Edison Electric Light Co. v. Packard Electric Co.

61 F. 1002, 1893 U.S. App. LEXIS 2979
CourtDistrict Court, N.D. Ohio
DecidedSeptember 6, 1893
DocketNo. 5,141
StatusPublished
Cited by2 cases

This text of 61 F. 1002 (Edison Electric Light Co. v. Packard Electric Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edison Electric Light Co. v. Packard Electric Co., 61 F. 1002, 1893 U.S. App. LEXIS 2979 (N.D. Ohio 1893).

Opinion

RICKS, District Judge.

The complainants in this case ■ file their bill to sustain the validity of the several patents therein set forth, issued to Thomas Alva Edison at the several dates named, and pray for an injunction against the several defendants .named, to restrain them from infringing the aforesaid patents. • The hill ■avers that these patents have been held l» be valid by the United ¡States circuit court of appeals for the second circuit, and by the .various other circuit courts enumerated in the bill. It claims that the title to the patents set forth was duly assigned to the complainants, and offers affidavits establishing the fact that the defendants are infringers.

¡. The first defense set up by defendants’ counsel is that the patents have not been so fully sustained as to make the adjudications in the several cases named conclusive or binding upon this court. I do not understand that complainants insist that these adjudications are absolutely conclusive, but that they are authority of the very highest nature. I understand the rule to be well settled that the judgment of a circuit court in another circuit, while not controlling, ;is entitled to the highest consideration. Mr. Justice Miller states the rale to be thus:

■, ■ ,‘T think that the uniform course of decisions in the courts of the United States, where a previous decision has been had by a circuit court with regard to the validity of a patent, has been to treat it as of the very highest 'nature, and as almost conclusive in an application for injunction in another .case founded on the same patent.”

■ The complainants have established the validity of their pat cm, by. these several adjudications after a protracted litigation extending over several years, and by a very large expenditure of money. To ask this court to go through the labor to pass upon a case involving the same questions of law and fact, and to compel the complainants, in each district where an infringement may take ■place, to incur such additional expenditure of money, would be a •great hardship. I accept the decisions of the several circuit courts named as sufficiently persuasive to authorize me to find the letters patent valid.

'■ The next contention is that there is not sufficient proof of title ¡by assignment of the patents to the complainants in this case. 'The complainants, in their bill, under oath, aver that, proper and Valid assignments of these patents were made. The answer of the defendants under oath is waived. Under these pleadings the 'answer of the defendants is not evidence in their favor as to the favei*ments therein contained. They might have offered affidavits [1004]*1004denying that the title had been transferred by assignment, as claimed in the bill, which would have put the complainants upon their proof as to such assignments. Having failed in this, the averments of the bill control, and upon this point the court must find the proof satisfactory.

The question of infringement is clearly made out, so far as the New York & Ohio Company, its agents, officers, and stockholders are concerned. It is substantially conceded in the answer and affidavits that, so far as the lamp made by that corporation is concerned, the infringement is established as true. But as to the Packard Electric Company the infringement is denied. In the conclusion reached by the court, it is not necessary .to pass upon the question of infringement as to this particular defendant.

The complainants further charge in their bill that the defendants, to embarrass the complainants in their remedies, conspired together, and, intending to inflinge said Edison letters patent under cover of said organization, but for their individual benefit, caused to be organized and incorporated the Packard Electric Company, under the laws of the state of Ohio, and that thereafter, in pursuance of said conspiracy, "and with a view of still further embarrassing your orators,” caused to be organized, under the laws of West Virginia, a corporation known as the New York & Ohio Company, with a nominal capital, and that by combination and collusion the business of manufacturing and selling incandescent lamps, in infringement of complainants’ letters patent, has been conducted by William D. Packard, J. Ward Packard, and J. W. Peale, for their own personal benefit, and for the benefit of the said New York & Ohio Company; and that the said defendants have organized and operated both said corporations, not in good faith, but as an expedient to avoid the legal consequences of their acts in the infringement of said Edison letters patent, which they well knew they were .infringing.

It seems, from the evidence on behalf of the defendants, that the Packard Electric Company, for the more convenient conduct of its business, made a lease of a part of its factory to the New York & Ohio Company for the purpose of enabling it to manufacture incandescent electric lamps. This business has been carried on by the New York & Ohio Company principally through the active efforts of the two Packards before named. Some proof has been offered on behalf of the complainants tending to show' that this lease and business arrangement were a subterfuge and a fraud intended to embarrass the complainants by having the infringement done through an irresponsible and nonresident corporation. Serious allegations of fraud and collusion are made in the bill, which it is not necessary, for the purposes of this case, to determine. The case, upon the evidence before me, will therefore be considered removed from all question of fraud or fraudulent intent, so far as the defendant the Packard Electric Company is concerned. It must rest upon complainants’ right to an injunction against those of the defendants who are infringing its patents while acting as officers, agents, employés, or stockholders of the New York & Ohio [1005]*1005Company. Gan they he enjoined from infringing in a case in which the corporation for which (hey act is nob made a defendant, and is without the jurisdiction of the court? That corporation was created tinder the laws of the state of West Virginia, and, in a patent suit, can only he sued in that jurisdiction. Gan the complainants reach its officers, agents, and stockholders, and procure an injunction against them in this district, without service upon the corporation? If the complainants now prayed for full relief as against them, and asked for an accounting for profits and damages against the officers, agents, and stockholders, without service upon the corporation, and 1hat was now the question under consideration, the case would present greater difficulties. Where the corporation is a defendant, and duly served, its officers and stockholders cannot shield themselves from liability for damages behind their corporation. While its liability may be primary, and while, if solvent, it may be first held accountable, it has been heid no legal defense for stockholders or officers to insist upon such prior or exclusive liability as a shield and protection for their wrongful acts. Tyler y. Galloway, 13 Fed. 477.

But it is insisted that the complainants cannot bring their suit against the officers of a foreign corporation in this district, and by this sort of indirect proceeding accomplish what they could not do by a proceeding directly against the corporation itself. It is true the corporation cannot be sued here. It does not travel from state to state, through its officers, to confer jurisdiction wherever they may he found and served with process.

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Bluebook (online)
61 F. 1002, 1893 U.S. App. LEXIS 2979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edison-electric-light-co-v-packard-electric-co-ohnd-1893.