D. E. Stearns Co. v. Brashear

145 F. Supp. 735, 112 U.S.P.Q. (BNA) 170, 1956 U.S. Dist. LEXIS 2666
CourtDistrict Court, W.D. Missouri
DecidedAugust 30, 1956
DocketCiv. No. 6673
StatusPublished
Cited by1 cases

This text of 145 F. Supp. 735 (D. E. Stearns Co. v. Brashear) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D. E. Stearns Co. v. Brashear, 145 F. Supp. 735, 112 U.S.P.Q. (BNA) 170, 1956 U.S. Dist. LEXIS 2666 (W.D. Mo. 1956).

Opinion

DUNCAN, Chief Judge.

This matter is before the court on motion for an order holding defendants George B. Wren, Jr., and Pipeline Inspection Co., Inc., in contempt of court for the violation of an injunction issued against the said George- B. Wren, Jr., enjoining Wren from infringing Claim 1 of what is designated as “Stearns Patent No. 2,332,182”-.

On November 22, 1950, the D. E. Stearns Company, a partnership composed of Dick E. Steams and Ellen Bel-son Stearns, filed an action in this court against Lilburn J. Brashear, George B. Wren, Jr., and Mechanical Electrical Development Company, a co-partnership composed of Lilburn J. Brashear and George B. Wren, Jr., alleging that the plaintiffs were the owners of said Patent No. 2,332,182 and that Brashear and Wren, doing business as the Mechanical Electrical Development Company, had, since February 15, 1950, infringed upon Claim 1 of said Letters Patent, by making, using and vending an electrical exploring device, for detecting defects in insulating coating by employing the invention defined by Claim 1 of the Letters Patent.

Thereafter, on May 12, 1952, the parties settled the differences involved in the controversy, and a consent decree in the following language, was entered (Caption omitted):

“First: The Stearns Patent No. 2,-332,182, issued October 19, 1943, is good and valid in law.
“Second: Defendants have infringed upon claim 1 of said patent by the manufacture and lease . or rental of an electrical exploring device employing a rolling coiled spring electrode and pusher assembly identified herein by the trade-name ‘MEDCO’.
“Third: That a perpetual injunction is hereby granted, awarded and decreed to plaintiff against defendants, individually and jointly, their officers, directors, associates, affiliates, agents and servants, and each of them, and any others controlled by them from directly or indirectly — (a) infringing upon said Letters Patent 2,332,182 during the unexpired term of said Letters Patent; (b) making or causing to be made, selling or causing to be sold, using, or causing to be used, leasing, or causing to be leased, any device embodying or containing the invention covered by claim 1 of said Letters Patent without prior agreement with plaintiff or plaintiff’s successors in title to said patent; (c) contributing to the infringement of, or encouraging, inducing, aiding or abetting the infringement of claim 1 of said Letters Patent 2,332,182 in any way whatsoever.
“Fourth: That there shall be no award of damages for past infringement, the parties having settled the matter of damage between themselves.
“Fifth: That each party shall pay its own costs, and that there is no allowance for attorney’s fees of either party.”

[737]*737As a part of the settlement, the plaintiff granted a licensing contract to the defendant Wren, Jr., and Brashear for the making, licensing or selling of the device covered by the plaintiff’s patent.

On May 9, 1952, the defendant Wren, Jr., entered into two agreements with the Stearns Company, under the terms of which the defendant Wren was to pay to the plaintiff certain royalties for the manufacture and sale or rental of the MEDCO or STEARNS device. Sometime prior to July, 1953, the defendant Wren stopped paying royalties, and on July 2, 1953, plaintiff notified the defendant Wren, Jr., that unless the breaches specified were corrected prior to August 1, 1953, the licensing agreements would terminate in accordance with Articles VIII and V of said agreements.

The contract for manufacture, lease or rental, entered into between Stearns and Wren on May 9, 1952, provided among other things, in Article II thereof:

“* * * Licensee hereby acknowledges the validity of the aforesaid Letters Patent and Licensor’s title thereto and agrees not to contest the same, during the life hereof, directly or indirectly.”

The contract for manufacture and sale, executed the same day, contains approximately the same language in Article II thereof. Article IV of the manufacture, lease or rent agreement thereof, further provided:

“IV. In the event that electrode and electrode pusher combinations actually, or such as made, used, leased or rented by Licensee shall be adjudged not to infringe any claim of patent 2,332,182, or shall be covered only by a claim or claims of said patent that have been adjudged invalid by a court of competent jurisdiction, from which judgment no appeal has been taken within the period prescribed by law for such appeal, then the obligations of Licensee hereunder to pay royalties and make reports shall cease until another court of equal authority shall hold said claim or claims valid and infringed, in which event the obligation to pay royalties shall forthwith be reestablished. During any interim that Licensee is not obligated hereunder to report or pay royalties the license shall still otherwise remain in force.”

No such provision is made in the sales contract.

During the time the licensing agreements were in effect, and before the consent decree had been entered, Wren and Frank W. Cummins had been experimenting and working on a holiday detecting device, which ultimately culminated in the accused device, and its manufacture. The partnership was operated under the name of “Pipeline Inspection Co.”

On May 6, 1953, the Pipeline Inspection Co., was incorporated, designating Wren, Jr., as President, the legal work of such incorporation having been done by Frank C. Rayburn, an attorney of Kansas City, who was advising Wren during that time. The incorporators were Wren, Jr., Rayburn and Cummins. The only change made in the name of the company, which had been operating as a co-partnership, was to add the let-' ters “Inc.” The assets of the co-partnership of Wren and Cummins were transferred to the corporation, and it continued in the business of manufacturing, selling or leasing electrical inspection equipment known to the trade as “holiday detectors” under the trade name “SPI”. As a result, Pipeline Inspection Co., Inc., is a party to this controversy.

Following the filing of the motion for an order holding the parties in contempt, the defendant Lilburn J. Brashear did, on October 18, 1954, admit the charge of infringement álleged in the motion, and authorized his attorney to consent to an order holding him in contempt. Pursuant to that admission and request, an order was entered on October 19, 1954-, with respect to the defendant [738]*738Lilbu'rn J. Bfashearl. Therefore, he is not now concerned.in this controversy.

The defendants. Wren,' Jr., and Pipeline Inspection Co., Inc., filed a motion to strike plaintiff’s motion for contempt, first, on the ground that the Pipeline Inspection Co., Inc., was not a party to the original suit, and that the .defendant Wren, Jr., during the period complained of in the motion- for contempt, had not, after August 1, 1953, individually committed any acts of infringement, or in any other way violated the terms of the injunction, acting in all respects as an employee of Pipeline Inspection Co., Inc.

Second, that the device which was being manufactured, sold or leased by Wren, Jr., or Pipeline Inspection Co., Inc., was a different device from the one referred to in the injunction or described in the patent in suit, and that said device was not the equivalent, or a-colorable imitation of the patented device.

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145 F. Supp. 735, 112 U.S.P.Q. (BNA) 170, 1956 U.S. Dist. LEXIS 2666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-e-stearns-co-v-brashear-mowd-1956.