Haskins v. Ryan

64 A. 436, 71 N.J. Eq. 575, 1 Buchanan 575, 1906 N.J. Ch. LEXIS 35
CourtNew Jersey Court of Chancery
DecidedAugust 10, 1906
StatusPublished
Cited by13 cases

This text of 64 A. 436 (Haskins v. Ryan) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haskins v. Ryan, 64 A. 436, 71 N.J. Eq. 575, 1 Buchanan 575, 1906 N.J. Ch. LEXIS 35 (N.J. Ct. App. 1906).

Opinion

Stevens, V. 0.

To the bill in this case a general demurrer is pleaded. The bill alleges, in substance, that during the years 1898 and 1899, ] 900 and 1901, the complainant devoted a large part of his time to the study of industrial conditions connected with the output of pig lead in the United States, and had conceived the plan of [576]*576uniting the outstanding lead interests, which had not already become a part of the National Lead Company, into one company, and had either procured options thereon or had opened negotiations for their purchase; that in the spring of 1891

“he had crystallized and formulated a complete plan for the combination of the white lead industries in the United States not already in the National Lead Company; that he laid such plan before the defendant, a capitalist; that he sought his co-operation and aid, and himself agreed to contribute, if necessary, as much as $200,000, if the defendant would join him therein, and also contribute enough to carry the enterprise through.”

The bill alleges further that defendant, to quote from the bill,

“expressed a willingness to join your orator therein, provided an examination of the plan and papers by the attorneys, and experts of said Ryan Fthe defendant] confirmed the statements of your orator made to him.”

The bill then alleges that the complainant submitted the plan to Ryan’s attorne}r, and was subsequently told by him that he had submitted it to Ryan, and had endorsed it “as comprehensive, feasible and attractive;” that through the efforts of Ryan’s agents, options had been obtained upon most, if not all, of the properties upon which the complainant had options, and that on January 20th, 1903, the United Lead Company was organized as a corporation under the laws of New Jersey, and, under the direction and control of Ryan, proceeded to acquire, and now owns, the interests in nearly all the companies, firms and individuals named in complainant’s plan, and is capitalized with a capital stock of $15,000,000, and has issued bonds for $17,000,000; that in the formation and exploitation of this company, the defendant, Ryan, “has made an enormous profit, the amount of which is unknown to complainant,” and that a combination substantially as planned by complainant has taken place, or is about to take place, with the result of great profits to said Ryan.

The bill then charges that Ryan’s act of availing himself of the information complainant had collected and had only disclosed to Ryan

[577]*577“upon the agreement and understanding on the part of the said Ryan that he would join your orator in the. said scheme and share with him in the profits arising therefrom is contrary to equity,”

but 1 do not understand that by this general charge it is intended to allege any other understanding or agreement than that contained in the stating part of the bill, viz., that Eyan had expressed a willingness to join complainant in his project, provided an examination of it by Eyan’s attorneys and experts should confirm complainant’s statements. The bill asks for a discovery and account of Eyan’s profits and a decree that complainant is entitled to a share of them. Eyan is the sole defendant.

It is perfectly plain that no recovery can be had in this case on the basis of a completed agreement broken by Eyan. The plan, a copy of which is appended to the bill, contemplates the raising of $15,000,000 for the purpose of acquiring the properties of the various concerns, twenty-two in number, other than that of the National Lead Company. The raising of a fund with which to purchase these properties was of the essence of the plan, but complainant had not bound himself to coniribute any definite sum, and Eyan had not bound himself to contribute anything. Even if, without direct. averment, we should infer that an examination of the plan and papers had been made by Eyan’s experts, and that such examination confirmed complainant’s statements to Eyan, nothing more is shown than that Eyan agreed to join in the plan—that is, agreed to enter into a definite and explicit agreement on the subject. But nothing is better settled than that equity will not compel the specific performance of an agreement to make an agreement. Lane v. Calvary Church, 59 N. J. Eq. (14 Dick.) 413; affirmed on appeal.

An account on the basis of a completed agreement is therefore quite out of the question.

As I understand the complainant’s argument, he does not rest his case on any such basis. His contention is this: The plan is my property. The defendant has appropriated it to his own use. I claim an account of the profits arising from its appropriation.

[578]*578If in point of fact the plan has been wrongfully taken or appropriated, the remedy, if any, would appear to be an action on the case for damages, the amount of damages being its fair value. But the plaintiff does not, and in this court could not, demand damages. He asks for a discovery and an account of profits. .

The fact that he has not been able to cite any precedent for the claim he makes is not, of itself, conclusive if he can bring himself within the principle upon which an account is given.

The complainant has undoubtedly the right to claim protection in this court for his manuscript. It would seem that, without any reference to whether the plan is or is not open to the objection that it seeks to create a monopoly (Kerr Inj. 186; Oliver v. Oliver, 11 C. B. (N. 8.) 139), he would have the right to restrain its publication or to prevent its use; and in the case of an author the law does more than protect the manuscript regarded as a material thing of ink and paper. The combination of words .of which it is composed (whether written down, or acted or sung before an audience admitted on payment of a fee) is also protected, and publication is restrained even if the manuscript be destroyed and an attempt be made to reproduce it from a copy rightfully in the possession of another, or even from memory. The work is protected indefinitely, before publication, by the common law (Aronson v. Baker, 43 N. J. Eq. (16 Stew.) 366; New Jersey State Denial Association v. Dentacura Company, 57 N. J. Eq. (12 Dick.) 594; 58 N. J. Eq. (13 Dick.) 582), and for a limited time, after publication, by the statutory law of copyright. The law has never attempted to go beyond this and to .enjoin, for the benefit of the author, after publication, the use of the ideas contained in his work.

In the case of secret processes of manufacturing, the law does, to a certain extent, enjoin the use of ideas. It would, of course, on the same principle on which it affords protection to the unpublished manuscript in the hands of the author, enjoin the publication or exhibition of the paper containing the formula; but it does more. In enjoining the use of the formula it restrains the wrong-doer from putting the idea formulated to practical account. Stone v. Grasselli Company, 65 N. J. Eq. [579]*579(£0 Dick.) 756. The protection ends when the secret becomes known. In the ease of patent rights the statute goes still further. It affords protection for a limited period to a certain class of ideas, known as useful inventions, after the inventor has published them to the world, and because -he has so published them.

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Cite This Page — Counsel Stack

Bluebook (online)
64 A. 436, 71 N.J. Eq. 575, 1 Buchanan 575, 1906 N.J. Ch. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haskins-v-ryan-njch-1906.