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Seal-Flex, Inc. v. Athletic Track and Court Construction, Defendant/cross-Appellant
98 F.3d 1318
Fed. Cir.
1996
Check Treatment

*1 1996) (rel. (“Interfer- supra, § “ordinary and com according 29.60[6] to their tracts performance not ence with the contractor’s is Corp. accepted meaning,” Brunswick monly generally differing considered a site condi- (Fed.Cir. States, 334, 951 F.2d v. United tion.”). by govern- interference the While 1991), vantage point do so from the we also a access to work ment with contractor’s the prudent’ contractor.” of a ‘“reasonable may govern- breach of the site constitute a Majfei, at 917. a contrac 732 F.2d Such P.J. duty cooperate, government to ment’s long familiar with the tor would have been responsible third-party not actions such Differing standing limitation on Site Condi delay as labor strikes contractor’s existing when clause to conditions tions performance, specific absent contractual Moreover, we are contract was executed. Constr., provision. See McNamara Ltd. Therefore, by consistent precedent. bound States, United Ct.Cl. precedent, we hold that the Court of with our (1975). Olympus points Because to interpreting did not err Federal Claims provision no of the contract that im- would apply Differing Conditions clause to Site pose responsibility upon govern- such existing time of only to conditions at the ment, it that it is to has shown entitled contracting. equitable adjustment an for costs associated delays by caused the Textron strike. Having interpreted Differing Site apply only to conditions Conditions clause Olympus solely on Because relies its inter- executed, existing when the contract was we pretation Differing Site Conditions Clause, Olympus’s specific Olympus adopt, claims. which we do not we address need government’s remaining argu- address the equitable adjustment upon seeks an based ments. by delay caused the soil contamination. undisputed pipe, it is that the oil CONCLUSION contaminants, source of the was not sole May nearly Differing Conditions clause did open cut until ten weeks after Site Therefore, government not shift -to the the costs of the the contract was executed. delays associated with either the soil contam- Olympus soil was not contaminated when Accordingly, ination or the strike. the Court delay, by the contract. This caused executed holding of Federal Claims did not err physical an adverse condition which arose provided Olym- the clause no foundation for only performance began, after was not sub pus’s equita- claim that it was entitled to an ject Differing Site Conditions clause. adjustment, ble and we affirm its decision. entitled, Olympus Accordingly, was not un clause, Differing AFFIRMED. der the Site Conditions equitable adjustment delay for the caused by the soil contamination.

Olympus equitable also ad seeks

justment delay upon based caused undisputed It

Textron strike. SEAL-FLEX, INC., Plaintiff-Appellant, begin until strike did not several the contract weeks after was executed and Thus, proceed Olympus the notice to issued. AND ATHLETIC TRACK COURT CON- Differing is likewise not entitled under the STRUCTION, Defendant/Cross-Ap- adjust equitable Site Conditions clause to an pellant. delay ment for the caused the strike. Nos. 95-1160. temporal In addition to the limita Appeals, United States Court tion, principally on which we base our deci Federal Circuit. sion, Differing it is also clear that the Site Oct. 1996. applies only “physical” Conditions clause site, at the work not to actions of conditions deny

third-parties the contractor access McBride, generally

to the work site. See *2 Young, Young,

Thomas N. MacFarlane & Wood, P.C., MI, plaintiff- Troy, argued, for brief, appellant. him on the was Donna With Berry. L. Perry, Reising, Ethington, Bar-

Owen E. MI, argued, Perry, Troy, for defen- nard & brief, dant/cross-appellant. him on the With Richard Hoffman. W. RADER, NEWMAN, Before BRYSON, Judges. Circuit Opinion for court filed Circuit opinion, Judge Separate NEWMAN. concurring part concurring result, Judge filed Circuit BRYSON. NEWMAN, warranty Judge. gave an extended for the due Circuit PAULINE uncertainty general as to how the Seal-Flex, summary judg- appeals the Inc. perform under conditions of use track would District Court the United States ment of of Kansas weather. the extremes Michigan1 invalidat- District of the Eastern *3 4,474,833 Patents No. ing States Through United of 1981 and the fol- the summer (the (the 4,529,622 and No. ’622 patent) ’833 regularly lowing winter Maxfield visited the “Method for Construct- patent), both entitled samples He took of the track to Beloit site. assigned to Surface” and ing All-Weather enduring how it was the weather determine invalidation was based on The Seal-Flex. cycles and the of use the Beloit conditions 102(b). Ath- of 35 U.S.C. the on-sale bar Maxfield High School athletes. stated (ATCC) Construction letic Track and Court spring by the of 1982 he was satisfied request for cross-appeals the denial of its August performance of the track. On attorney fees. filed, patent application and 1982 his was duly patent. the ’833 The ’622 issued as summary judgment of We conclude continuation-in-part is a of the ’833 improperly granted. invalidity patent. 1 of the ’622 summa- Claim and the matter is re- judgment is reversed method: rizes the proceedings. The dis- for further manded attorney constructing af- of fees is 1. A method for an trict court’s denial comprising steps firmed. mat over a foundation of: BACKGROUND spreading asphaltic coating tack over surface; the foundation inventor, Maxfield, Marvin spreading layer partic- a first uniform of He inter- asphalt paving business. became coating; tack ulate rubber over the in structure of all-weather athletic ested track, experimented running and with vari- spreading asphaltic coating a second formulations, composition track their and rubber; ous layer over the first of Maxfield, in In 1979 method of installation. spreading layer par- uniform of second (also Paving Rit- association with Ritchie Co. asphaltic ticulate rubber over said second Track, “Ritchie”), all chie Tennis & herein coating; running Derby at an outdoor installed then, sequence, applying liquid in first Wichita, Derby High in Kansas. The School containing styrene and mixture butadiene required repairs installation extensive after preceding layers rubber in water winter; the first Maxfield called it “the Der- substantially quantity to coat all sufficient by High disaster.” School layers, particles rubber of said improving Maxfield continued to work on drying applied then air mixture un- said methods, and in the fall his formulations visible, substantially liquid til no of 1980he and Ritchie undertook to install an spreading succeeding then uniform Beloit, in High athletic track at Beloit School layer particulate uniformly of rubber over Kansas, using proce- a new formulation and layers; preceding developed light that Maxfield had in dure continuing sequential ap- the aforesaid repairs Derby. the failures and Maxfield plication styrene and water butadiene spread layers asphaltic had two emulsion mixture, drying spreading air of uni- for the Beloit track when the rubber layers approxi- form of rubber until the began to flake and chalk. This was mixture mat mate desired thickness for the weather, to the cold and construc- attributed achieved; and suspended Installa- tion was for the winter. sealing applying in March and com- a coat of material tion was resumed over layer particles. pleted May top Maxfield stated that he of rubber 1981. Seal-Flex, (E.D.Mich.1994). 1. Inc. v. Athletic Track and Court Con- struction, F.Supp. U.S.P.Q.2d 1676 judgment mercially The court held that feasible.” ATCC moved patented patented invalidity ground that method had been “[b’Jecause on the public use and had extensively developed had been at the time the offers sold, High made, on the Beloit based the court determines that been were charged Alternatively, sufficiently ATCC complete installation. invention was as to in- on sale based on cer- the invention was voke on-sale bar.” Seal-Flex states employee Roth- of Ritchie Joe standard, tain activities legal and that this was incorrect shortly completion of installation of after well on the correct standard before the the Beloit track granted. should not have been (one year August “critical date” date). filing patent’s ’883 before the DISCUSSION *4 use respect public to the asserted With Summary judgment may granted be when court denied sale at Beloit the district and question dispute, fact in no material is summary judgment, holding that “based on Inc., Liberty Lobby, 477 Anderson v. U.S. here, deter- presented the court the evidence 251-52, 242, 2505, 2511-12, 106 S.Ct. 91 question over that a factual remains mines (1986), it that L.Ed.2d 202 or when is shown high track school the sale of the to whether prevail can not on the nonmovant its version invalidating or an in Beloit was an event facts, rendering a trial thus futile. See ruling ap- experimental sale.” That Matsushita Elec. Industrial Co. v. Zenith pealed, appealable. and is not 587, 574, Corp., 475 106 Radio U.S. S.Ct. However, the district court held that (1986) (the 1348, 1356, pur 89 L.Ed.2d 538 accrued soon after the Beloit on-sale bar trial). clearly pose unnecessary is to avoid a installation, in 1981 Joe Rothwell when party moving summary judgment of Lo- the Beloit track to the coach showed identifying the burden of the evidence bears School, July person- gan High and 1981 to disputed that demonstrates the absence of a City Community College, nel of the Garden issue of fact and establishes that the material 23,1981. August date of all before the critical moving party judgment as a is entitled that Rothwell offered There was evidence Catrett, Corp. law. v. 477 matter of Celotex tracks Logan High a choice of three 2548, 91 106 S.Ct. U.S. including one “like Beloit.” Seal-Flex states (1986). L.Ed.2d 265 When the movant has at the time of Rothwell’s contacts burden, its initial the non-movant must met only a few these schools the Beloit respond evidence to show that with sufficient old, known days or weeks it was not that, dispute factual and there is a material satisfactorily perform it would under whether evidence, non-movant’s the movant on the use, and conditions of weather and actual judgment of law. not entitled to as matter complet- that an unconditional offer to sell 322-24, 106 at 2552-53. Id. at S.Ct. not authorized and not ed invention was argues -undisput- Thus made. Seal-Flex appellate the court will On review support accrual of the ed facts did not independently whether the stan determine critical date. on-sale bar before the grant dards for the met, viewing the evidence and Citing v. United have been UMC Electronics Co. (Fed.Cir.1987), States, favorably 647, USPQ2d drawing factual inferences 2 1465 816 F.2d Celotex, denied, 1025, 477 party opposing the motion. U.S. t. 484 U.S. 108 cer 2552-53; 323, (1988), Scripps 106 S.Ct. at Clinic 98 L.Ed.2d 761 the district S.Ct. Inc., Genentech, material whether the & Research Foundation court deemed it not 1571, USPQ2d 1005 undergoing testing 927 F.2d Beloit track was still (Fed.Cir.1991); evaluation, v. Northwestern Federal Circuit has ex Watkins “[t]he Assn., invention need not Ohio Tractor Pullers plicitly held that a claimed (6th Cir.1980). argues that on-sale Seal-Flex practice be reduced to to invoke the improperly disputed material facts were court observed that Max- bar.” The district summary judg adversely upon it concept,” found field’s invention “was not a mere ment, applied. “com- and that incorrect law was believed that it was Rothwell conflicting requiring prompt entry patent sys evidence con into There of the commercial cerning begun. the nature rela tem after sales has See En- tionship Inc., Maxfield and Ritchie and Corp. Eng’g, between virotech Westech concerning employees, 1571, 1574, 15 its whether USPQ2d F.2d employee (Fed.Cir.1990) was made Ritchie’s offer of sale (discussing public policies). Thus Maxfield’s authorization. For Rothwell with period the statute limits commercial discuss, the reasons we shall we conclude sale or offers of sale of an invention to one application that the district court erred its year, patent application before the must be of the law of the on-sale bar of 35 U.S.C. filed or be forever barred. 102(b), for if in fact the Beloit track re policy require embodied in does not quired under actual conditions of evaluation one-year period that the start to accrue on an weather and use order to determine yet invention that is not known work satisfactory for its in whether it would be satisfactorily pxxxpose. for its intended Pre purpose, tended then could not be held as a variety cedent illustrates a of factual situa potential matter of law that contacts with potential tions wherein contacts with custom one-year started the fixture customers bar completed ers before an invention was did period. during that evaluation Material fac peri not start accrual of the on-sale bar tual included whether such evaluation issues See, USA, e.g., od. Continental Can Co. Inc. *5 reasonably necessary and was whether the Co., 1264, 1269, v. Monsanto 948 F.2d 20 period was in of evaluation reasonable view (Fed.Cir.1991) USPQ2d (joint 1750 de invention; of nature of the if these facts velopment supplier between customer and Seal-Flex, were resolved in favor of then date); Shatterproof did not start the critical summary judgment adverse to Seal-Flex was Co., Corp. Libbey-Owens Glass Ford 758 properly granted. not 613, 622-23, USPQ F.2d 225 (Fed.Cir.1985) (solicitation of for customers The district court declined to con undergoing develop an invention technical patented sider these factors because “the event). ment was not an In on-sale Manville extensively developed.” method had been 544, 551, Sys., Sales v. Paramount However, develop much the issue is not how USPQ2d (Fed.Cir.1990), 16 1592 done, already ment had been but whether the performance court held that in when an out complete in invention was fact and was necessary door pur environment was purpose. known to work for its intended If invention, pose testing of an then to deter yet patented was not known whether the durability mine the invention’s under outdoor produce satisfactory a method would all- trigger public conditions did not use bar. surface, appropriateness weather of de City Elizabeth v. American Nicholson Cf. of termining durability the track’s must be con Co., Pavement 97 U.S. 24 L.Ed. 1000 deciding completed in sidered whether a in (1877) (testing public in under actual condi vention had for It been offered sale. was required of tions use was to establish the hold, law, incorrect to as a matter of that the efficacy invention, of the and was not an on-sale bar accrued because “the invention use). invalidating public sufficiently complete,” although it had yet been determined whether the method implementa The law of anis produce did in fact an all-weather surface. policy tion of the if a is to be provides of Section 102 Title 35 that a sought applied it must be for within a reason person is entitled to a unless— completed able after a time invention has (b) public ... in the invention was use or placed in recog been commerce. It is well country, year on than sale this more one that an development nized inventor’s of new prior application to the date of the may technology overlap with the ascertain patent in the United States. interest; indeed, ment of market market de 102(b) represents of velopment accompanies on-sale bar often technical devel policies allowing opment, particularly balance the inven- phases the latter tor a completion reasonable amount of time to ascertain of an in invention. Whether an invention, complete reasonably commercial value of an requires while invention eval-

1323 track does not become a of use is a imental athletic actual conditions nation under completed steps See Manville invention because taken to be considered. circumstance USPQ2d at Sales, potential 16 to interest customers. The stan- F.2d (“In by whether “sufficiently complete,” applied order determine dard use, public we court, unworkable, or in was on sale for the in- the district totality of the circum- how the know, must consider until informed ventor will underlying policies comports with the stances judge, stage experimental at what his method bars.”). public use the on sale became, judicial insight based on hind- sufficiently sight, complete to start the time Vann, Inc., Tools, Inc. Geo In Baker Oil patentability. bar to USPQ2d F.2d (Fed.Cir.1987), various the court summarized not mean that an inven This does to the determi- may be relevant criteria that continuing monitoring of his invention tor’s been an invention had nation of whether peri stay of the bar will the commencement intend- to work for its completed and shown long ongoing. as this od for as public possible of a purpose at the time ed relevant, always in an it is entire include These criteria or sale event. use on determination, ty-of-the-eireumstances or of whether tests evaluations the facts had indeed been whether the invention reasonably needed conducted were that were purpose shown to work its intended invention; efficacy of the to demonstrate reasonably acting whether inventor period in relation of the evaluation length invention. continuing to evaluate the invention; whether test- to the nature that were made with nature of the contacts performed; whether systematically ing was during period of potential or on behalf of customers de was done the evaluation inventor; kept; velopment are also relevant whether records were of the invention *6 received; other payment totality was and the circumstances evaluation whether to the of the nature of that illuminate precedent circumstances our mandates. that critical activity engaged before the Can, that he did Maxfield averred not 948 F.2d at also Continental date. See as installed 1269, USPQ2d (summarizing crite- his new track at at 1750 know whether 20 considered). satisfactorily until policy perform the on- The of Beloit would ria to be period prolonged subjected freeze and not tolerate a was to winter sale bar does is commer- the inventor that it was cycle. of “evaluation” while averred neces thaw He applying the invention. In cially exploiting track in sary the Beloit actual to evaluate totality of circum- of the the standard if it of in order to determine conditions use 2 pur- necessary it is to consider stances as intended and would not would function testing and for the pose of and the need deteriorate ex crack or otherwise period. evaluation He averred of weather. that tremes Kansas techniques, that layering and he he used new days or period here at is the few issue repair perform considerable even dur had to completion of the installation weeks between wife, Maxfield’s ing of 1981. the summer and the High 1981 at Beloit installation, hand-done worked on the who City Logan and Garden with the contacts In of effect. view testified to similar Although declined the district court coaches. of uncertainty as to the status inventor’s issue of grant on the track, poten contacts with Beloit Rothwell’s “experi- Beloit track was itself whether the laying days of the of tial customers within mental,” summary judg- grant did the court held on can not be the Beloit track “sufficiently was that the invention ment undisputed of law or judgment, as a matter when a invoke the on-sale bar” complete to fact, purposes for of event to be on-sale is an Beloit” was offered. This track “like States, 102(b). Inc. v. United distinction, Gould exper- See inappropriate line (1992), but it remains the law this totality Commerce circum- of the of the 2. The standard unnecessarily changed by or the court as unless statute has been criticized circuit stances see, Advisory e.g., on Pat- vague, Commission en banc. Secretary Report A ent Law Reform: 1324 USPQ

217 198 Ct.Cl. decreased. The ’622 states column (1978) (period experimental 1 pertains use lines 8-10 that invention “[t]his particularly, until after the inventor “conducts surfaces and more to an continues running all-weather surface to be used for needed to convince himself that tests tracks,” seq. performing at column line 67 et capable its intend- invention environment.”) object present “[s]till another inven- purpose in ed its intended provide process tion is to wherein the presented ATCC no evidence ne susceptibility of the materials to the deleteri- gating the need to evaluate the track under sunlight, ous effects of moisture and weath- position actual conditions of use. ATCC’s ering substantially are decreased.” Claim 18 simply marketing that Rothwell’s activi of the ’833 refers to “weather and ties sufficed to start the on-sale bar as a degradation.” ultraviolet law, matter of relevant discussed, As we have the district court reasonably whether Maxfield believed that applied holding an incorrect standard in durability his track needed evaluation of its because Maxfield’s track had been extensive- under actual conditions. As we have dis ly developed, marketing Rothwell’s efforts cussed, is not a correct statement of period started the bar as a matter of law. general rule is that the law. The on-sale bar The court’s reliance on UMC Electronics for completed to accrue when a invention starts proposition inapt, this for that case did Tools, is offered for sale. Baker Oil not turn on whether the had been 1563, USPQ2d F.2d at at 1213-15. Facts “extensively developed” at the time it was underlying proved bar must the on-sale be sale, offered for but on whether it was known convincing clear and evidence. Id. at that the invention would work its intend- 1563, USPQ2d at 1213. The trier of fact purpose testing ed without further or evalua- must determine whether invention was period tion. When an evaluation is reason- completed and known to work for its intend ably needed to determine if the invention will purpose, ed or whether the inventor was purpose, serve its intended bar continuing develop and evaluate the inven does not start to accrue while such determi- tion; merely whether the inventor was ex issue, being nation is made. This is a factual market, ploring or had made an uncondi adversely could be found to the non- completed tional offer to sell invention. summary judgment. movant on issue, these material facts are at sum When *7 not, course, We do hold that an inventor mary disposition negated. example, For may avoid the on-sale engaging bar while Corp., A.B. v. RTE Chance Co. activity, simply by continuing commercial to 1307, 1311-12, USPQ2d improvements make in the commercialized (Fed.Cir.1988), genuine there was a factual totality invention. The of the circumstances dispute as to whether the invention had been standard does not accommodate behavior purpose, shown its to work for intended thus policies that underlying contravenes the the negating summary judgment. Conversely, in law. such abuse was not here Inc., Sinskey Ophthalmias, v. Pharmacia only days shown. There were a few between (Fed. USPQ2d F.2d completion laying the of the Beloit Cir.1992) upheld grant the court the of sum High track School and the demonstration and mary judgment expe when the inventor had Logan High offer to disput- School. It is not repeated satisfactory performance rienced ed on this record that there had not been ophthalmic procedure and did not view the as time to determine whether the track would experimental. actually perform intended, as free of the patented invention is directed to an problems experiences Derby with the track. “all-weather surface.” The titles of both response In summary to motion ATCC’s for patents the ’833 and ’622 are “Method for judgment, Seal-Flex met its burden show- Constructing All-Weather Surface.” The ing dispute that material facts were in specifications patents among of both include requirements that the were not objects making the of the invention the of an summary met as a judg- matter of law. The reversed, susceptibility outdoor track to whose the del- ment is and the cause is remanded substantially eterious effects of proceedings. weather is for further for which a is later the invention FEES ATTORNEY primarily sought, or offer to sell a sale attorney pursuant fees for moved ATCC and that purposes occurs for commercial denied court The district 285. 35 U.S.C. year application the before more than one rea- motion, “plaintiff had a stating that the unpatentable. Accord- the invention renders con- lawsuit and filing the for basis sonable at trial shows that ingly, if the evidence plaintiff did argument, trary to defendant’s representa- with communications Rothwell’s in bad faith.” the case prosecute bring or Logan High constituted tives of in the of discretion no abuse We discern purely a commercial offer to make authorized ruling, which is affirmed. district court’s embodying patented product a the sale of to Seal-Flex. Costs (which method, oc- those communications REMANDED; AT- AND REVERSED year the curred more than a before DENIED. FEES TORNEY filed) trigger the on- were would applications patents in suit. sale bar and invalidate concurring in BRYSON, Judge, Circuit able to sell his An inventor should not be concurring the result. part and purposes, but avoid commercial summary judg- agree the court I with conducting by separately the on-sale bar granted in this have been should not ment case, I view the on his invention. As tests analysis case, the court’s disagree I with but irrelevant to the status is therefore I therefore concur respect. in one Logan that Maxfield was continu- transaction regard to the result performance of the Seal- ing to evaluate issue. If Beloit track. process Flex defendant’s motion granting In an offer Logan constituted transaction court relied judgment, product the district sale of made make commercial product later-patented process, offers to sell a the on-sale purported by two bar on “Logan patented process: if Maxfield was triggered even made should be process City concurrently conducting offer.” As tests on his “Garden offer” and the transaction, City facility. the evidence at another the Garden actual there was an does establish pat- made a track

offer to construct offer, purported Logan process.

ented

however, question. The presents closer supports district undisputed evidence TRW, INC., Appellant, employee, a Ritchie court’s conclusion Rothwell, proposal to the Lo- sent a Joseph coach, offering to gan High School Secretary Widnall, E. Sheila Beloit,” by “just which a track like construct Force, Appellant, the Air by the a track constructed Rothwell meant *8 process that was used same Seal-Flex CORP., Appellee. Nonetheless, UNISYS the evi- High School. Beloit Logan purported respect to the dence with CORP., Appellant, UNISYS clearly that Rothwell establish offer does to sell the to make an offer was authorized WIDNALL, Secretary Sheila E. Logan pro- at the time the process claimed Force, Appellee. the Air reason, agree I For that posal made. judgment with the court and 95-1416. Nos. granted in this ease. have been should not Appeals, Court United States the le- Although court has articulated this Circuit. Federal of 35 for the “on-sale bar” gal standard 25, 1996. Oct. ways, in different it seems U.S.C. language policies me that following captured by the

statute are best question embodies if or offer

rule: the sale

Case Details

Case Name: Seal-Flex, Inc. v. Athletic Track and Court Construction, Defendant/cross-Appellant
Court Name: Court of Appeals for the Federal Circuit
Date Published: Oct 24, 1996
Citation: 98 F.3d 1318
Docket Number: 95-1083, 95-1160
Court Abbreviation: Fed. Cir.
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