In a highly anticipated decision, the Federal Circuit acted en banc to hold "that no adverse inference that an opinion of counsel was or would have been unfavorable flows from an alleged infringer's failure to obtain or produce an exculpatory opinion of counsel." Contrary precedent was overruled. Knorr-Bremse Systeme Fuer Nutzf Ahrzeuge GMBH v. Dana Corp., Nos. 01-1357, 01-1376, 02-1221, 02-1256 (Fed. Cir. Sept. 13, 2004).
Background
: Knorr-Bremse makes air disk brakes for use in tractor-trailers. Dana and Haldex collaborated to sell an air brake manufactured by Haldex. The district court found literal infringement by one of the brake designs. Haldex said it had consulted counsel about the patents, but refused to produce its counsels’ opinions. Dana relied on Haldex. The issue on appeal was the propriety of an adverse inference that the opinions were, or would have been, unfavorable.