Cavanagh v. Bostitch, Inc.

162 A.2d 785, 91 R.I. 239
CourtSupreme Court of Rhode Island
DecidedJuly 26, 1960
DocketEq. No. 2795
StatusPublished
Cited by9 cases

This text of 162 A.2d 785 (Cavanagh v. Bostitch, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cavanagh v. Bostitch, Inc., 162 A.2d 785, 91 R.I. 239 (R.I. 1960).

Opinions

[240]*240Powers, J.

This is a bill in equity praying for an accounting and recovery of certain bonuses and royalties allegedly earned and remaining unpaid under the -terms of a contract of employment, and further praying for damages for the alleged unlawful termination of the contract. The cause was originally 'heard in the superior court on the respondent’s demurrer and a decree was entered sustaining the demurrer to that part of the bill relating to the second prayer and overruling the demurrer to the rest of the bill. Following a hearing before -a superior court justice on bill, answer and proof a decree was entered denying and dismissing the bill [241]*241of complaint. The cause is before us on the complainant’s appeal from both decrees.

The -bill of complaint alleges and the answer admits that complainant, a resident of the city of Cranston, is and has been a professional engineer and inventor for a number of years; that respondent is the surviving corporation of a merger consummated on or about November 1, 1948 between itself and Boston Wire Stitcher Company, a corporation organized under the laws of the State of Maine, hereinafter sometimes called respondent’s predecessor; and that respondent is a substantial manufacturer of stapling machines, staplers, stapling pliers, hammers and preformed wire staples for loading into stapler machines.

It is further alleged and admitted that from about November 1, 1931 until December 11, 1941 complainant was employed by respondent’s predecessor, during which time he was responsible for certain inventions on which letters patent were issued on the application of complainant and assigned by the latter to respondent’s predecessor; that not all of these inventions are material to this suit, but that the patents relating to and designated as the G-l staple remover, the H-2 hammer, the P-1 plier, the P-4 plier, the T-5 taeker, the crown staple, the B-8 stapler and the B-5 desk stapler manufactured by respondent’s predecessor are material to complainant’s claim, respondent admitting that bonuses were paid to complainant on the first five of these items and that no bonus was paid on the remaining three; that on or about April 7, 1937 complainant and respondent’s predecessor negotiated a contract of employment retroactive to February 1, 1937 and incorporating the provisions of an agreement between complainant and respondent’s predecessor dated June 7, 1932.

The contract of April 7, 1937 is hereinafter set out in full in Appendix A, and the June 7, 1932 agreement, incorporated by reference, appears in Appendix B.

[242]*242The bill further alleges that the total amount of sales was approximately $12,000,000 and that the bonuses earned amounted to $120,000, but that complainant received less than $4,500 in bonuses, and that respondent has assumed responsibility for the obligations of its predecessor to complainant. The respondent admits its responsibility, for the obligations of its predecessor and that the total amount of bonuses paid was less than $4,500, but denies that complainant, earned bonuses in the amount claimed.

The complainant also alleges that he relied on certain oral representations made by Joseph D. A. Whalen, president and treasurer of respondent’s predecessor, contemporary with the execution of the April 7, 1937 contract, that Whalen knew of “one patent wherein I had lost out, but to bear in mind that now I was dealing with honorable men. Now that I was dealing with honorable men, that my royalties would exceed my — would be the big part of my income; that the contract was something to be put away in a drawer and forgotten.”

The record establishes that in accordance with the terms of the contract complainant received his first statement of the bonus earned in August 1937 and succeeding statements at the expiration of six-month periods until the termination of his employment; that there were a total of ten such statements, none of which remained in the possession of complainant; that each such statement was accompanied by a check for the amount alleged to be due, which checks were promptly cashed by complainant; that copies of these statements were not preserved by respondent or its predecessor; and that the only record thereof remaining in the files of Ernst & Ernst, respondent’s accountants, relates to the period covered from August 1, 1941 to the termination of complainant’s employment.

It appears from the record that the bill of complaint was filed on June 25, 1957, within thirty-six days of twenty years from the date of the August 1, 1937 statement and [243]*243approximately fifteen years and eight months from the notice of November 1941 terminating complainant’s employment.

The bill prays:

“1. That this Court order an account to be taken of the moneys received by the Respondent’s predecessor, during the period of Complainant’s employment, from the sale of ’all patented devices invented by the Complainant, as provided in said covenant and agreement; and that a decree be entered ordering the Respondent to pay to the Complainant such sums as may be thereby determined to be due the Complainant together with interest and costs.
“2. That this Court enter a decree either
“(a) Ordering that an account be taken of the moneys received by the Respondent’s predecessor and the Respondent from the sale of each patented device invented by the Complainant, during the period commencing at the termination of the Complainant’s employment and ending at the expiration of said patent; and ordering the Respondent to pay to the Complainant one per cent (1%) of the amount of such sales, together with interest and costs; or
“(b) Ordering the Respondent to pay to the Complainant damages in such amount as the Court may determine to be fair by reason of the termination by Respondent’s predecessor of the Complainant’s employment; or
“(c) Ordering the Respondent to pay to the Complainant the reasonable value of the patented inventions assigned by the Complainant to the Respondent’s predecessor, less such amounts as have heretofore been paid to the Complainant, together with interest and costs.
“3. That the Respondent, its agents and servants, be restrained ex parte and enjoined during the pendency of this cause from destroying or otherwise disposing of books, records, documents and memoranda pertaining to the matters referred to in the Bill of Complaint.
“4. That the Complainant may have such other and further relief as the nature of the-case may require.”

[244]

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Bluebook (online)
162 A.2d 785, 91 R.I. 239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cavanagh-v-bostitch-inc-ri-1960.