Cramer v. Fry

68 F. 201, 1895 U.S. App. LEXIS 3455
CourtU.S. Circuit Court for the District of Northern California
DecidedApril 12, 1895
StatusPublished
Cited by7 cases

This text of 68 F. 201 (Cramer v. Fry) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Northern California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cramer v. Fry, 68 F. 201, 1895 U.S. App. LEXIS 3455 (circtndca 1895).

Opinion

McKEHNA, Circuit Judge

(orally). At the close of the plaintiff’s testimony, the defendant made a motion for the court to instruct the jury to find a verdict for the defendant, which motion [205]*205was reserved for consideration. Tlie motion was again repeated at tlie close of tlie testimony in the case. The motion is made on two grounds. One is tha t the defendant in the case is the agent of the Singer Sewing-Machine Company, and is not liable; and the other, that there is no infringement.

Considering the first ground, in an action in form ex delicto, — ■ that is, for a tort, — the rule is, all who participate in a wrong are liable. In other words, a tort is the separate act of each individual, and all may be joined, or either may be sued separately. The relation of master and servant — principal and agent — does not relieve from liability. It may make the’ master or principal liable, but it does not release the servant or agent.

“An agent or servant,” — I read from 1 Chit. PI. p. *84,—“an agent or servant, though acting bona fide under the directions and for the benefit of his employer, is personally liable to third persons for any tort or trespass he may commit in the execution of the orders he has received. Xf tlie master has not the right or power to do the act complained of, he cannot delegate an authority to the servant which will protect the latter from responsibility. Therefore a servant may be charged in trover, although the act of conversion be done by him for his master’s benefit. And a bailiff who distrains is liable, if the principal has no right of distress. And a customhouse officer may be sued for a wrongful seizure made by him in that character. There is no injustice iu this doctrine, as regards the servant; for, if the act were not manifestly illegal, the indemnity of the principal to the servant against the consequences is not illegal, and will, in many instances, be implied.”

What is the nature of an action for an infringement of a patent? Undoubtedly a tort, and the rule necessarily applies, unless the statute relieves from it. The statute says: “That damages for the infringement of any pa tent may be recovered by action on the case. * There is no obscurity as i.o what this means. An action on the case is a well-known action in form ex delicto. Judge Lowell, in Nickel Co. v. Worthington, 13 Fed. 392, says: “Infringement is not ¡i trespass.” He evidently did not mean it was not a tort, and the distinction he made between trespass and case — which was tlie common-law one — did not justify the learned judge in applying the law of torts to one and exempting the other. Trespass and case are both forms of action ex delicto; both brought for torts, — Ihe 'first those committed by force and immediately; the second, those not committed with force, or not immediately. The rule as to participants and parties applies to both. The inquiry necessarily is, who are participants in an act of infringement in making or using or selling the patented article? Regarding cases alone, they are neither, abstractly considered, clear, nor, comparatively considered, harmonious. Robinson on Patents says (section 912):

“How far the officers, stockholders, and employes of a private corporation p:n ricipato in its infringing acts, and thereby share its liability, is still an open question. That they may be enjoined whenever this is necessary to protect the patentee against future infringements is universally conceded; but whether they can be held in damages for past infringements has been variously decided. One opinion, following the doctrine of limited liability as usually applied to private corporate bodies, regards the infringing act as tlie act of the corporation alone, and declares that none of its members or officials legally participate therein. Another, affirming the rule that every voluntary [206]*206perpetrator of a 'wrongful act of manufacture, use, or sale is an infringer, considers its directors, agents, and other servants, actually employing or authorizing the employment of the patented invention, as guilty of the infringement, and personally answerable to the patentee. A third, viewing the acceptance of the benefit of the infringing act as furnishing the test of liability, treats its stockholders as infringers, whether or not they are its officers or agents, and exempts the latter, unless they are also members of the corporation. The first opinion is scarcely consistent with a due regard to the rights of the patentee, whose invention might then be practiced with impunity by an insolvent corporation, nor with the general tenor of the patent laws, which permit no voluntary and unauthorized act of manufacture, use, or sale, direct or indirect, to pass unpunished. The third confuses the benefit derived by the stockholders with that accruing to the corporation,— the benefit of the former being no more closely related to the infringement than that of creditors or innocent employes, or that of dealers in or users of the products of infringing processes, — and is pregnant with evil and unjust consequences to all members of private corporations, especially to- minorities who neither acquiesce in the infringement nor in the appointment of the officers or agents by whom it is committed. The second is in harmony Avitb other doctrines of the law, sufficiently protects the patentee, and justly punishes those whose willful acts place them on the same footing with individual infringers, ruder this opinion, all agents who perform acts of infringement, and all stockholders, directors, and other officers who, in the prosecution of the business of the corporation, authorize them, participate in the infringement, and are personally responsible to the patentee.”

The learned author’s conclusion is certainly in harmony with the law of the liability for torts of misfeasance. See Cooley, Torts, 133 et seq. A strict application of the rule would make all servants liable, but a distinction has obtained between mere workmen and agents. The- distinction may be artificial and arbitrary, and though starting apparently in a dictum of Judge Hopkinson in Delano v. Scott, Gilp. 489, Fed. Cas. No. 3,753, and based upon consequences somewhat fanciful, neA’ertheless seems to have maintained itself, and is as firmly established -as nisi prius decisions can establish any rule of law. With this exception, the rule is, both on principle and authority, that servants and agents are responsible. Estes v. Worthington, 30 Fed. 465, and cases cited; Rob. Pat. § 920, and notes; National Car-Brake Shoe Co. v. Terre Haute Car & Manuf’g Co., 19 Fed. 514. It is not necessary to review all the cases. They are classed in the quotation from Rob. Pat., supra. What acts of participation in infringement, if there was infringement, did the defendant perform? In his answer he says:

“That during more than tAvelve years last past the said corporation, the Singer Manufacturing Company, has had and maintained a place of business in the city of San Francisco, in the said Northern district of California, Avhere it has carried on a local business in selling the said Singer sewing machines, and which machines it has sent from its factory in New Jersey to said city of San Francisco for that purpose.

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Bluebook (online)
68 F. 201, 1895 U.S. App. LEXIS 3455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cramer-v-fry-circtndca-1895.