Federal Circuit Rejects Appeal Of Walker Process Claim

In Xitronix Corp. v. KLA-Tencor Corp., No. 2016-2746 (Fed. Cir. Feb. 9, 2018), the Federal Circuit considered whether it or a regional circuit had jurisdiction over an appeal of a case raising only Walker Process antitrust claims. The court held that, in view of the Supreme Court's decision in Gunn v. Minton, 568 U.S. 251 (2013), the Federal Circuit did not have jurisdiction and it transferred the case to the Fifth Circuit.

Background

Xitronix filed suit in the Western District of Texas asserting a Walker Process monopolization claim based on alleged fraudulent prosecution of a patent. Walker Process Equip., Inc. v. Food Machinery & Chem. Corp., 382 U.S. 172, 176-77 (1965). Unlike many cases raising such issues, the Walker Process claim was not raised as a counterclaim to a charge of patent infringement. Rather, it was the only claim raised in the case. After the district court dismissed the claim on summary judgment, the plaintiff appealed to the Federal Circuit.

The Federal Circuit sua sponte raised the question of its own jurisdiction and asked for supplemental briefing, which the parties provided prior to oral argument. However, those briefs did not address the Supreme Court's decision in Gunn, and the Federal Circuit asked for yet another round of supplemental briefs.

Decision

Prior to Gunn, the Federal Circuit had issued two decisions that the parties contended supported Federal Circuit jurisdiction in appeals from Walker Process claims. Nobelpharma AB v. Implant Innovations, Inc., 141 F.3d 1059, 1067-68 (Fed. Cir. 1998) and In re Ciprofloxacin Hydrochloride Antitrust Litigation, 544 F.3d 1323, 1330 n. 8 (Fed. Cir. 2008) ("Cipro"). The Federal Circuit disagreed that either was relevant. Nobelpharma dealt with whether Federal Circuit law applied to Walker Process claims, not which court had jurisdiction; and Cipro involved a transfer from another jurisdiction, so the court did not perform a full-blown jurisdictional analysis.

Regardless, the Federal Circuit determined that the Supreme Court's holding in Gunn was dispositive that a Walker Process claim did not "arise under" the patent laws and so did not fall within the scope of the Federal Circuit's jurisdiction. In Gunn, the Supreme Court considered whether a legal malpractice claim relating to the procurement of a patent arose under the patent laws. The Court held that it did not. Even though the state malpractice claim necessarily required the application of patent law and the...

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