Fauber v. United States

81 F. Supp. 218, 112 Ct. Cl. 302
CourtUnited States Court of Claims
DecidedDecember 6, 1948
Docket41941
StatusPublished
Cited by5 cases

This text of 81 F. Supp. 218 (Fauber 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
Fauber v. United States, 81 F. Supp. 218, 112 Ct. Cl. 302 (cc 1948).

Opinion

LITTLETON, Judge.

This suit was brought under a special act of Congress waiving the statute of limitation, to recover reasonable and entire compensation under the Act of June 25, 1910, as amended, 35 U.S.C.A. § 68, for the unauthorized manufacture and use by defendant of certain patented inventions granted to William H. Fauber. Two patents and several of the claims of each were sued upon. We found and held in the initial proceeding on validity and infringement, 37 F.Supp. 415, 93 Ct.Cl. 11, that claim 4 of patent 1,024,682 was valid and had been infringed and that the other claims sued upon were either invalid or had not been infringed. This patent is directed to and teaches the use of a boat hull provided with hydroplane surfaces which are downwardly and rearwardly inclined and act on the water to lift the hull and lessen its submerged area (findings 3, 4 and 5).

In this proceeding plaintiff contends for the allowance of compensation of $472,992 on the basis of a reasonable royalty of 8% of the cost per hull for 2,354 hulls manufactured and used by defendant, but this claim for an 8% royalty is not sustained, by the evidence of record. (See findings 15-21.)

Upon the report of the Commissioner and the record on accounting, we have found that there were manufactured by or for the defendant and used by it 2,354 infringing hydroplane hulls for use in connection with hydroairplanes, and that a fair and reasonable figure or royalty upon which to base the compensation which should have been paid to plaintiff at the time of manufacture and use is one and one-half percent of the cost per hull, or a total of $88,686. We have further found that the reasonable and entire compensation due plaintiff consists of this sum together with an additional amount, as part of entire or just compensation, measured by a reasonable interest rate of 4% per annum on the annual amounts, computed at 1%% of cost, set forth in the last column of the tabulation in finding 24. Waite v United States, 282 U.S. 508, 51 S.Ct. 227, 75 L.Ed. 494.

*220 Defendant’s counsel make seven contentions in opposition to plaintiff’s right to recover which, we think, are without merit, but which warrant some discussion. It is first contended that the Commissioner was without power or authority on the reference for accounting to determine the compensation due plaintiff, to consider twenty-six types of structures as infringements of claim 4, in addition to the three types considered and discussed on the first hearing which was limited to validity and infringement. This contention is contrary to the well-recognized rule followed in such cases. Flat Slab Patents Co. v. Turner, 8 Cir., 285 F. 257, 272; Marconi Wireless Tel. Co. v. United States, 99 Ct.Cl. 1, 63; Esnault-Pelterie v. United States, 81 Ct.Cl. 785, 811; A. B. Dick Co. v. Marr, D.C., 48 F.Supp. 775, 778. The obvious intent and purpose of Rule 39, Rules of the Court of Claims, 28 U.S.C.A., include the authority complained of and the fact that the second order of reference in this case did not expressly so state is of no importance.

The judgment of the court on the validity and infringement phase of the case was that claim 4 of the second Fauber patent was valid and infringed and that plaintiff was entitled to recover, but entry of judgment would be withheld until the taking of evidence on accounting.

Reference was then made to the Commissioner to determine the amount of compensation due. This the Commissioner proceeded to do by permitting both parties ■to present evidence as to similarity or non-similarity of the group of hydroplane hull structures with the three hull structures found to infringe claim 4. This was clearly the correct procedure.

To limit the Commissioner to the exact type or model designation of the structures selected by the court as an index of infringement and to force plaintiff to present to the court each and every individual accused structure in the initial phase of his patent case would vitiate the purpose of Rule 39, which is to save time and expense.

In giving the parties opportunity to present evidence as to the similarity or dissimilarity of certain other types of structures with the three here selected by the court as indices of infringement, the Commissioner merely followed the usual accounting procedure. In Flat Slab Patents Co. v. Turner, supra [285 F. 272] the court ■said: " * * * An unreal divergence sometimes seems to appear where the defendant has also used a construction differing from the precise one covered by the evidence in the infringement trial. This proposition is loosely expressed as being whether the new construction is an infringement. A more accurate statement would be that it is whether the .new construction is within what the decree has declared to constitute an infringement. * * * The problem of the master, therefore, in ascertaining whether a new construction is to be covered by the accounting, becomes one of comparison between that construction and the one declared to infringe. This comparison is along the line of infringing elements or features. The identity of such elements or features and the respect in which they constitute infringements can be found by the master sometimes in his report or more often in his opinion which may be treated as an explanation of the report. * * * ”

In the accounting procedure the defendant had ample opportunity to present proof as to dissimilarity of the then considered structures with what the court had indicated as a measure of infringement, and it did so. • Defendant’s statutory rights were in no way affected or barred by such procedure. The evidence offered fully supports the Commissioner’s finding, which we have adopted, as to the number of infringing structures manufactured and used by defendant.

The second argument of defendant made for the first time on the accounting hearing, is that there are noninfringing differences between the structures actually manufactured and used and the drawings or preliminary models thereof.

The drawings used in the determination by the court of the question of infringement as to the type HS hull and the NB-1 float (plaintiff’s exhibit 14) were filed by defendant in response to a call issued by the court on the Navy Department. The information accompanying them was as. follows:

*221 So far as the HS-l-L and HS-2-L types are concerned, the hulls of these types are identically represented by the lines of the tank model shown in Bureau of Construction and Repair Plan No. 467.

The floats of the NB-1 seaplanes are clearly represented by Bureau of Aeronautics Plan No. 3863.

Tracing's in exact agreement with these drawings were further filed in a stipulation dated April 22, 1939, in which it was agreed by the parties that the drawings forming a portion of such stipulation were, respectively, accurate tracings of the HS or HS-1 seaplane and the NB-1 float.

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81 F. Supp. 218, 112 Ct. Cl. 302, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fauber-v-united-states-cc-1948.