasonable and inexcusable delay are based upon the same facts = discussed in=20 CES II.

1. Laches

4=20

The trial court "adopted" the district court opinions = in CES I=20 and Lundy, and held that Hemstreet's claims against Banctec likewise = were barred=20 by laches. The trial court stated that Hemstreet's delay of more than = six years=20 was presumptively unreasonable and inexcusable, without recognizing the=20 continuing burden of proof on Banctec to affirmatively prove = unreasonable or=20 inexcusable delay and prejudice resulting from that delay.

5=20

The court's analysis is inconsistent with our recent=20 clarification of the law of laches in A.C. Aukerman Co. v. R.L. Chaides=20 Construction Co., 960 F.2d 1020, 22 USPQ2d 1321 (Fed.Cir.1992) (in = banc), which=20 allows a plaintiff to "burst" a presumption of laches with the = introduction of=20 evidence sufficient to raise a genuine issue as to either delay or = prejudice.=20 Here, just as in the CES case, Hemstreet introduced evidence that the = delay was=20 attributable to his litigation with another company as well as a = re-examination=20 proceeding which was instigated some time after the 1983 notice letter. = This=20 evidence was more than sufficient to raise a genuine dispute as to = whether the=20 delay was excusable. The presumption was thus "burst."

6=20

Consistent with our holding in CES II, summary = judgment on the=20 laches issue is therefore reversed. The record before us was created = with a=20 different understanding of the requirements of the law. Thus, Banctec = should=20 have an opportunity to augment the record. If Banctec chooses to pursue = the=20 laches defense, it must prove both delay and prejudice in accordance = with=20 Aukerman and CES II.

2. Estoppel

7=20

The facts providing support for Banctec's equitable = estoppel=20 defense are virtually identical to those in the CES I case. As in CES = II,=20 summary judgment on the equitable estoppel issue is reversed. While = Banctec did=20 not prove to the trial court that misleading and prejudicial conduct by=20 Hemstreet occurred, we remand the matter to the trial court for such = further=20 proceedings on the issue of estoppel as may be appropriate, consistent = with CES=20 II and Aukerman.

COSTS

8=20

No costs.

*=20

Hemstreet also submitted evidence of his explicit announcement to=20 predecessors of Banctec that he intended to sue to enforce his patent = rights at=20 the termination of then existing litigation. Because of our disposition = here and=20 in CES II, we need not address this additional evidence

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