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Supreme Court of the United States - 568 U.S. 251
Contributed by Pilea
A hypothetical question of patent law does not qualify a case to be heard in federal court on the basis of federal question subject matter jurisdiction.
Issue
Does Minton's case mandate federal review?
Conclusion
No. Federal courts do not have exclusive jurisdiction over cases in which the patent issue is not the primary issue in the case. Minton failed to show that the federal issue in this case carried the necessary significance.
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Rule
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Analysis
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Facts
- In 1995, Minton leased some fintech (TEXCEN) he had developed to a securities brokerage
- In 1996, he applied for a patent on a system based substantially on TEXCEN
- In 2000, the US Patent and Trademark Office issued a patent.
- Minton then sued NASD and NASDAQ in Federal District Court for patent infringement, and he was represented by Gunn.
- NASD and NASDAQ moved for summary judgement on the basis that the patent was invalid under "on sale" bar (the "on sale" bar invalidates a patent if the patented invention was on sale in the US more than a year prior to the date of the application, which Minton's 1995 lease satisfies).
- Minot argued that his patented system was different from the original TEXCEN.
- The district court granted a summary judgement against Minton.
- Minton filed a motion for reconsideration in district court, and argued that the lease agreement fell under an "experimental use" exception to the on sale bar as part of ongoing testing.
- The district court denied Minton's motion for reconsideration because the experimental-use argument was waived when it wasn't brought up in the lower court.
- Minton appealed to US Court of Appeals for Federal Circuit, which affirmed against Minton.
- Minton then brought a malpractice suit against his attorney, Gunn, in Texas state court, on the basis that his attorneys' failure to raise the experimental-use argument had caused him to lose his patent.
- The attorneys argued that they would have failed even if they had raised the experimental use argument in a timely fashion.
- The TX state court ruled against Minton with summary judgement.
- Minton appealed to TX Court of Appeals, and raised the new argument that because the malpractice claim was based on patent law, it "arises under" federal patent law, and so TX lacked subject matter jurisdiction, meaning his judgment should be vacated, and the case allowed to start over in Federal District Court.
- TX Court of Appeals ruled against Minton
- TX Supreme Court reversed in favor of Minton
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Holding
- Hey! This is the holding for Pennoyer v. Neff. It probably isn't the holding for the brief you're looking at. Join LSD+ for full access.
- A named property within the court's jurisdiction is attached to satisfy an unrelated claim, despite the owner of said property being a non-resident of the state.
- A named property within the court's jurisdiction is attached as the basis for the suit (e.g., to quiet title), despite the owner of said property being a non-resident of the state.
- An individual is sued who is a resident of the state, or who has been served with process while physically located within the state.
- jurisdiction - Neff is neither a resident, nor was served while within the state. Service by publication may be valid for an
- proceeding, where the owner would be made aware of the suit due to their property being seized, but not for
- jurisdiction - the action was on the basis of a suit to receive payment owed, and did not relate directly to a property within the state.
- jurisdiction, as the Oregon property was not attached to the initial suit, but rather was added in after the suit happened - note that Neff did not even purchase the property until after the suit had concluded.
- Accordingly, the Oregon court did not have jurisdiction over the initial suit between Neff and his lawyer.
- Enforcement of a judgment without jurisdiction denies due process!
- Additionally, although judgments rendered by other states are entitled to full faith and credit, if that state did not have jurisdiction to render the judgment, it loses such entitlement.
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Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. . Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum. Excepteur sint occaecat cupidatat non proident,
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