Amdyco Corporation v. Urquhart

39 F.2d 943, 5 U.S.P.Q. (BNA) 193, 1930 U.S. Dist. LEXIS 2001
CourtDistrict Court, E.D. Pennsylvania
DecidedApril 8, 1930
Docket4553
StatusPublished
Cited by6 cases

This text of 39 F.2d 943 (Amdyco Corporation v. Urquhart) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Amdyco Corporation v. Urquhart, 39 F.2d 943, 5 U.S.P.Q. (BNA) 193, 1930 U.S. Dist. LEXIS 2001 (E.D. Pa. 1930).

Opinion

THOMPSON, District Judge.

This suit in equity was brought by the plaintiff against the defendants praying for a decree adjudging the plaintiff the equitable owner of an application for letters patent, Serial No. 69,559, filed by the defendant Radeliff Morris Urquhart November 17,1925, for an improvement in a method and apparatus for extinguishing fires, upon the ground that the plaintiff is the lawful owner thereof by reason of the fact that the defendant Urquhart was in the employ of the plaintiff or its predecessor, the American Dyewood Company, when he made the invention and discoveries which are the subject-matter of the application.

Prom the pleadings and proofs, it appears that Urquhart in 1922, being interested in the production of fire-extinguishing foam, took up with the American Dyewood Company the subject of producing materials for stabilizing fire-extinguishing foam. The American Dyewood Company was engaged in extracting dyes and other essences from wood. A Mir. Blagdon, vice president and general manager of the company, took Mr. Urquhart to the company’s plant at Chester, Pa., and, after numerous visits and experiments, the company produced a satisfactory liquid extract suitable as a foam stabilizer. Urquhart’s business was the sale of foam-forming compounds for introduction into water to be projected in a stream through a hose for extinguishing fire, the air in the foam causing a blanket which prevents the growth or spreading of fire and thus causes its extinction. The object of the stabilizer was to prevent the breaking up of the foam by means of some extract, for instance that of licorice root, which would render the foam stable and prevent its disintegration. At the outset, the purpose of the parties was that the Dyewood Company would manufacture such wood extracts for Urquhart to be used in his business, but later, after Mr. Blagdon had assured Urquhart that he would be protected from having his stabilizer ideas appropriated, the president of the Dyewood Company informed, him that they intended *944 to sell the stabilizer to others and offered TJrquhart the position of sales manager of the stabilizer department of their business, which they were about to organize. As a consequence of negotiations between the parties, a contract in writing was entered into between the Dyewood Company and TJrquhart, under which TJrquhart was employed as a sales manager of the “Fyrout” department of the company, under which he was to receive commissions on all sales of the stabilizing product which they called “Fyrout” and a salary of $500 per. month. The contract is as follows:

“Agreement made this 7th day of June, 1923, between American Dyewood Company, a corporation of the State of Pemisylvania, (hereinafter called the Company) party of the first part and R. M. TJrquhart, now of the City of Philadelphia, State of Pennsylvania (hereinafter called Mr. TJrquhart) party of the second part:
“Whereas, Mr. TJrquhart, in or about the month of August, 1922, suggested to the Company that it might advantageously engage in the manufacture of a product now known as “Fyrout” and since that time Mr. TJrquhart has cooperated with the Company in relation thereto and the product is now ready for the market, and whereas it is the desire of the Company and of Mr. TJrquhart. to enter into this- contract fixing the terms .of their relationship:
“Now therefore in consideration of the foregoing and of the mutual covenants herein contained, it is agreed as follows:
“First: Mr. TJrquhart is to be the Sales Manager of the “Fyrout” department of the Company and sell the product known as “Fyrout,” subject at all times to- the direction of the Company. Mr. TJrquhart is to devote his entire time to selling the product and traveling in such territory as the Company may consider as advantageously to be canvassed. All sales are to be made and prices to be upon terms to be fixed and approved by the company and under forms of contracts prescribed and approved by the company. Mr. TJrquhart will, from time to time, make reports of all sales and forward to the head office of the Company copies of all such contracts. This engagement of Mr. TJrquhart is to continue for a period of one year from May 1st, 1923. If Mr. TJrquhart or the Company may wish to terminate his employment on or after May 1st, 1924, he or it shall give to the other six months written notice of such desire, and at the termination of said six months his employment as sales manager of the “Fyrout” Department shall terminate.
“Second: Company agrees to pay Mr. TJrquhart:
“ (a) The usual necessary traveling expenses incurred in the conduct of such business, upon statements to be rendered by him weekly. This is to continue so long as he is in the employ of the company.
“(b) Commissions on all sales of the product “Fyrout” made by the Company until the termination of this agreement, such commissions to be upon the following gross sale price basis:
“On all sales at 10 cents or over per pound 8%.
“On all sales. at 9 cents and under 10 cents per pound 7%.
“On all sales at .8 cents and under 9 cents per pound 6%.
“On all sales at 7 cents and under 8 cents per pound 5%.
“On all sales at 6 cents and under 7 cents per pound 4%.
“On all sales at 5 cents and under 6 cents per pound 3%.
“On all sales at 4 cents and under 5 cents per pound 2%.
“On all sales under 4 cents per pound 1 %%•
“At the end of each quarter, the company will prepare a statement of commissions earned by Mr. TJrquhart, and will pay to Mr. TJrquhart the amount of such commissions. The payment of these commissions is to continue for a period of at least five years — that is to say until May 1st, 1928. TMs payment of commissions is to continue whether Mr. TJrquhart remains in the employ of the company or not, provided that the contract as to Mr. TJrquhart’s engagement under salary is terminated by the company and not by Mr. TJrquhart, but such payment of commissions is, however, upon condition that Mr. TJrquhart shall not, during the said period expiring May 1st, 1928, sell or aid in the sale or manufacture of any product which competes in any way with the said “Fyrout.”
“(c) Salary at the rate of five hundred dollars ($500) per month, beginning as of date May 1st, 1923, and shall continue at least for a period of one year, that is, until May 1st, 1924.
“In witness whereof the parties hereto have duly executed this agreement the day and year first above written.
“American Dyewood Company
“By Dewitt Clinton Jones, Vice President.
“Attest: Ernest W. Picker, Secretary.
“[Corporate Seal.]
“R. M. TJrquhart.”

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Bluebook (online)
39 F.2d 943, 5 U.S.P.Q. (BNA) 193, 1930 U.S. Dist. LEXIS 2001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/amdyco-corporation-v-urquhart-paed-1930.