Mankaruse v. Intel Corporation ( 2021 )


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  • Case: 20-2297   Document: 41     Page: 1   Filed: 05/07/2021
    NOTE: This disposition is nonprecedential.
    United States Court of Appeals
    for the Federal Circuit
    ______________________
    NAGUI MANKARUSE,
    Plaintiff-Appellant
    v.
    INTEL CORPORATION, ACER AMERICA
    CORPORATION, DANIEL PATRICK DOCTER,
    MATTHEW ROBERT HULSE, ANDY D. BRYANT,
    DOES 1-10, INCLUSIVE,
    Defendants-Appellees
    ______________________
    2020-2297
    ______________________
    Appeal from the United States District Court for the
    Central District of California in No. 8:19-cv-01902-DOC-
    JDE, Judge David O. Carter.
    ______________________
    Decided: May 7, 2021
    ______________________
    NAGUI MANKARUSE, Huntington Beach, CA, pro se.
    PETER GRATZINGER, Munger Tolles and Olson LLP, Los
    Angeles, CA, for defendants-appellees.
    ______________________
    Before TARANTO, LINN, and CHEN, Circuit Judges.
    Case: 20-2297    Document: 41      Page: 2    Filed: 05/07/2021
    2                          MANKARUSE   v. INTEL CORPORATION
    TARANTO, Circuit Judge.
    Nagui Mankaruse, proceeding pro se, brought this ac-
    tion in district court against Intel Corporation, Acer Amer-
    ica Corporation, and a host of Intel employees in their
    personal capacity (collectively, Intel), alleging patent in-
    fringement and trade-secret misappropriation. Having de-
    fended against similar, and in large part the same, claims
    by Mr. Mankaruse in California state courts three times
    before, Intel asked the district court for, and received, an
    order deeming Mr. Mankaruse a vexatious litigant, requir-
    ing him to seek court permission before filing further cases
    against it, and also requiring him to post a $25,000 security
    bond before proceeding with the present case. See Order,
    Mankaruse v. Intel Corp., No. 8:19-cv-01902-DOC (C.D.
    Cal. Jan. 27, 2020), ECF No. 34; Intel Appx. 1–2. Mr.
    Mankaruse failed to post the required bond, and the dis-
    trict court dismissed this case. We affirm.
    I
    The district court’s order in this case expressly relied
    on its similar, more extensively explained order in
    Mankaruse v. Raytheon Co., No. 8:19-cv-01904-DOC, 
    2020 WL 2405258
    , at *1 (C.D. Cal. Jan. 23, 2020) (Raytheon Pre-
    Filing Order). See Intel Appx. 1 (“The Court adopts the
    legal and factual findings in [the Raytheon] order to
    GRANT Defendant’s Motion here.”). In fact, the order in
    this case expressly covers the Raytheon defendants as well
    as the defendants in this case. Intel Appx. 1–2. Today we
    affirm the Raytheon Pre-Filing Order. Mankaruse v. Ray-
    theon Co., No. 2020-2309 (Fed. Cir. May 7, 2021). We rely
    here on our opinion in the Raytheon matter.
    Mr. Mankaruse filed this action in the Central District
    of California in October 2019. See Complaint, Mankaruse
    v. Intel Corp., No. 8:19-cv-01902 (C.D. Cal. Oct. 3, 2019),
    ECF No. 1. The action, for infringement of a U.S. patent
    and a Canadian patent and for trade-secret misappropria-
    tion, is nearly identical to the Raytheon action, which Mr.
    Case: 20-2297     Document: 41      Page: 3   Filed: 05/07/2021
    MANKARUSE   v. INTEL CORPORATION                            3
    Mankaruse filed the same day. Previously, Mr. Mankaruse
    had sued Intel three times in state court, asserting various
    claims for trade-secret misappropriation, breach of con-
    tract, and torts, based on purported disclosures of trade se-
    crets and of the technology described in the two patents
    that he made to Intel as early as 2004. See Intel Appx. 45
    ¶ 22, 49 ¶ 30; see also Mankaruse v. Intel Corp., Case No.
    30-2016-00884058 (Orange Cnty. Super. Ct. filed Oct. 31,
    2016); Mankaruse v. Intel Corp., Case No. 30-2018-
    00971116 (Orange Cnty. Super. Ct. filed Feb. 2, 2018);
    Mankaruse v. Intel Corp., Case No. 30-2018-00971179 (Or-
    ange Cnty. Super. Ct. filed Feb. 2, 2018). The second and
    third cases were filed only three weeks after the state court
    dismissed Mr. Mankaruse’s claims in the first case (but be-
    fore that judgment was final) and consisted of separated
    claims that he had filed in his first case. See Intel Appx.
    388 (final judgment in Case No. 30-2016-008848058); id. at
    320, 395 (complaints in additional cases). Of importance
    here, Mr. Mankaruse also had filed numerous unsuccessful
    lawsuits on similar claims against Raytheon between 2013
    and 2017. See Mankaruse v. Raytheon Co., slip op. at 2–5.
    The history of suits against Raytheon alone, we hold today,
    supported a determination of vexatiousness, a pre-filing-
    approval order, and a bond requirement. Id. at 6–11.
    In the present case, on January 3, 2020—after Mr.
    Mankaruse had filed an amended complaint in this matter
    and Raytheon had sought the vexatiousness determina-
    tion, pre-filing-approval, and bond relief in the case against
    it—Intel sought the same determination and relief here.
    Intel Appx. 170–80. In its motion, Intel referred the court
    to Raytheon’s motion, electing “not [to] repeat the history
    of [Mr. Mankaruse’s] unsuccessful state court actions
    against Raytheon and Intel” set forth in Raytheon’s motion
    and “fully adopt[ing]” those facts, while supplementing
    them with Intel-specific background. Id. at 175.
    On January 21, 2020, the district court held a “hearing”
    regarding both the Intel and Raytheon motions, Intel Appx.
    Case: 20-2297     Document: 41      Page: 4   Filed: 05/07/2021
    4                          MANKARUSE    v. INTEL CORPORATION
    760 (transcript first page showing captions for both cases)
    see id. at 761–63 (listing counsel for both bases), during
    which Mr. Mankaruse and counsel for both Intel and Ray-
    theon were present, and the court invited Mr. Mankaruse
    to argue first, with counsel for both defendants to respond
    afterwards, id. at 769; see also id. at 761–93. Mr.
    Mankaruse argued first, and the court then invited Ray-
    theon’s counsel to present argument on the vexatious liti-
    gant motion, id. at 775–79, before providing Mr.
    Mankaruse an opportunity for rebuttal, id. at 779–82. At
    that time the court had to end the day’s hearing, and Intel,
    not having presented its argument on the substance of its
    motion, stated that its motion had a separate hearing date
    set for February 3, 2020, but it “rel[ied] on the same argu-
    ments as the Raytheon defendants.” Id. at 791. The court,
    seemingly concerned not to deny Intel a full opportunity to
    argue its case, indicated that it anticipated seeing Intel,
    and Mr. Mankaruse for rebuttal, on February 3. Id.
    On January 23, 2020, evidently not seeing a need to
    hear more from Intel, the district court gave the same relief
    to Intel in this case that it gave, the same day, to Raytheon,
    relying on the explanation set out in the Raytheon Pre-Fil-
    ing Order. Id. at 1–2. It found Mr. Mankaruse a vexatious
    litigant. It required pre-filing approval of pro se cases
    against Intel (and, even in this order, against Raytheon).
    And it required a bond of $25,000—over and above the bond
    in the same amount required in the Raytheon matter.
    When Mr. Mankaruse failed to post the bond in the time
    specified, the district court dismissed the claims and en-
    tered a final judgment on May 18, 2020. Id. at 3–4. We
    have jurisdiction over Mr. Mankaruse’s appeal.
    II
    A
    Mr. Mankaruse argues that the district court failed to
    provide him an adequate opportunity to be heard specifi-
    cally on the Intel motions (a contention he has not made
    Case: 20-2297     Document: 41      Page: 5     Filed: 05/07/2021
    MANKARUSE   v. INTEL CORPORATION                              5
    regarding Raytheon’s motions). Mankaruse Opening Br.
    10–11. We reject this argument.
    Mr. Mankaruse had notice of Intel’s motion and re-
    ceived an opportunity to brief the issue to the district court.
    See Intel Appx. 473–711. At the “hearing” on January 21,
    2020, both the Intel and Raytheon cases were called, and
    counsel for both Intel and Raytheon were introduced. See
    id. at 764–67. The district court began by giving Mr.
    Mankaruse the opportunity to present his arguments
    against the motions, and he did so. The transcript reveals
    that Mr. Mankaruse, in making his arguments, discussed
    both Raytheon and Intel. See id. at 779–82. He spoke of
    “three categories” of cases, relating to employment, breach
    of contract, and intellectual property, and stated that one
    of those “categories”—the trade-secret claims—related to
    both Intel and Raytheon. Id. at 773–74 (“The third cate-
    gory was two - - two trade secret cases, one against Intel
    and one against Raytheon.”). He argued the similarity of
    Intel and Raytheon for purposes of the motions for security
    bond. Id. at 781. The same is true of his briefing on the
    issue—Mr. Mankaruse repeatedly addressed the issue as a
    unitary one, related to Raytheon and Intel collectively.
    See, e.g., id. at 475 (referring to “defendants Intel, et al and
    Raytheon et al”); id. at 477 (discussing “these two groups
    of defendants in the two Cases”). And Intel, for its part,
    made clear that it was relying on the same arguments that
    Raytheon made, id. at 175, and Mr. Mankaruse does not
    complain about his opportunity to respond to Raytheon’s
    arguments.
    In these circumstances, we see no prejudicially inade-
    quate opportunity for Mr. Mankaruse to present his case
    against the motions. In a related context, the Ninth Circuit
    has stated that “an opportunity to be heard does not re-
    quire an oral or evidentiary hearing on the issue,” but ra-
    ther “[t]he opportunity to brief the issue fully satisfies due
    process requirements.” Pac. Harbor Capital, Inc. v.
    Case: 20-2297     Document: 41      Page: 6    Filed: 05/07/2021
    6                           MANKARUSE   v. INTEL CORPORATION
    Carnival Air Lines, Inc., 
    210 F.3d 1112
    , 1118 (9th Cir.
    2000). 1 In any event, Mr. Mankaruse had the opportunity
    to present oral arguments to the court, and he was not re-
    stricted to arguing about Raytheon’s motion and he did not
    so restrict his argument. We cannot say that Mr.
    Mankaruse was not given “an opportunity to oppose the en-
    try of the order.” De Long, 912 F.2d at 1147.
    B
    On the merits of the vexatiousness determination and
    imposition of a pre-filing-approval requirement, we con-
    clude that this case, though different from the Raytheon
    case, is not different in a way that changes the result. In
    the Raytheon case, the earlier litigation against Raytheon
    alone sufficed to support the district court’s order. Here,
    we need not decide whether the earlier litigation against
    Intel alone—a lesser volume—would support the district
    court’s order. We see nothing in Ninth Circuit law that
    limits the basis for such an order to litigation directly
    against the specific defendant, to the exclusion of closely
    related litigation against others, where the totality augurs
    further frivolous, harassing, burdensome litigation against
    the specific party now seeking a pre-filing-approval order.
    Mr. Mankaruse mentions the Ninth’s Circuit decision
    in Ringgold-Lockhart v. County of Los Angeles, 
    761 F.3d 1057
     (9th Cir. 2014). That decision reflects the showing
    needed to justify an order of this sort. The Ninth Circuit
    vacated and remanded the district court’s pre-filing order,
    after determining that the substantive findings of frivo-
    lousness and harassment were unsupported by the record
    of the plaintiff’s filings, and that the district court had not
    1   The Ninth Circuit relied on Pacific Harbor in its
    decision in Molski v. Evergreen Dynasty Corp., 
    500 F.3d 1047
    , 1058 (9th Cir. 2007), about pre-filing-approval or-
    ders.
    Case: 20-2297    Document: 41       Page: 7    Filed: 05/07/2021
    MANKARUSE   v. INTEL CORPORATION                            7
    considered other remedies. Ringgold-Lockhart, 761 F.3d at
    1064–66. The Ninth Circuit did not restrict the focus to
    previous filings against the specific defendant.
    Here, Mr. Mankaruse’s history of litigation against
    Raytheon provided a concrete basis for finding that there
    was a sufficiently high probability of harassing, frivolous
    litigation to justify a pre-filing-approval order (and bond
    requirement) in his new case against Raytheon. See
    Mankaruse v. Raytheon Co., slip op. at 6–11. The present
    case against Intel is nearly identical in subject matter to
    that case against Raytheon. A similar determination is
    warranted in this case based on the Raytheon-related pat-
    tern, a smaller Intel-related pattern, and the strong over-
    lap of the two cases. Moreover, unlike the district court in
    Ringgold-Lockhart, the district court in this matter (by
    adoption of the legal and factual findings in the Raytheon
    matter) considered whether other remedies were adequate,
    but determined, with a sound basis, that they were not,
    given Mr. Mankaruse’s earlier behavior. Compare Ray-
    theon Pre-Filing Order, 
    2020 WL 2405258
    , at *1, with
    Ringgold-Lockhart, 761 F.3d at 1065 (discussing use of
    Rule 11 sanctions before resorting to declaring vexatious
    litigant). Recognizing the importance of limiting pre-filing-
    approval orders to rare cases, we find no abuse of discretion
    in this case under Ninth Circuit standards.
    C
    We see no material difference between this case and
    the Raytheon case regarding the propriety of the bond or,
    therefore, the dismissal after Mr. Mankaruse failed to post
    the required bond in the specified time.
    III
    For the foregoing reasons, we affirm the district court’s
    dismissal of Mr. Mankaruse’s suit against Intel.
    The parties shall bear their own costs.
    Case: 20-2297   Document: 41   Page: 8   Filed: 05/07/2021
    8                      MANKARUSE   v. INTEL CORPORATION
    AFFIRMED
    

Document Info

Docket Number: 20-2297

Filed Date: 5/7/2021

Precedential Status: Non-Precedential

Modified Date: 5/7/2021