Canda Bros. v. Michigan Malleable Iron Co.

152 F. 178, 81 C.C.A. 420, 1907 U.S. App. LEXIS 4268
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 21, 1907
DocketNo. 1,615
StatusPublished
Cited by15 cases

This text of 152 F. 178 (Canda Bros. v. Michigan Malleable Iron Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canda Bros. v. Michigan Malleable Iron Co., 152 F. 178, 81 C.C.A. 420, 1907 U.S. App. LEXIS 4268 (6th Cir. 1907).

Opinion

SEVERENS, Circuit Judge.

This cause was here in 1903 on appeal from a decree of the Circuit Court dismissing the bill. The suit was for the infringement of a patent granted to Canda, September 29, 1891, for the invention of a draw-bar attachment for connecting railroad cars. The number of the patent was 460,426. Being of opinion that the first claim of the patent was valid, and finding that the defendant infringed it, we reversed the decree, and directed the Circuit Court to enter a decree in favor of the complainants in respect of said first claim, and thereupon to proceed to ascertain the profits and damages and to 'grant the usual, relief. The case is reported in 124 Fed. 486, 61 C. C. A. 194. On entering the proper decree in the court-below, a reference to a master was ordered to take proof and state.an account [179]*179of the profits and damages, and report the same to the court. On coming before the master, the complainants renounced their claim for damages, and the parties went into proof in respect to the profits. It was shown that on October 3, 1899, Ferdinand E. Canda, the paten-tee, assigned a one-half interest in his patent to the co-complainant, Charles J. Canda, and it came to be owned by them as a partnership. The complainants offered proof to show infringement and damages occurring before the assignment as well as subsequent thereto. Objection was made by the defendant to the proof concerning the period before the assignment. The master in his report divided the whole period of infringement covered by the evidence into three parts; First, that before the assignment; second, that directly following and continuing until the end of the time during which sales were made and profits realized; and, third, a subsequent space of time during which the defendants manufactured casing for a customer who never paid' for them, and from whom the debt is uncollectible. For the first period the master found the profits to be $6,905.41, for the second $11,659.50, and the losses from the manufacture in the ‘third to be $6,634.56. The master reported against the allowance of a recovery for the profits accruing during the first period, and in favor of their allowance for the second period; and he also reported in favor of a contention for the defendant that the losses of the third period should be deducted from the profits allowed for the second period. The result was a balance in favor of the complainant of $5,0¾4.94._ Exceptions to the report were filed by each party. So far as some of these are material, they will be mentioned later on; but for our immediate purposes it should be stated that the court sustained the complainants’ exception to the master’s disallowance of the profits for the first period, but overruled the complainant’s exception to the master’s deduction of the losses of the third period. Having also overruled exceptions to the allowance of the profits for the second period, the court rendered a decree upon this adjustment in favor of the complainant for the sum of $11,930.35. Both parties have appealed.

1. The first question in its order to be considered is whether the complainants were entitled to recover the profits made during the period of infringement while Frederick J. Canda was the sole owner of the patent. The master was of opinion that they could not be recovered in this suit because the other complainant had no interest in them; but the court held otherwise, and allowed them, and we think that in this the court was in error. The general rule is that all the parties suing must have an interest in the recovery in order to warrant a judgment therefor in their favor. Even if that were permissible, the bill did not seek to recover a several decree in favor of one of the complainants for one part of the profits, and a joint decree for another. On the contrary, the complaint was of infringement after the date of the assignment. In support of the ruling of the court in this particular, the learned judge cited Moore v. Marsh, 7 Wall. 515, 19 L. Ed. 37; but that case is not in point for the complainants. The pat-entee, some time after getting his patent, assigned a one-half interest therein to another party. Subsequently the patentee brought a suit to recover damages for infringement committed before the assignment. [180]*180The defendant pleaded the assignment, and insisted that, as at the bringing of the suit another party had become interested in the patent, such other party should have been joined as plaintiff. But the Supreme Court held otherwise, and Mr. Justice Clifford, at page 522 of 7 Wall. (19 L. Ed. 37), said:

“It is clear that unless the plaintiff can maintain the action there can be no redress, as it is too plain for argument that a subsequent assignee or grantee can neither maintain an action in his own name, or be joined with the patentee jn maintaining it for any infringement of the exclusive right committed before he became interested in the patent. Undoubtedly the assignee thereafter stands in the place of the patentee, both as to right under the patent and future responsibility; but it is a great mistake to suppose that the assignment of a patent carries with it a transfer of the right to damages for an infringement committed before such assignment.”

In the case of Adams v. Bellaire Stamping Co. (C. C.) 25 Fed. 270, cited by counsel for complainants, the suit was brought by a single plaintiff, who was assignee of the patentee, and was also assignee of the damages for prior infringements. The question was whether he could recover for prior and for subsequent infringements and Judge Sage held that he could. This was because he was the assignee of the patentee’s damages.' The court below erred in including the profits for this period in the recovery, and the decree must be corrected accordingly.

. 2. The court below also erred in sustaining the defendant’s claim of a deduction for the losses incurred by said defendant during tire third period of the reckoning, and in deducting those losses from the profits which the complainants were otherwise entitled to recover. In the opinion of the court, the cases of the Cawood Patent, 94 U. S. 710, 24 L. Ed. 238, and Rubber Company v. Goodyear, 9 Wall. 788, 19 L. Ed. 566, are cited as authority for the ruling; but these cases only hold that losses occurring concurrently with the gaining of profits may be taken into account — that is to say, if they are losses directly resulting from the particular transaction on which the profits are allowed. Though called losses, they are really diminutions which are taken into account in reaching the resultant profits of the sales on which profits were made. The general statements made by the justices who delivered the opinions in the cases last cited, and which are here relied on as authority for the claim that all the transactions running through several years are to be looked to, and the profits and losses of a continuous'business are to be balanced for a result, do not sustain such a contention. The meaning and authority of such general statements should be limited by the facts of the case in which they were expressed. And it is necessary to impose such limitations in order to make the statements consistent with the law as since declared by the same court. Callaghan v. Myers, 128 U. S. 617, 664, 9 Sup. Ct. 177, 32 L. Ed. 547; Crosby Valve Co. v. Safety Valve Co., 141 U. S. 453, 12 Sup. Ct. 49, 35 L. Ed. 809; Walker on Patents (4th Ed.) § 713.

3. It appears that the proofs before the master included the profits on the bottom plate of the casing, and the report of the master included them.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Duplate Corp. v. Triplex Safety Glass Co.
298 U.S. 448 (Supreme Court, 1936)
Ruth v. Stearns-Roger Mfg. Co.
13 F. Supp. 697 (D. Colorado, 1935)
MacBeth-evans Glass Co. v. L. E. Smith Glass Co.
23 F.2d 459 (Third Circuit, 1927)
American Stainless Steel Co. v. Ludlum Steel Co.
16 F.2d 823 (S.D. New York, 1926)
Herman v. Detroit Shipbuilding Co.
295 F. 423 (E.D. Michigan, 1924)
Union Electric Welding Co. v. Curry
279 F. 465 (Sixth Circuit, 1922)
Underwood Typewriter Co. v. Fox Typewriter Co.
220 F. 880 (Sixth Circuit, 1915)
Johnston v. Southern Well Works Co.
208 F. 145 (Fifth Circuit, 1913)
Dowagiac Mfg. Co. v. Superior Drill Co.
162 F. 479 (Sixth Circuit, 1908)
McSherry Mfg. Co. v. Dowagiac Mfg. Co.
160 F. 948 (Sixth Circuit, 1908)
P. P. Mast & Co. v. Superior Drill Co.
154 F. 45 (Sixth Circuit, 1907)

Cite This Page — Counsel Stack

Bluebook (online)
152 F. 178, 81 C.C.A. 420, 1907 U.S. App. LEXIS 4268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canda-bros-v-michigan-malleable-iron-co-ca6-1907.