E. W. Bliss Co. v. United States

53 Ct. Cl. 47, 1917 U.S. Ct. Cl. LEXIS 13
CourtUnited States Court of Claims
DecidedDecember 3, 1917
DocketNo. 32838
StatusPublished
Cited by3 cases

This text of 53 Ct. Cl. 47 (E. W. Bliss Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E. W. Bliss Co. v. United States, 53 Ct. Cl. 47, 1917 U.S. Ct. Cl. LEXIS 13 (cc 1917).

Opinion

Campbell, Chief Justice,

delivered the opinion of the court:

The plaintiff, E. W. Bliss Co., brought its action against the United States to recover several sums aggregating $255,000, claimed to be due as “royalties” upon certain patented inventions or compensation for their use by the United States. The defendants have demurred to the amended petition, and have moved to strike separate portions of the same.

The objections presented are (1) that the amended petition does not show a contract between plaintiff and defendant, (2) that it seeks a recovery of damages sounding in tort, or (3) that the case is one of infringement and plaintiff is a mere licensee of the described patents.

Prior to the act of June 25, 1910, 36 Stat., 851, the Court of Claims had jurisdiction in cases involving patents where the claim was based upon express or implied contract and had no jurisdiction in cases claiming compensation for infringement. That act materially enlarged the court’s jurisdiction where the alleged infringement was subsequent to the passage of the act. Certain limitations appear in the act which are not material in the present case.

It is important to observe the distinction between actions for the recovery of royalties or sums claimed to be due for the use by the United States under contract, express or implied, and actions for infringement. There are defenses which are open to the Government when charged with infringement which can not be urged when the action is upon express contract. In the former class the validity of the patent, or whether the patented device exhibits novelty, may be a vital question, whereas in an action upon an express contract no such question is involved.

The court’s jurisdiction in matters of contract is defined by section 145 of the Judicial Code. It has no jurisdiction of damages in cases “ sounding in tort.” It has been definitely settled that the statute inhibits jurisdiction in the court of that class, sometimes called quasi contracts, which involve tort or a breach of a mere duty growing out of the relation of the parties as distinguished from a breach of contract made between them, and which in some jurisdic[54]*54tions are enforceable in actions ex contractu. Where the claim arises out of tort it is not permissible for the plaintiff to waive the tort and sue in assumpsit in this court. These questions have been settled by decisions of the Supreme Court.

In Russell v. United States, 182 U. S., 516, an action had been brought upon an alleged implied contract to pay for the use of a patented invention, and it was held under the facts found that no contract could be implied, and that if petitioners had suffered any injury it had been through the infringement of their patent, not by a breach of contract. “For the redress of an infringement the Court of Claims has no jurisdiction.” That case was decided prior to the said act of June 25, 1910. It was said in Russell’s case:

“ This court has held that under the act of March 8, 1887 (brought forward as section 145 of the Judicial Code), defining claims of which the Court of Claims had jurisdiction, the court had no jurisdiction of demands against the United States founded on torts. Schillinger v. United States, 155 U. S., 163; United States v. Berdan Fire-Arms Co., 156 U. S., 552. In other words, to give the Court of Claims jurisdiction, the demand sued on must be founded on a convention between the parties — ‘ a coming together of minds.’”

A reason for the distinction between the rights of the Government and of an individual defendant when sued upon an alleged implied contract is stated to be that “it is the prerogative of a sovereign not to be sued at all without its consent or upon such causes of action as it chooses. It has not chosen to be sued in actions sounding in tort. This court has declared as we have seen.” Op., p. 533.

It was said in Harley's case, 198 U. S., 229, 234:

“ We held in Russell v. United States, 182 U. S., 516, 530, that in order to give the Court of Claims jurisdiction under the act of March 3, 1887, 24 Stat., 505, ch. 359, defining claims of which the Court of Claims had jurisdiction, the demand sued on must be founded on a convention between the parties ’ — ‘ a coming together of minds.’ And we excluded as not meeting this condition those contracts or obligations that the law is said to imply from a tort. Schillinger v. United States, 155 U. S., 163; United States v. Berdan Fire-Arms Mfg. Co., 156 U. S., 552.”

[55]*55To tbe same effect is Juragua Iron Co. v. United States, 212 U. S., 297, 309. The cases are reviewed in Bighg’s case, 188 U. S., 400, where the petitioner sought to fix a liability upon the Government for personal injuries sustained by the petitioner in an elevator owned by the Government and operated by one of its employees. The theory advanced to sustain the action was that of an implied contract. The court held that the action was necessarily one sounding in tort, and that there was no contract, express or implied, growing out of the facts which could be made the basis for jurisdiction under the Tucker Act of March 3, 1887. It was said by the court, p. 409:

“A party may in some cases waive a tort; that is, he may forbear to sue in tort and sue in contract, where the matter out of which his claim arises has in it the elements both of contract and tort. But it has been well said that “ a right of action in contract can not be created by waiving a tort, and the duty to pay damages for a tort does not imply a promise to pay them upon which assumpsit can be maintained.’ Cooper v. Cooper, 147 Mass., 370, 373.”

The above citations make it clear that it is not every use by the Government of a patented invention that gives rise to an action upon an implied contract to pay for such use. It is only when the facts alleged establish an express or implied contract to pay for such use that the petition is cognizable in this court, aside from the act of 1910. Farnham case, 240 U. S., 537, 540.

As above suggested, the act of June 25,1910, 36 Stat., 851, confers jurisdiction on this court in certain cases of infringement. It may be that the court’s jurisdiction has been further enlarged by later acts of Congress which are not material in this suit.

The purpose of the act of 1910 was to provide a forum where the Government could be sued for infringement by parties bringing themselves within the provisions of the act, “ and the nature and character of the defenses which the statute prescribes may be made by the United States to such an action when brought.” Crozier v. Krupp, 224 U. S., 290, 305. The act prescribes that the Government when sued “ may avail itself of any and all defenses, general or special, which might be pleaded by a defendant in an action for in[56]*56fringement as set forth in Title 60 of the Devised Statutes or otherwise.” The act by no means obliterates the distinction between actions based upon contract, express or implied, and actions for infringement. It may accentuate the difference by a recognition thereof inherent in the purpose of the act to afford a measure of relief to owners of patented inventions which they could not obtain prior to the passage of the said act. Crosier v. Krupp, supra.

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Bluebook (online)
53 Ct. Cl. 47, 1917 U.S. Ct. Cl. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-w-bliss-co-v-united-states-cc-1917.