George C. Miller & Co. v. Beagen

199 N.E. 344, 293 Mass. 54, 1935 Mass. LEXIS 1301
CourtMassachusetts Supreme Judicial Court
DecidedDecember 31, 1935
StatusPublished
Cited by15 cases

This text of 199 N.E. 344 (George C. Miller & Co. v. Beagen) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
George C. Miller & Co. v. Beagen, 199 N.E. 344, 293 Mass. 54, 1935 Mass. LEXIS 1301 (Mass. 1935).

Opinion

Rugg, C.J.

This suit in equity as amended is brought by a corporation and George C. Miller, its president. The cause of action arises out of a controversy between the corporation and Miller on one side and the defendant on the other side, concerning the conception and invention of a mechanical apparatus or machine to expedite the dipping, cooling and packing of hand-dipped chocolates in connection with a moving belt. The allegations of the bill in substance are that the plaintiff Miller devised a machine of the nature described, of which he made rough sketches and drawings; that he handed these to the defendant, an employee of the plaintiff corporation, and asked him in the course of his employment to construct the machine in accordance therewith; that the defendant, with the help of another employee, constructed such machine which, together with the sketches and drawings, is the property of the plaintiff corporation; that the defendant has taken as his own these plans and sketches and has applied for letters patent on the machine as his own invention. The bill is framed on the theory that the defendant as a former employee of the plaintiff corporation has thus appropriated property and property rights of the plaintiffs in violation' of his fiduciary obligation. It contains prayers, among others, that the defendant be ordered to assign to the plaintiffs all his right, title and interest in his application for letters patent and to the patents issued thereon, and in and to the invention covered thereby, and that he be en[56]*56joined from assigning or granting any right, title or interest in the same and from disclosing the designs and plans of the machine.

The case was referred to a master under a rule requiring him to hear the parties, find the facts, and report his findings with such questions of law as either party might request. He reported findings in detail as to the structure, functions and operation of the machine. Further findings in substance were these: The defendant was employed by the plaintiff corporation as a general mechanic in repairing, altering and constructing mechanical equipment and in supervising such work. He worked with his own hands as well as in directing the labor of others. Both Miller and the defendant had long mechanical experience. No formal plans of the machine were drawn, but rough sketches were prepared by Miller at conferences between him and the defendant, at which both made suggestions. While in the employ of the plaintiff corporation, the defendant worked ■ at times outside the regular factory hours. He worked many hours on this machine outside the usual working time. ' There was no special agreement or understanding between the parties concerning property rights of the defendant in any invention that might be made by him in the course of his employment. There was direct conflict in the testimony of Miller and the defendant and in other evidence. The conclusion of the master was that the idea of the machine was conceived concurrently by both Miller and the defendant, and was jointly and cooperatively developed and perfected, as the construction of the machine progressed, by their combined efforts and experimentation and through conferences and exchanges of thought. The machine was constructed at the factory of the corporate plaintiff in the summer of 1932, and actual production with it began about September 1, 1932. The defendant made an application for a patent on February 21, 1933, but did not sever his employment until April 14, 1933, when for the first time he told Miller that he had applied for a patent. Miller made application for a patent on April 26, 1933. The present bill was filed on April 22, 1933. So far as disclosed [57]*57by this record, no action has been taken on these applications and no patent has been granted for the machine.

No questions of law were reported by the master. The plaintiffs took many objections to the master’s report. They filed a motion to recommit the report for the purpose of securing a summary of evidence relating to the conception of the idea of the machine. That motion was denied and the report was confirmed and interlocutory decrees were entered accordingly. A final decree was entered to the effect that the conception and invention in controversy is the joint property of Miller and the defendant, that each owner be enjoined from transferring more than an undivided half interest in the conception and invention or in any patents issued or to be issued thereon, and that the bill be dismissed as to the corporate plaintiff. From the interlocutory and final decrees the plaintiffs appealed.

There was no error in the denial of the plaintiffs’ motion to recommit the report to the master. The contention of the plaintiffs is that they have a right to a report of a summary of the evidence in order to test whether the finding as to the conception and invention of the machine “is inconsistent with and contrary to the subsidiary findings of fact, and is not supported by the evidence and that the finding is erroneous as a matter of law.” The plaintiffs did not conform to the practice established by Rule 90 of the Superior Court (1932). No stenographer was appointed and no transcript of evidence furnished as required in that rule. Therefore, no summary of the evidence was required. Whether the report should be recommitted rested in sound judicial discretion. Smith v. Butler, 281 Mass. 87. Epstein v. Epstein, 287 Mass. 248, 253-254. Israel v. Sommer, 292 Mass. T13, 119. Cook v. Scheffreen, 215 Mass. 444, 448. Smith v. Lloyd, 224 Mass. 173, 175. There was no abuse of discretion in denying the motion.

The allegations of the bill in effect are that the defendant acquired his knowledge of the machine by reason of his employment by the corporate plaintiff, through information communicated to him by Miller and through plans prepared by Miller and shown to the defendant. Fairly [58]*58interpreted, the bill is designed to seek relief on the ground of a breach by the defendant of his fiduciary relationship to the corporate plaintiff as its employee. There is no allegation in the bill that a patent has been issued to any one. A patent takes effect as of the date when issued and it cannot be antedated. Aronson v. Orlov, 228 Mass. 1, 7. Federal courts have jurisdiction exclusive of the courts of the several States of “all cases arising under the patent-right . . . laws of the United States.” The Judicial Code, 36 U. S. Sts. at Large, 1161, c. 231, § 256, Fifth; U. S. Code, Title 28, § 371, Fifth. There is “a clear distinction between a case and a question arising under the patent laws.” Pratt v. Paris Gas Light & Coke Co. 168 U. S. 255, 259. “The test of jurisdiction is this: Does the complainant 'set up some right, title or interest under the patent laws of the United States, or make it appear that some right or privilege will be defeated by one construction, or sustained by another, of those laws? ’ Excelsior Wooden Pipe Co. v. Pacific Bridge Co., 185 U. S. 282.” Henry v. A. B. Dick Co. 224 U. S. 1, 16. State courts have jurisdiction to prevent or repair breaches of the fiduciary relationship with respect to inventions in the circumstances here disclosed. Aronson v. Orlov, 228 Mass. 1, 8-9. Wireless Specialty Apparatus Co. v.

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Bluebook (online)
199 N.E. 344, 293 Mass. 54, 1935 Mass. LEXIS 1301, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-c-miller-co-v-beagen-mass-1935.