Connelly Manufacturing Co. v. Wattles

49 N.J. Eq. 92
CourtNew Jersey Court of Chancery
DecidedOctober 15, 1891
StatusPublished
Cited by3 cases

This text of 49 N.J. Eq. 92 (Connelly Manufacturing Co. v. Wattles) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connelly Manufacturing Co. v. Wattles, 49 N.J. Eq. 92 (N.J. Ct. App. 1891).

Opinion

Van Fleet, V. C.

The question presented for decision in this case is, whether or not the complainant is entitled to an injunction restraining the defendant from making sale or any other disposition of two letters patent granted to him by the government of the United States. The complainant claims that the patents in question are its property in equity, and that, although they were issued to the defendant, still, in point of equity, he simply holds their legal title in trust for it, and that, therefore, he should be enjoined from making any use of them, for his own benefit, until this suit shall have been finally decided. It is not denied or disputed that the patents were issued for inventions which the defendant had made or discovered, but the complainant says that the ¡patents are its property, because when the inventions were made [93]*93which the patents cover, as well as when the letters patent were-issued, the defendant was in its employ under a contract, by which he had bound himself to devote his whole time and skill to its service, and to exercise his inventive faculties for its benefit in improving and perfecting a gas motor for street car propulsion, belonging to it, and to give it all the results thereof. It is-thus seen that the contract upon which the complainant rests its-right to relief is a contract for the special service of making inventions for the purpose of improving and perfecting a machine belonging to the complainant. There can be no doubt that such a contract is clearly within the contracting capacity of any two persons possessing the requisite capacity to make other-valid agreements. A man may sell the conceptions and productions of his mind. He has the same right to agree to work for another with his brains that he has to agree to labor for him-with his hands. In employments where skill or art is required,, the most valuable service which, as a general rule, the employe-renders to his employer is by the exercise of his mental faculties. The doctrine is settled, that where one person agrees to invent for another, or to exercise his inventive ability for the benefit of' another, the inventions made and patents procured during the-time of service covered by the contract belong in equity to the-employer and not to the employe. The adjudications on this subject are uniform, so far as I have examined them. Wilkens v. Spofford, 3 Bann. & A. 274; Burr v. De La Vergne, 102 N. Y. 415; Annin v. Wren, 44 Hun 352; Binney v. Annan, 107 Mass. 94; Hapgood v. Hewitt, 119 U. S. 226, 233. The-decisive question of the case, then, at this time, is, does it satisfactorily appear, on full consideration of all the facts now before the court, that, at the time the inventions were made which are covered by the patents in question, such a contract as that alleged existed between the complainant and defendant?

The circumstances which led the complainant to- make the-contract are described in the bill as follows: prior to the time-when the contract was made the complainant had been engaged in trying to construct a gas motor for the propulsion of street cars; it had so far completed its motor that it had been used, for [94]*94about eight months, on a street railway in the city of Elizabeth; such use had demonstrated that the principles applied were correct, but that “ certain changes in the adaptation of the parts, and some improvements in mechanical details,” were necessary in order to make the motor a complete success ; to make the changes and improvements required, the managers of the complainant believed it was necessary that the services of some person with good mechanical skill and experience should be engaged ; the defendant was recommended as a fit person to perform such service, and shortly thereafter, the complainant says, the contract in question was made. In negotiating the contract Mr. Thomas E. Connelly, vice-president of the complainant, acted for the complainant. He is the only person who has made an affidavit, on the part of the complainant, defining the terms of the contract, or describing what was said and done during the negotiations. He says, in his affidavit, in stating the terms of the contract, that

No written agreement was drawn, but it was distinctly understood that he [the defendant] was to give us the benefit of his whole time, skill, knowledge and ability in improving and perfecting our motor, and it was our distinct understanding that, as the consideration for giving him a larger salary than he demanded, we should secure, with respect to our motor, all the fruits of his skill and inventive ability as applied to it under our supervision; that the sole work in which he was to be engaged was the perfection of our motor, in the development of improvements therein and the elimination of the faults discovered in former practice; * * * it was understood that the defendant should give his undivided attention and time to that single duty.”

Mr. Connelly further says that he and his brother, John S. Connelly, after such contract of employment had been made, pointed out to the defendant faults or defects in the complainant’s motor which experiments had disclosed, and also confided to him all they knew about the motor, and their designs respecting the same, for the purpose of placing him in a position where he could use his skill and inventive ability, in perfecting the motor, to the best advantage.

That part of Mr. Connelly’s affidavit in which he says that the contract limited the defendant’s employment to the special service of making improvements in the motor and eliminating faults — that it was understood he should give his undivided at[95]*95tention and time to that single duty — stands contradicted by the nature and character of the services which the defendant rendered to the complainant from the commencement of his employment to its end. The complainant has annexed a number of affidavits, made by its employes, to its bill, which impute fraudulent misconduct to the defendant in the discharge of his duties as superintendent of the complainant’s shop. These affidavits say that the defendant was the complainant’s superintendent; that he had charge of its employes, directed and supervised their work and kept their time. The bill alleges that he also purchased supplies. The complainant’s bill and affidavits show that the defendant acted as its superintendent during the whole period of his employment, and that is what the defendant says, on his oath, he was employed to do. His affidavit contains a positive and explicit denial of every fact upon which the complainant’s right to an injunction rests. He says that when Thomas E. Connelly first called to see him, Connelly told him that he was looking for a superintendent for their shops at Elizabeth, where they were about to commence the manufacture of gas motors to be used on street cars, and that he (the defendant) had been recommended as a suitable person for the position; that, in reply, he said to Connelly that he had never heard of siich a machine as a gas motor, and that he would not decide whether he would take the position offered until he had visited the shops at Elizabeth;

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Cite This Page — Counsel Stack

Bluebook (online)
49 N.J. Eq. 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connelly-manufacturing-co-v-wattles-njch-1891.