Federal Welding Service, Inc. v. Dioguardi

184 F. Supp. 333, 125 U.S.P.Q. (BNA) 635, 1960 U.S. Dist. LEXIS 5124
CourtDistrict Court, E.D. New York
DecidedJune 10, 1960
DocketCiv. A. No. 18607
StatusPublished
Cited by2 cases

This text of 184 F. Supp. 333 (Federal Welding Service, Inc. v. Dioguardi) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Welding Service, Inc. v. Dioguardi, 184 F. Supp. 333, 125 U.S.P.Q. (BNA) 635, 1960 U.S. Dist. LEXIS 5124 (E.D.N.Y. 1960).

Opinion

BYERS, District Judge.

The subject matter of this cause is the legal relationship between the parties between 1952 and 1957, shortly after which the litigation was started. The plaintiff manufactured and sold to the defendants during those five years, metal boxes or containers for caskets, and the failure of the defendants to pay for those which were delivered between September and December 1957 and for others which were on hand and ready for delivery, and parts, of the total value of $12,956.-53, constituted the plaintiff’s cause of action.

It was agreed at the trial that the said sum was due to the plaintiff, and accordingly judgment in that amount was agreed to.

Thus the controversy was made to turn upon the counterclaims asserted by defendants and denied by the plaintiff. Adjudication is required as to such matters.

The defendants allege,

A — infringement of their patents No. 2,674,024 and No. 2,812,966,

B — breach of trust and confidence on the part of plaintiff, and

C — unfair competition.

An examination of the record and exhibits indicates that the alleged breach of confidence requires examination at the outset, since its precise elements will largely govern a conclusion as to the balance of equities.

Background.

The plaintiff, prior to 1952, was engaged in producing, among other steel products and such, boxes or containers for caskets. It also rendered services in welding steel and performed other tasks in the general field of steel working.

The defendants — a partnership — for many years prior to 1952, had been selling equipment and supplies used in burials, to undertakers and to other dealers. They also made hardwood and cloth-covered caskets, and dealt in such articles made by others.

During the period immediately prior to June 1952, Orestes A. Dioguardi, Jr., who was defendants’ main witness, concerned himself with the problem of procuring and marketing such a metal container for use in cemeteries where three interments in one grave were permitted, subject to restrictions that had to be observed, namely that the top one should be three feet below the surface of the ground, and the grave itself should be nine feet deep. Obviously this restricted the available vertical space for three interments to six feet, or 72 inches.

The need then was for containers of twenty-four inches in height. That need was created by the regulations of cemeteries, which were well known to all who had occasion to make use of their facilities. There was nothing secret about it.

Orestes became convinced that wooden boxes could be supplanted by metal ones (concrete boxes had been used, but could not be made within the twenty-four inch limit) and that such an article, if made in a form that was pleasing to the eye, could be developed as a profitable item for sale to funeral directors, and to other dealers.

He interviewed Brick, the plaintiff’s president, on the subject in June of 1952, and the outcome of their conversations was the creation of a business arrangement which will be discussed, that began in that month and that continued, as above stated, until the end of 1957.

Orestes applied for a patent on his so-called vault on August 29, 1952 which was granted April 4, 1954; and on certain attached hand-grips, on March 4, 1954 which was granted November 12, 1957. Those are the patents which the plaintiff is charged to infringe.

[335]*335The plaintiff began to manufacture and sell for its own accounts, a twenty-four inch steel vault in 1955, but abandoned the model, and later made and sold its Triad vault, which is the alleged infringing device.

Its conduct in so doing is the alleged unfair competition, which is largely involved in the alleged breach of confidence. Thus the defendants’ causes B and C are so closely related that they can be considered together.

The use of the word “vault” to describe the burial case for a casket, is in keeping with the modern national tendency to employ as a selling argument high-sounding and picturesque nomenclature without regard to the teachings of etymology. It fosters a spirit of exaggeration and inaccuracy, and such has been its effect in the testimony and -advocacy at bar. While a box has sides and a top and a bottom, a “vault” has “side walls,” and a “top-wall,” or “dome,” although we are talking about a metal box that is about 7 feet long, 2 feet high and about 2i/¿ feet wide.

The opinion in Application of Roth, Oust. & Pat.App., 275 F.2d 743, which appeared after briefs in this case had been filed and which dealt with a patent for “Crypt Building Structure,” contains the following:

“ * * * but in this case it was, to say the least, no remarkable discovery to grasp the fact that cemeteries were getting crowded and that it would be desirable to save space. Both the problem and the means were obvious.”

While the foregoing applied to a structure called a crypt for the reception of caskets, the principle is thought to be the same in the case of a grave in which three interments are permissible.

It has been found necessary therefore to resort to a somewhat astringent process in construing the evidence, and in weighing the arguments, in order to arrive at such a decision as the facts seem to render necessary.

Turning now to the cause for breach of trust and confidence, the evidence requires careful analysis:

The original agreement.

Since there is no document containing the terms of the contract, the requirement is to spell it out from what Orestes and Brick testified to; from such written correspondence as has been produced; and from the conduct of the parties to the extent that it may seem to be consistent with one theory or another as to what they probably intended when they established their initial relationship.

It is common ground that Orestes stated to Brick that he had “something that was very important to us, (defendants) that if I divulged anything that I had in mind, could I have his trust and confidence that he would not divulge any of my research that I had put into this— my thoughts.”

Brick’s testimony is generally to this effect. Also: “He gave me no idea of what he had in mind until after I had made a promise to do so.” Clearly this means that he gave his promise to keep confidential Orestes’ ideas and thoughts, without knowing what they would turn out to be.

Then it was that Orestes imparted to Brick his idea that a metal vault having a height of twenty-four inches, to be constructed as he visualized it, could be a profitable article of merchandise for Brick to make exclusively for Orestes, and for the latter to sell.

Orestes further explained that it was to be an open top steel vault, (as distinguished from an air-seal, or an open end box) that would have eye appeal and flexibility. His testimony is:

“I said, 'This is my idea which you are to regard as a secret. It is a 24-inch high top vault, open top, with a flat surface, with hand grips to extend from — I will use the word' “horizontal” — maybe I did not use it at that time — to extend from the top portion of the vault, that would house some sort of a locking device, that would have to be shaped with [336]

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184 F. Supp. 333, 125 U.S.P.Q. (BNA) 635, 1960 U.S. Dist. LEXIS 5124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-welding-service-inc-v-dioguardi-nyed-1960.