Cubic Corp. v. Marty

185 Cal. App. 3d 438, 229 Cal. Rptr. 828, 66 A.L.R. 4th 1115, 1 U.S.P.Q. 2d (BNA) 1709, 1986 Cal. App. LEXIS 2013
CourtCalifornia Court of Appeal
DecidedAugust 27, 1986
DocketD001057
StatusPublished
Cited by16 cases

This text of 185 Cal. App. 3d 438 (Cubic Corp. v. Marty) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cubic Corp. v. Marty, 185 Cal. App. 3d 438, 229 Cal. Rptr. 828, 66 A.L.R. 4th 1115, 1 U.S.P.Q. 2d (BNA) 1709, 1986 Cal. App. LEXIS 2013 (Cal. Ct. App. 1986).

Opinion

Opinion

STANIFORTH, J.

William B. Marty, Jr., appeals a judgment awarding Cubic Corporation $34,102 for Marty’s breach of an invention agreement signed when he began his employment with Cubic, awarding the patent to *444 the invention to Cubic and enjoining Marty from exploiting any rights under the patent or using or disclosing Cubic’s confidential information to others.

Facts

When Marty became a Cubic employee in December 1976, he signed an invention and secrecy agreement (hereafter the Agreement) which provided in pertinent part that the employee agreed: “To promptly disclose to Company all ideas, processes, inventions, improvements, developments and discoveries coming within the scope of Company’s business or related to Company’s products or to any research, design experimental or production work carried on by Company, or to any problems specifically assigned to Employee, conceived alone or with others during this employment, and whether or not conceived during regular working hours. All such ideas, processes, trademarks, inventions, improvements, developments and discoveries shall be the sole and exclusive property of Company, and Employee assigns and hereby agrees to assign his entire right, title and interest in and to the same to Company.”

The agreement also provided the employee would cooperate in obtaining a patent on any such inventions and would not disclose any of Cubic’s secret inventions or processes and would not remove any Cubic records, files, drawings, documents or equipment from Cubic without prior written consent. Under the agreement, Cubic promised to pay all expenses in connection with obtaining a patent, pay the employee a $75 cash bonus upon the employee’s execution of the patent application and an additional $75 if a patent was obtained.

In mid-May 1977, Marty came up with an idea for an electronic warfare simulator (EWS), a device for training pilots in electronic warfare. Marty’s invention had advantages over current training methods which involved the use of very expensive, security-risky, mimic radars. He developed a block diagram in May 1977 and in June 1977 a manuscript describing his invention.

He showed both the diagram and manuscript to Minton Kronkhite of Cubic, representing it might be a new product which Cubic could add to its product for training pilots, the ACMR (air combat maneuvering range). 1 Cubic had had plans to add electronic warfare training to its ACMR but had not yet developed it at the time of Marty’s invention. Kronkhite thought Marty’s invention was a good idea and passed along the manuscript to Hubert Kohnen, another Cubic employee involved with the ACMR. Kohnen *445 also thought the idea was good. He assumed it was another product for the ACMR since Marty had suggested his invention responded to some of the things Kohnen had been talking about. Kohnen made some technical comments on the manuscript. At trial, Marty testified these technical issues were all addressed in the manuscript.

Cubic funded an internal project to study Marty’s invention. Marty used a Cubic computer programmer to help design necessary circuitry. Marty’s background in microprocessors was weak.

Based on the developed invention, Cubic submitted a proposal to the Navy for Marty’s invention under Kohnen’s name. Kohnen told Marty if they got a program from the Navy, Marty would be made the program manager. Cubic did get a government program to study Marty’s invention and Marty was made program manager. Marty was also given a more than average raise.

In June 1978, Marty, without telling Cubic, applied for a patent on his invention. The patent was issued in December 1979. Marty’s patent attorney forwarded a copy of the patent to Cubic and offered to discuss giving Cubic a license under the patent. Cubic took the position the patent belonged to them under the Agreement Marty had signed. Cubic offered to reimburse Marty’s expenses in obtaining the patent if he assigned the patent to Cubic. Marty refused. Cubic told Marty his continued employment at Cubic was contingent on his assigning the patent. Marty continued to refuse and was terminated from his employment at Cubic in early 1980.

Cubic filed a complaint against Marty seeking declaratory relief as to ownership of the patent and alleging breach of contract, confidential relationship and trust, interference with prospective economic advantage and specific enforcement of the secrecy and invention agreement. Marty cross-complained for wrongful discharge, breach of contract, fraudulent misrepresentation, breach of confidential disclosure, copyright infringement, defamation and injunction.

Cubic made a motion for summary adjudication on whether the Agreement covered Marty’s invention. Judge Lewis, after granting a continuance to allow Marty further discovery, granted Cubic’s motion, finding the Agreement was clear in its terms and if valid, then the entire invention and patent came within the Agreement.

Marty filed an amended cross-complaint. Cubic made a motion to strike Marty’s amended cross-complaint, contending it was an attempt to circumvent Judge Lewis’ summary judgment order. Judge Butler, who heard the *446 motion, struck Marty’s causes of actions for declaratory relief and mandatory injunction.

The case proceeded to trial without a jury. Marty defended on the basis the Agreement was an unenforceable adhesion contract and violated certain Labor Code provisions. Marty also sought to defend on the basis of estoppel and waiver, but such defenses were not allowed as impermissibly raising new matter.

The trial court awarded the patent to Cubic and $34,102 in damages resulting from a government withhold on a Cubic contract (subject to a credit to Marty if and when the amount was recovered from the government). The court also enjoined Marty from exploiting any rights under the patent and from using or disclosing to others confidential information owned by Cubic in specific documents.

Discussion

I

Marty contends the summary judgment order was procedurally improper because it purported to decide an issue different from that presented by the motion.

Cubic phrased its summary judgment motion in terms of whether the Agreement “covered” Marty’s invention. The summary judgment order stated the Agreement “conveys by its terms the entire right, title and interest” in the invention to Cubic. (Italics added.)

Marty contends this change was prejudicial to his defense. However, a review of the trial indicates the trial judge interpreted the summary judgment order as determining whether the Agreement applied to Marty’s invention but not the issue of ownership. Thus, even if the summary judgment order technically decided a different issue than that raised in the motion, Marty suffered no prejudice since the trial court interpreted the order as Marty contends it ought to have been framed. 2

*447

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Bluebook (online)
185 Cal. App. 3d 438, 229 Cal. Rptr. 828, 66 A.L.R. 4th 1115, 1 U.S.P.Q. 2d (BNA) 1709, 1986 Cal. App. LEXIS 2013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cubic-corp-v-marty-calctapp-1986.