HILLMAN, District Judge.
This case concerns plaintiff's state law-based legal malpractice, negligence and breach of contract claims against defendants for their alleged failure to properly prosecute plaintiff's patent applications in Japan and the United States. Defendants Gary D. Colby and Duane Morris LLP removed plaintiff's case to this Court pursuant to 28 U.S.C. §§ 1331, 1338 and 1441, contending that plaintiff's claims arise under the federal patent laws. Presently before the Court is plaintiff's motion for remand. Defendants have opposed plaintiff's motion. For the reasons expressed below, plaintiff's motion will be granted.
On September 29, 2009, plaintiff, Genelink Biosciences, Inc.
In its complaint, plaintiff asserts three claims based on New Jersey state law: (1) legal malpractice/negligence; (2) negligent misrepresentation; and (3) breach of contract. Defendants Colby and Duane Morris removed plaintiff's case to this Court on the basis that in order to resolve plaintiff's state law claims, federal patent law must be considered. Because federal law, particularly patent law which has its exclusive province in the federal courts, arises on the face of plaintiff's complaint, defendants claim that jurisdiction here is proper under federal question jurisdiction. Plaintiff counters that federal law is not implicated by its claims, and therefore this Court lacks jurisdiction to hear its case.
Removal of a case from state to federal court is governed by 28 U.S.C. § 1441. Section 1441 is to be strictly construed against removal, so that the Congressional intent to restrict federal jurisdiction is honored. Samuel-Bassett v. KIA Motors America, Inc., 357 F.3d 392, 396 (3d Cir.2004) (citing Boyer v. Snap-On Tools Corp., 913 F.2d 108, 111 (3d Cir. 1990)). This policy "`has always been rigorously enforced by the courts.'" Id. (quoting
Defendants removed plaintiff's state law complaint to this Court based on the well-pleaded complaint rule—i.e., the complaint raises a substantial federal question. A federal question case is one "`arising under the Constitution, laws, or treatises of the United States.'" Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 63, 107 S.Ct. 1542, 95 L.Ed.2d 55 (1987) (quoting 28 U.S.C. § 1331). "The presence or absence of federal-question jurisdiction is governed by the `well-pleaded complaint rule,' which provides that federal question jurisdiction exists only when a federal question is presented on the face of the plaintiff's properly pleaded complaint." Caterpillar Inc. v. Williams, 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). "The rule makes the plaintiff the master of the claim; he or she may avoid federal jurisdiction by exclusive reliance on state law." Id.
In Franchise Tax Bd. v. Construction Laborers Vacation Trust, 463 U.S. 1, 103 S.Ct. 2841, 77 L.Ed.2d 420 (1983), the Supreme Court "referred to two situations where federal jurisdiction could be available even though plaintiff based its claim in state court on state law: (1) when it appears that some substantial, disputed question of federal law is a necessary element of one of the well-pleaded state claims or (2) when it appears that plaintiff's claim is `really' one of federal law." Goepel v. National Postal Mail Handlers Union, a Div. of LIUNA, 36 F.3d 306, 310 (3d Cir.1994) (quoting Franchise Tax Bd., 463 U.S. at 13, 103 S.Ct. 2841) (other citations omitted). This doctrine "captures the commonsense notion that a federal court ought to be able to hear claims recognized under state law that nonetheless turn on substantial questions of federal law, and thus justify resort to the experience, solicitude, and hope of uniformity that a federal forum offers on federal issues." Grable & Sons Metal Products, Inc. v. Darue Engineering & Mfg., 545 U.S. 308, 312, 125 S.Ct. 2363, 162 L.Ed.2d 257 (2005).
A federal issue is not "a password opening federal courts to any state action embracing a point of federal law," however. Id. at 314, 125 S.Ct. 2363. The federal issue will ultimately qualify for a federal forum "only if federal jurisdiction is consistent with congressional judgment about the sound division of labor between state and federal courts governing the application of § 1331." Id. at 313-14, 125 S.Ct. 2363. Thus, the question to be asked is "does a state-law claim necessarily raise a stated federal issue, actually disputed and substantial, which a federal forum may entertain without disturbing any congressionally approved balance of federal and state judicial responsibilities." Id.; see also Christianson v. Colt, 486 U.S. 800, 809, 108 S.Ct. 2166, 100 L.Ed.2d 811 (1988) (explaining that jurisdiction pursuant to § 1338(a) extends "only to those cases in which a well-pleaded complaint establishes either that federal patent law creates the cause of action or that the plaintiff's right to relief necessarily depends on resolution of a substantial question of federal patent law in that patent law is a necessary element of one of the well-pleaded claims").
Defendants in this case urge the Court to answer "yes" to that question. Defendants argue that plaintiff's legal malpractice claims involve, like all such claims, the resolution of a case-within-a-case—that
Plaintiff vigorously disagrees with defendants' view of its case. Plaintiff does not dispute the elements that need to be proven for a legal malpractice claim in New Jersey
The one thing the parties agree upon is that the United States Court of Appeal for the Third Circuit has not addressed the issue nor does it appear to this Court that it ever will under the current structure of the federal judiciary and the rules of appellate jurisdiction.
Recently, two district courts in other jurisdictions—Eastern District of Michigan and Northern District of Texas—have addressed the identical arguments to those advanced here. In the Michigan case, a manufacturer of lacrosse and hockey equipment retained the legal services of the defendant attorneys and their law firms to prosecute a patent for a lacrosse stick head. Warrior Sports, Inc. v. Dickinson Wright, P.L.L.C., 632 F.Supp.2d 694 (E.D.Mich.2009). The manufacturer claimed that the defendants committed legal malpractice by failing to timely file maintenance fees resulting in the lapse of its patent, failed to fully communicate with it, and failed to effectuate a timely reinstatement of the lapsed patent. Warrior Sports, 632 F.Supp.2d at 699. Pursuant to the court's order to show cause why the case should not be dismissed without prejudice for lack of subject matter jurisdiction, the parties argued that the manufacturer's state law legal malpractice claims arose under federal patent law and the court had subject matter jurisdiction pursuant to § 1338. Id. at 695.
Similarly, in the Texas case, the owner of the rights to a special roofing system filed in federal court a state law legal malpractice action against an attorney and his law firm for their failure to properly prosecute its patent application, resulting in the lapse of the deadline by which the application could be revived and the ultimate loss of federal patent protection. Roof Technical Services, Inc. v. Hill, 679 F.Supp.2d 749 (N.D.Tex.2010). The defendants moved to dismiss the action for lack of subject matter jurisdiction, arguing that the plaintiff's basis for jurisdiction—that its state law claims arise under federal law because of the underlying patent issues— was baseless. RTS, 679 F.Supp.2d at 750.
In both cases, the courts distinguished the Federal Circuit cases advocated by defendants here, and determined that the plaintiffs' state law malpractice cases did not implicate federal law so that jurisdiction in federal court was proper pursuant to 28 U.S.C. § 1338. With regard to the Federal Circuit cases, the courts first summarized them:
RTS, 679 F.Supp.2d at 752; see also Warrior Sports, 632 F.Supp.2d at 697-99 (similarly summarizing Air Measurement and Immunocept).
The courts then distinguished the Federal Circuit cases from the cases before them. In Warrior Sports, the court found that unlike in Air Measurement and Immunocept, the plaintiff's legal malpractice claim (1) did "not necessarily require a court to engage in claim construction, evaluate the viability of underlying patent litigation, or determine if others are infringing the patent in question," (2) "seem[ed] readily addressed without reference to actual substantive and disputed questions of patent law," and (3) "the issues implicated in the underlying disputes . . . d[id] not appear to be matters of importance in the development of patent law." Warrior Sports, 632 F.Supp.2d at 699; see also Warrior Sports, Inc. v. Dickinson Wright, P.L.L.C., 666 F.Supp.2d 749, 751 (E.D.Mich.2009) ("Warrior Sports II") (denying motion for reconsideration and re-emphasizing its prior decision).
In RTS, the court found that "nothing indicates a serious federal interest in adjudicating" plaintiff's legal malpractice claim in federal court: "The federal issues identified by the plaintiffs are not important issues of law. The court will not, for example, have to determine the meaning of federal patent law. Moreover, because the potential federal issues require only application of federal law to the specific facts of this case, the resolution of those issues will not be controlling in numerous other cases. As the Court recognized in Grable, it has rejected the notion that `mere need to apply federal law in a state-law claim will suffice to open the "arising under" door.'" RTS, 679 F.Supp.2d at 753. The RTS court further explained that there was no federal interest at stake because even though there is a federal interest in the uniform application of patent laws, that interest was not implicated where no patent rights were actually at stake—no patent had issued for the invention and none would issue. Id. Thus, even if the court had to decide patent law issues, "those decisions will not create or destroy any patent rights such that uniformity in the way patents are issued or enforced will be threatened." Id.
Assuming, without deciding,
With regard to the U.S. patent, plaintiff claims that defendants failed to file a response to the USPTO Examiner's Office Action, dated November 17, 2004, by the December 17, 2004 deadline, thus causing plaintiff's application to become abandoned on that date. Plaintiff also claims that defendants informed plaintiff of the November 17, 2004 Office Action on January 6, 2005, but did not inform it of the then-passed December 17, 2004 deadline. According to plaintiff, defendants instead informed plaintiff that it had until February 17, 2005 to respond to the Office Action to avoid extension fees, but that the drop-dead date was May 17, 2005. May 17, 2005 passed without any action by defendants. On December 17, 2005, the deadline for filing a petition to revive the patent application for unintentional abandonment expired. In summary, plaintiff alleges that defendants "failed to timely report the Office Action within the initial one-month deadline, allowed the six-month deadline to pass without further communication, failed to file a petition to revive within the one year deadline despite receiving written instructions to proceed, raised the possibility of petitioning to revive and prepared a draft petition and response nearly eight months after the deadline had passed, received instructions from [plaintiff] to pursue revival, and still failed to file the petition seven months later." (Compl. ¶ 69.)
Just like in RTS and Warrior Sports, even though the underlying issue involves a patent application, plaintiff's legal malpractice claim does not turn on substantial questions of federal law. Plaintiff's claim is simply that defendants repeatedly missed deadlines that caused plaintiff's application to be deemed abandoned. Unlike in the Federal Circuit cases, the resolution of plaintiff's claim does not
Federal jurisdiction cannot lie in this case for two other reasons. First, like in the Michigan and Texas cases, the patent law sub-inquiry is specific to the facts of this case. Although it is true that in order to prevail on its legal malpractice claim plaintiff must demonstrate that it would have been issued a valid patent but for defendants' actions, and that analysis requires the determination of the invention's patentability,
The final reason why jurisdiction cannot be predicated on § 1338 is the removal statute's strict presumption against removal. The removal statutes are "to be strictly construed against removal and all doubts should be resolved in favor of remand." Boyer v. Snap-On Tools Corp., 913 F.2d 108, 111 (3d Cir. 1990). The Court recognizes that unlike other federal claims which can be heard in either state or federal court, see Tafflin v. Levitt, 493 U.S. 455, 458-59, 110 S.Ct. 792, 107 L.Ed.2d 887 (1990) ("[S]tate courts have inherent authority, and are thus presumptively competent, to adjudicate claims arising under the laws of the United States."), § 1338 provides that the "district courts shall have original jurisdiction of any civil action arising under any Act of Congress relating to patents," 28 U.S.C. § 1338; see also Christianson v. Colt Indus. Operating Corp., 486 U.S. 800, 809, 108 S.Ct. 2166, 100 L.Ed.2d 811 (1988) (holding that § 1338 jurisdiction extends to any case "in which a well-pleaded complaint establishes either that federal patent law creates the cause of action or that the plaintiff's right to relief necessarily depends on resolution of a substantial question of federal patent law, in that patent law is a necessary element of one of the well-pleaded complaints"). This case, however, relates to legal malpractice for missed deadlines, and not to patents, as there is no actual patent at issue. Thus, there is no basis for exclusive jurisdiction in the federal courts in this case.
Eastern District of Michigan Chief Judge Gerald Rosen's observation in Warrior Sports sums it up succinctly: "Using [the] case-within-a-case analytical framework to sweep an entire class of state-law claims into federal law's preemptive reach would unavoidably result in a case of the tail wagging the dog." Warrior Sports II, 666 F.Supp.2d at 751. Plaintiff's legal malpractice claim regarding defendants' alleged failure to comply with procedural deadlines in the prosecution of plaintiff's U.S. patent application belongs in state court where the case was originally filed. Accordingly, plaintiff's motion for remand will be granted. An appropriate Order will be entered.