Gillons v. Shell Co. of California

86 F.2d 600, 32 U.S.P.Q. (BNA) 1, 1936 U.S. App. LEXIS 3801
CourtCourt of Appeals for the Ninth Circuit
DecidedNovember 30, 1936
Docket7931
StatusPublished
Cited by63 cases

This text of 86 F.2d 600 (Gillons v. Shell Co. of California) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gillons v. Shell Co. of California, 86 F.2d 600, 32 U.S.P.Q. (BNA) 1, 1936 U.S. App. LEXIS 3801 (9th Cir. 1936).

Opinion

GARRECHT, Circuit Judge.

On February 27, 1930, the appellants filed a bill of complaint against the appellee, asking for an accounting because of the alleged infringement of United States letters patent No. 1,084,080, issued, by assignment, to the appellant Richfield Oil Company. By consent of the parties, the appellant Richfield Oil Company, which had originally appeared as one of the plaintiffs, was ordered by the lower court to be made a party defendant. The appeal has been brought to this court, however, with the title of the cause as it originally was set out in the court below.

The patent purports to deal with “new and useful Improvements in 'Oil-Refining Mechanism,” one of the objects of which is “to provide an apparatus in which a device is employed capable of thoroughly breaking up and separating the oils to be refined, after they have been given a preliminary heating, the portions which are not driven off in vapor being returned and further heated.”

The bill was amended several times. It alleges that, within the six years prior to the filing of the suit, the appellee, which owns and Operates a petroleum refining plant at Martinez, Cal., has infringed and continues to infringe the patent in controversy.

The trial in the court below occupied about 21 days, during which time 27 witnesses gave oral testimony before the chancellor. The court found in favor of the appellee on the grounds of laches and non-infringement, and entered a final decree dismissing the bill. From that decree, the present appeal was taken.

Since the defense of laches alone, if established, is of itself determinative of this case, we will set forth briefly the facts bearing upon that point.

In 1919, eleven years before the instant suit was filed, the United States Department of the Interior published a bulletin entitled “Removal of the Lighter Hydrocarbons from Petroleum by Continuous Distillation, With Especial Reference to Plants in California.” Of this publication, the appellant Gillons, who was the applicant for the patent in suit, made the following comment in an affidavit filed in the court below: “It clearly appears from a consideration of the said Government bulletin, with respect, to the said Martinez plant [of the appellee], that the disclosures therein correspond materially and substantially with the disclosures of the said Gillons patent in suit.”

In 1920, ten years before the filing of the present suit, the case of Shell Company of California v. American Oilfields Company, In Equity, No. B-60, 1 was tried *602 in0the United States District Court for the Southern District of California, Northern Division, at Los Angeles, Cal. That suit was for the alleged infringement of United States patent No. 1,070,361, issued to Trumble Refining Company, assignee, on August 12, 1913. In that case, the appellee herein, which owned the Trumble patent, was suing the American Oilfields Company, which was a user of the Gillons apparatus, for the alleged infringement of the Trumble patent. The court found that there was no infringement. The appellant Gillons attended the hearings and was a witness in that suit. Gillons testified in the instant case that, during the trial of the American Oilfields Case, his suspicions that the appellee herein was infringing his patent were aroused, and that after the decision in that case was rendered, his suspicions “matured or culminated and became fixed.” On this point he further testified as follows: “Upon the filing of this [Oilfields] suit by the Shell Company I became suspicious. During the trial there was nothing occurred to relieve me of that suspicion. After the decision was rendered, I was convinced that it was the same, in other words, was an infringement.”

On June 17, 1921, nine years before this suit was filed, Judge Edward C. Crow, former attorney general of Missouri, and at that time one of the owners of the patent in controversy, sent the following formal notice of infringement to the appellee:

“We call your attention to the fact that the plants operated by you at Coalinga and Martinez, California, infringe United States Letters Patent One Million, Eighty-four Thousand and Eighty (1,084,080) issued on January 13, 1914, and owned by the undersigned and his associates.

“We request that you desist from the use of such plants at once and account to us for the past profits and benefit had by you through the past use of said infringing devices.

“We trust that you will give this matter your immediate attention, otherwise we will be compelled to seek legal relief against you.”

On July 22, 1921, Graham and Harris, a firm of attorneys representing the 'appellee, wrote to Judge Crow, formally denying infringement:

“Referring to your letters of June 17, addressed to our clients, the Shell Company of California and the Roxana Petroleum Corporation, we beg to advise you that we have carefully considered your charge of infringement of the Gillons patent by these companies.

“We have arrived at the conclusion that no plant operated by either of the above named companies infringes the Gillons patent and have so advised our clients.”

Judge Crow sent a copy of his letter of June 17, 1921, to Gillons, but Gillons testified that, up to the moment of giving his testimony, it had always been his understanding that the appellee’s attorneys had “paid no attention whatever” to Judge Crow’s notice. Accordingly, there is no force to the appellant’s suggestion that the appellee’s denial of infringement contributed toward justifying Gillons “in believing that at that time Shell was not using Gillons’ patent.” Indeed, it is somewhat naive to suggest that even Judge Crow, who did receive the letter of denial, was in any way misled by it. In view of his definite charge of infringement and threat of suit, it is not reasonable to suppose that an experienced lawyer would have been lulled into security by the bare denial of the alleged infringer. Judge Crow’s letter was not one of inquiry; it was a direct statement of infringement and a demand for an accounting.

If, as his letter clearly indicated, Judge Crow knew that the appellee was infringing, he should have carried out his threat of seeking “legal relief” when the appellee failed to give “immediate attention” to his request for an accounting.

Judge Crow’s threat of- “immediate attention or otherwise legal relief” having failed, the Gillons patent interests tried again — this time adopting a less hostile tone. On August 6, 1927, John H. Miller, a San Francisco attorney, sent the following letter to the appellee:

“Mr. B. T. Spalding and The GillonsProcess Company have placed in my hands the Gillons patent for treating petroleum oil, with authority to negotiate for sale of the same; or, in default of a sale being made, to prosecute infringers.

“Your Company is the logical one to own this patent, because you already own the Trumble patent. Therefore, I would like to make an appointment with you at your earliest convenience to discuss this-matter. I have full authority from Mr.. Spalding.”

*603 On August 15, 1927, Mr. Miller wrote another letter to the appellee, in an even friendlier vein:

“I am in receipt of a letter from Mr.

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Bluebook (online)
86 F.2d 600, 32 U.S.P.Q. (BNA) 1, 1936 U.S. App. LEXIS 3801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gillons-v-shell-co-of-california-ca9-1936.