Claim Dismissed Against One Defendant Can Still Be The Basis for Conspiracy Claim Aganist Another Defendant

Boynton v. Headwaters, Inc., [2006-1471](July 27, 2007) [SCHALL, Bryson, Holderman] NON-PRECEDENTIAL The Federal Circuit affirmed in part, reversed in part, and remanded the trial court's dismissal of Boynton's patent infringement claim on the pleadings, and summary judgment on his interference with contract and constructive trust claims.
BRIEF: The inventor, Davidson, assigned U.S. Patent No. 5,238,629, assigned the invention to Adtech after Adtech had been administratively dissolved and never reinstated. Davidson conspired to defraud the investors in Adtech by forming and operating a second Adtech entity, and executing documents apparently by the first Adtech entity, assigning rights in the patent to Headwaters. Plaintiffs settled with Davidson, and sued for patent infringement, interference with contract, and constructive trust. Plaintiff's settled with Davidson, and the district court dismissed the patent infringement claim, and granted summary judgment on the interference with contract and constructive trust claims. The Federal Circuit affirmed the dismissal of the patent infringement claim, as there was no allegation of infringement of the patent. The Federal Circuit reversed and remanded the dismissal of the civil conspiracy claim. The Federal Circuit noted that a civil conspiracy claim requires an actionable substantive claim. The Federal Circuit found that the district court erred when it equated the dismissal against Davidson, the co-conspirator, with an inability to show an actionable substantive claim. The reversal as to the civil conspiracy claim, necessitated the reversal as to the constructive trust claim as well.
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