Edward G. Budd Mfg. Co. v. C. R. Wilson Body Co.

7 F.2d 746, 1925 U.S. Dist. LEXIS 1275
CourtDistrict Court, E.D. Michigan
DecidedAugust 1, 1925
DocketNo. 359
StatusPublished
Cited by4 cases

This text of 7 F.2d 746 (Edward G. Budd Mfg. Co. v. C. R. Wilson Body Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward G. Budd Mfg. Co. v. C. R. Wilson Body Co., 7 F.2d 746, 1925 U.S. Dist. LEXIS 1275 (E.D. Mich. 1925).

Opinion

TUTTLE, District Judge.

The bill of complaint herein charge's unfair competition, infringement of a trade-mark “All-Steel” and infringement of four patents. At the time the bill of complaint was filed, plaintiff also filed a motion for a preliminary injunction, and in view of the nature of the unfair competition a preliminary injunction was granted on the patents and trade-mark, as well as under the unfair competition charges, for, although the patents and trademark questions were not given consideration by me on the preliminary hearing, I felt that, in view of the circumstances surrounding this ease, matters should be maintained in statu quo as nearly as possible until the final hearing. After the preliminary motion was disposed of, the case was referred to the master. Tho master found that the defendant had been guilty of unfair competition, and that all claims in suit of the four patents were valid and infringed. He also found that the words “All-Steel” had not acquired a secondary meaning, and that plaintiff was not entitled to trade-mark rights therein, but that in view of the defendant’s wrongful acts the defendants should be enjoined from tho use of such words in connection with its products.

Defendant filed exceptions to the master’s report. No exceptions wore filed by the plaintiff. After defendant’s exceptions were filed, and shortly before this hearing, the plaintiff filed a motion for an order confirming the report of the master. This motion was heard at the time of tho hearing on the exceptions. Plaintiff urged that, since the order referring the case to the master was consented to by both parties, the findings of fact of the master were conclusive upon this court, and that, as the master’s conclusions of law follow his findings of fact, any other conclusions of law are precluded.

It has never been my intention, in referring cases involving patents to the master, to deprive the parties of their right to have me review the master’s findings. It was not my intention, in referring this one to the master, to in effect substitute tho master for this court, and I do not understand that even plaintiff contends that such was the intention of the parties, hut it relies upon the wording of the order on which the reference was made. Although I do not believe that the mere wording of tho order, in the absence of the intention of the parties, should have an effect not intended by the parties or by the court, it is unnecessary to pass upon that phase of the situation, for the questions which I am called upon to review are only those questions which under tho authorities, even in case of a consent order, I have tho right to and should review.

Defendant at the hearing notified the court that it would not press its exceptions to the master’s findings relating to the un[748]*748fair competition branch of the case. This left remaining for the court’s consideration on exceptions only three questions, viz.: (1) The question of validity of the patents; (2) whether defendant’s structure infringed; and (3) whether, in view of the finding that the plaintiff did not have trade-mark rights in the words “All-Steel” (which finding was not excepted to by the plaintiff), under the law the defendant could be restrained from the use of these words in describing its products. -As these three questions are matters of law, not questions of fact, the master’s report is not conclusive upon this court.

The order of reference is as follows:

“By consent of the plaintiff and thé defendant C. R. Wilson Body Company, this cause is referred to William S. Sayres, Jr., standing master in chancery, at Detroit, Michigan, for the purpose of the taking of testimony therein on all issues and on behalf of both plaintiff and the said defendant; the master to report the testimony in full to the court, together with his findings of fact and law.
“It is further ordered that the depositions heretofore taken on behalf of plaintiff shall be considered as having been taken before the master, and the motion brought by the defendant C. R. Wilson Body Company, in connection with the deposition of plaintiff’s witness, Willis B. Wilcox, is hereby referred to the master for an advisory opinion to the court.
“It is further ordered that the costs of the proceedings before the master, including any expenses of the master sitting in this cause outside of Detroit, shall initially be borne equally by the parties, and such expense shall finally be taxed as costs, as the court shall deem just.”

Even if the reference is not by consent, there is every reasonable presumption that the findings of fact by the master are correct. When the reference.is by consent of the parties, while his findings of fact are not absolutely conclusive, they are attended by strong presumption of correctness. Davis v. Schwartz, 155 U. S. 631, 15 S. Ct. 237, 39 L. Ed. 289-293.

Any conelusiveness as to the master’s findings of fact do not extend to findings of law. United States Trust Co. v. Mercantile Trust Co., 88 F. 140-153, 31 C. C. A. 427 (C. C. A. 9); Hattiesburg Lumber Co. v. Herrick, 212 P. 834-842, 129 C. C. A. 288 (C. C. A. 5); Boisot v. Amarillo Ry., 244 F. 838-841 (D. C. Texas).

No dispute arose at the hearing before me as to what is contained in the prior art. It is only the legal effect of the prior art upon the scope and validity of the patents that is in question. Plaintiff relies upon a certain automobile body made by the defendant in its proof of infringement. The construction of this body and the fact that it was made by the defendant are not in dispute. The questions of infringement, therefore, depend upon the scope and validity of the claims. These are questions- of law for the court, not questions of fact. Brothers v. Lidgewood Mfg. Co., 223 F. 359, 138 C. C. A. 460 (C. C. A. 2); Walker on Patents (5th Ed.) p. 259; Singer Mfg. Co. v. Cramer, 192 U. S. 265, 24 S. Ct. 291, 48 L. Ed. 437; Fond du Lac County v. May, 137 U. S. 395, 11 S. Ct. 98, 34 L. Ed. 714; Prepayment Car Sales Co. v. Orange County Traction Co., 214 F. 576, 131 C. C. A. 156; Western Electric Co. v. Robertson, 142 F. 471, 73 C. C. A. 587; De Loriea v. Whitney, 63 P. 611, 11 C. C. A. 355; Burroughs Adding Machine Co. v. Rockford Milling Machine Co. (C. C. A.) 292 F. 550-554 (C. C. A. 7); Heald v. Rice, 104 U. S. 737, 26 L. Ed. 910; Market Street Cable R. Co. v. Rowley, 155 U. S. 621, 625, 15 S. Ct. 224, 39 L. Ed. 284, 287; Hurin v. Electric Vacuum Cleaner Co., 298 F. 76-79 (C. C. A. 6).

The defendant’s right to use the words “All-Steel” also presents a question of law for the court.

Therefore, on the questions which I have to consider, the master’s, report is not binding upon me, although, of course, his conclusions are entitled to careful consideration. I also find that the defendant’s exceptions are sufficiently definite in form for the matters which I am called upon to review.

The master found that the words “All-Steel” had not acquired a.

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Bluebook (online)
7 F.2d 746, 1925 U.S. Dist. LEXIS 1275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-g-budd-mfg-co-v-c-r-wilson-body-co-mied-1925.