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In Re Baxter International, Inc.
698 F.3d 1349
Fed. Cir.
2012
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Background

  • Concurrence by Judge O’Malley joins the panel majority and addresses denial of rehearing en banc.
  • Petition for rehearing en banc challenges the panel’s treatment of res judicata and the effect of PTO reexamination on final judgments.
  • Majority holds that prior final court judgments on invalidity do not bar later PTO reexamination, but that reexamination cannot alter the binding effect of the prior judgment.
  • O’Malley states this concurrence rejects the dissent’s view that the panel endorses administrative nullification of a final judicial decision.
  • The concurrence emphasizes res judicata governs continuing relations of the parties and the binding effect of final judgments.
  • Dissent by Judge Newman argues reexamination after a final court ruling undermines finality and constitutional separation of powers.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Can inter partes reexamination overturn a final court judgment? Fresenius contends reexamination can override prior court findings. Baxter/PTO maintains reexamination is permissible and does not disturb final judgments. Res judicata governs; reexamination cannot alter final judgments' binding effect.

Key Cases Cited

  • San Remo Hotel, L.P. v. City & Cnty. of S.F., 545 U.S. 323 (U.S. 2005) (final judgment precludes relitigation of issues)
  • Reed v. Allen, 286 U.S. 191 (Supreme Court 1932) (res judicata doctrine; end to litigation)
  • Foster v. Hallco Mfg. Co., Inc., 947 F.2d 469 (Fed.Cir.1991) (res judicata embodying public policy of finality)
  • Marrese v. American Academy of Orthopaedic Surgeons, 470 U.S. 373 (U.S. 1985) (full and fair opportunity to litigate precludes relitigating issues)
  • Plaut v. Spendthrift Farm, Inc., 514 U.S. 211 (U.S. 1995) (Congress cannot vest review of Article III decisions in non-Article III bodies)
  • Chicago & S. Air Lines, Inc. v. Waterman S.S. Corp., 333 U.S. 103 (U.S. 1948) (judicial accountability; separation of powers)
  • Federated, Dep’t Stores, Inc. v. Moitie, 452 U.S. 394 (U.S. 1981) (final judgment precludes relitigation of issues)
  • Gordon v. United States, 117 U.S. 697 (U.S. 1886) (final judgments are final and conclusive)
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Case Details

Case Name: In Re Baxter International, Inc.
Court Name: Court of Appeals for the Federal Circuit
Date Published: Oct 26, 2012
Citation: 698 F.3d 1349
Docket Number: 2011-1073
Court Abbreviation: Fed. Cir.