Finley v. Asphalt Paving Co. of St. Louis

69 F.2d 498, 20 U.S.P.Q. (BNA) 233, 1934 U.S. App. LEXIS 3586
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 19, 1934
DocketNo. 9760
StatusPublished
Cited by2 cases

This text of 69 F.2d 498 (Finley v. Asphalt Paving Co. of St. Louis) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Finley v. Asphalt Paving Co. of St. Louis, 69 F.2d 498, 20 U.S.P.Q. (BNA) 233, 1934 U.S. App. LEXIS 3586 (8th Cir. 1934).

Opinion

WOODROUGH, Circuit Judge.

Sam E. Finley, the owner, and the National Fin-Mix Corporation, an exclusive licensee in a certain territory of patents covering apparatus for and method of preparing bituminous cement aggregate composition, as plaintiffs, brought this suit for alleged infringement of the patents in the usual form against Asphalt Paving Company of St. Louis, defendant. The defendant in its answer pleaded, among other things in bar, a license by contract and estoppel. A motion for advance trial, under Equity Rule 29 (28 USCA § 723), on the defense of license having been sustained, a separate trial on that issue was had, resulting in a decree by the District Court holding that the defendant was a licensee under the patents in suit and, therefore, had not infringed upon any of the rights of plaintiffs under the patents. The court made extensive findings of fact and conclusions of law, and entered its decree that the bill of complaint be dismissed at the plaintiffs’ cost. The plaintiffs appeal and present forty-seven assignments of error.

The court found upon the evidence before it:

That plaintiff Sam E. Finley is the owner and patentee of United States letters patent Nos. 1,462,994, and 1,522,431; that National Fin-Mix Corporation is and was at all of the times herein mentioned an exclusive licensee under the said patents, with certain territorial limitations, and with the right to sublieense the said patents.

The charter of the city of St. Louis provides for the letting of public work, including paving, to the lowest responsible bidder, and the board of public service of that city was the official administrative body having the duty of defining specifications for paving to be paid fox in whole or in part by special assessment against private property; and that prior to April 10, 1931, there were only two mixers constructed under the letters patent installed in St. Louis, one being in the plant of the Central Paving Company, whose stock was controlled by the same person who had [499]*499control of the stock of the plaintiff National Fin-Mix Corporation, and the other in tho plant of the Bridges Asphalt Paving Company. That there were nine responsible contractors engaged in tho asphalt street paving business under contracts let by the city at the time.

7. The plaintiffs wanted to have the board of public service adopt the exclusive specification of asphalt paving materials mixed in a mixer1 and according to the process described in the plaintiffs’ letters patent, and solicited defendant and other asphalt paving contractors in the city to assist the plaintiffs to secure the adoption of such exclusive specification of their mixer and process.

8, 9. The board having invited all the responsible asphalt paving contractors in the city to attend a hearing on the question of the adoption of such specification, the plaintiff corporation and the defendant met, and tho plaintiff corporation represented to the defendant that if it would co-operate with the plaintiffs and the said specifications were adopted by the city of St. Louis, defendant could procure from plaintiff corporation a mixer and the right to use the process upon the payment of a deposit of $2,250 when the mixer was ready for delivery, and a rental or royalty of 40 cents per ton for the first fifteen thousand tons and 25 cents per ton for the subsequent amount of mixture prepared on said mixer, the said deposit to be absorbed by a refund or a deduction of 15 cents .per ton on the price of the first fifteen thousand tons, and that such mixer could be furnished within five weeks.

10. The defendant advised that it would not lend its co-operation and assistance in securing the adoption of such specifications unless it was assured that it could obtain the mixer on tho terms represented, ánd demanded that the assurance be reduced to writing, whereupon, the writing was signed and delivered by the corporation to defendant on April 9, 1931, the writing being as follows:

“Mr. L. J. Stiers,
“President Asphalt Paving Co.,
“St. Louis, Mo.
“Dear Sir:
“Confirming our verbal conversation of even date we hereby propose to furnish you with five ton rotary pressure type asphalt mixer on the following terms:
“400 per ton for tho first fifteen thousand tons and 250 ton for every ton of material mixed by said mixer thereafter.
“When said mixer is ready for delivery, a deposit of $2250.00 shall be made with the National Fin-Mix Corp., which amount will he credited to your account and you may deduct 150 per ton from payments until such time as said $2250.00 has been absorbed.
“The above terms will be set forth in a uniform contract if you desire to use this process.
“Yours very truly,
“National Fin-Mix Corp.,
“By C. L. Newbold, Vice-President “CLN :DC
“P. S. It will take approximately five weeks for delivery on the above mixer.
“C. L. Newbold.”

11. The defendant had, less than two years previously, erected a new asphalt paving mixture plant with a so-called “pug-mill” at a cost of about one hundred thousand dollars, and as the city specifications had previously permitted the use of either pug-mill type mixture or rotary pressure mixture, all of the asphalt paving contractors had boon on an equal footing in competition on city work so far as the kind of mixture was concerned, and had competed successfully with the Central Paving Company and Bridges Asphalt Company, using tho Finley rotary pressure mixer.

12. After the plaintiff corporation and tho defendant had come to their understanding and defendant was assured that it could obtain the plaintiffs’ mixer and method, and on April 10, .1931, the board of public service had its hearing on the question of the adoption of exclusive specifications of plaintiffs’ mixer and process. The members of the board knew at the time and the president of tho hoard announced that only the two plans referred to were equipped to comply with such an exclusive specification and that the other seven responsible contractors were not.

13. The purpose of the hearing before the board was to satisfy the board as to two points: (1) That the adoption of the proposed specification and the letting of contracts thereunder would not result in increased cost to the taxpayers; and (2) that the competitive bidding system would not be interfered with. Representatives of the companies which had the plaintiffs’ mixer stated that the exclusive specification would not result in increased cost of paving work. The other contractors were asked by the president of the board whether, under the exclusive specification, they would be as free to bid in competition in street paving work as theretofore. One of them who owned a large asphalt plant erected at a cost of $85,000, equipped [500]

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Bluebook (online)
69 F.2d 498, 20 U.S.P.Q. (BNA) 233, 1934 U.S. App. LEXIS 3586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/finley-v-asphalt-paving-co-of-st-louis-ca8-1934.