U.S. Aluminum Corporation/texas, a Corporation v. Alumax, Inc., a Corporation

U.S. Aluminum Corporation sued Alumax, Inc. for malicious prosecution. The district court granted Alumax’s motion for summary judgment on the ground of collateral estoppel, 636 F.Supp. 441 , and Aluminum appealed. We review the district court’s entry of summary judgment de novo. Fagner v. Heckler, 779 F.2d 641, 543 (9th Cir.1985). We reverse and remand for further proceedings.

FACTS AND PROCEEDINGS BELOW

In the first lawsuit, Aluminum successfully defended a patent infringement action brought by Alumax’s subsidiary Howmet Aluminum Corp. The district court awarded attorneys fees to Aluminum under section 285 of the federal patent law. 35 U.S.C. § 285 . On appeal the Federal Circuit rejected appellant’s contention that Alumax had prosecuted that action in bad faith and reversed on the attorneys’ fees issue.

Aluminum then brought the present action, a suit for malicious prosecution, against Alumax. Alumax filed a motion for summary judgment. The district court granted the motion on the ground that Aluminum was collaterally estopped from litigating a necessary element of its claim. The district court explained that a malicious prosecution claim, at a minimum, requires a showing of…