Hise v. Grasty

166 S.E. 567, 159 Va. 535, 1932 Va. LEXIS 215
CourtSupreme Court of Virginia
DecidedNovember 17, 1932
StatusPublished
Cited by4 cases

This text of 166 S.E. 567 (Hise v. Grasty) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hise v. Grasty, 166 S.E. 567, 159 Va. 535, 1932 Va. LEXIS 215 (Va. 1932).

Opinion

Campbell, C. J.,

delivered the opinion of the court.

At the February Kules, 1930, W. D. Snyder filed his bill in chancery against James P. Hise and John Hise, for the purpose of subjecting certain lands, situated in Augusta county, to the payment of a judgment against John Hise in the principal sum of $875, with interest thereon from the 9th day of February, 1928. After the institution of the suit by Snyder, John Hise was adjudged a bankrupt, and J. S. Grasty, trustee, was by decree permitted to file his [537]*537petition in the cause, and became party plaintiff in the place and stead of W. D. Snyder.

It appears from the record that John Hise, a resident of Highland county, was engaged in manufacturing and' selling a collapsible bed spring; that in the year 1928 John Hise became insolvent; that on May 19, 1928, and February 28, 1929, James P. Hise (the son of John Hise), made application to the United States Patent Office, for the issuance of patents covering improvements upon the bed spring originated by John Hise. In due time patents were granted to James P. Hise, and said patents were by him sold to a corporation formed for the purpose of manufacturing the bed springs, in which conveyance John Hise joined at the instance of the corporation. The proceeds derived from the sale of the patents were invested in real estate situated in Augusta county, title being taken in the name of James P. Hise.

The bill alleges, in substance, that while James P. Hise was the holder of the legal title to the patents, “the brains and ingenuity of John Hise were responsible for the product covered by the patents,” and that the proceeds thereof were invested by direction of John Hise in the real estate in the name of James P. Hise, for the sole purpose of hindering, delaying and defrauding the creditors of John Hise.

The prayer of the bill is, that James P. Hise be declared a trustee of the patents and the proceeds thereof, for the benefit of his father, John Hise, and that the real estate be sold for the purpose of discharging the indebtedness of John Hise.

The answer of respondents denied that John Hise was the owner or inventor of the bed spring, or that he owned any interest in the patents or real estate purchased with the proceeds from the sale of the patents.

The evidence of the complainant was to the effect that John Hise, on several occasions, had declared that he was getting a patent on the bed spring; that the invention was his idea; that he intended to apply for patents in his son’s [538]*538name to prevent his creditors from realizing upon them; that John Hise conducted all negotiations leading up to the sale of the patents, and the purchase of the real estate; that the checks given in payment for the patents, while payable to James P. Hise, were endorsed by John Hise as his attorney in fact; that the money deposited in bank was subject only to the order of John Hise, attorney in fact; and that John Hise lived upon and farmed the real estate and James Hise had denied any interest in the patents or the proceeds thereof.

On the other hand, the evidence of respondents was to the effect that James P. Hise was the originator of the idea which was carried into the patents; that the entire cost of procuring the patents was borne by him; that the real estate purchased with the proceeds from the sale of the patents was his property; and that he permitted his father to live upon it, as he (the father) was without means of his own.

In a written opinion filed with the record, the trial court held that John Hise was the actual inventor of the bed spring; that James P. Hise had no interest in the patents or the proceeds thereof; that there was a secret understanding between the father and the son, that the son was to hold the legal title for the benefit of the father; that the real estate was impressed with a trust in favor of John Hise and subject to the payment of his debts.

We agree with the conclusion of the trial court that all the equities are with the appellee, and it would be a source of gratification if we could dispose of the case as did the lower court, on the conflict of the evidence. As we view the case, no question of fact is involved; the determinative question is purely a legal one.

In the opinion of the trial court it is said: “If John P. Hise originated the idea * * * and gave it over to his son in an unconditional and absolute right, I do not think that the creditors of John P. Hise could have any right to complain, even though the said James P. Hise afterwards had it [539]*539patented and acquired a considerable or great amount of money therefrom.”

In that conclusion counsel for appellee concurs.

The court then arrived at the conclusion that John Hise did not give to appellant the idea originated by him, but that he retained ownership of the idea, and by fraud secured the patents in the name of appellant, for the purpose of defrauding his (John Hise’s) creditors. Following this view, the court held that the “idea” and the patents were impressed with a trust in favor of John Hise (whether an express or resulting trust is not disclosed by the decree), and that the trust enured to the benefit of the creditors.

It is the settled law in Virginia that an idea, though eventually protected by a patent, is not in the remotest sense property.

In Stein v. Morris, 120 Va. 390, 394, 91 S. E. 177, 179, this court quotes with approval the doctrine laid down in Bristol v. Equitable Life Assur, Society, 52 Hun 161, 5 N. Y. S. 131, as follows: “It is difficult to conceive how a claim to a mere idea or scheme, unconnected with particular physical devices for carrying out that idea, can be made the subject matter of property. So long as the originator of the naked idea, whether, germinating under the law of metaphysics, it be regarded as Platonic or Cartesian in its make-up, keeps it to himself, it is his exclusive property, but it ceases to be his own when he permits it tc pass from him.”

It follows, therefore, that the idea could not be impressed with a trust. The question then arises, Can the patent be impressed with a trust? .

In order to impress the patent with an express trust, John Hise must have had an equitable right, title, or interest, in the property; and must have, by express declaration, impressed the property with a trust. It is likewise true that a resulting trust upon property arises out of payment of purchase money, or the equivalent thereof, and not otherwise.

[540]*540The theory of appellee seems to be that John Hise, the alleged inventor, could by contract or agreement with appellant take out the patent in the name of appellant for his benefit, and thus impress it with a trust. Such a theory is untenable, for the reason that under the law of patents no one but the real inventor can obtain a patent, and that a patent issued to an applicant who is not the real inventor is void.

In 22 Am. & Eng. Enc. of Law (2d ed.) p. 346, the rule is thus stated: “Only the first and original inventor is entitled to a patent, subject to the exception, already considered, that certain prior knowledge or use does not constitute an anticipation. A patent to one who is not the inventor of the patented device or who does not claim in the right of the original inventor is void.

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Bluebook (online)
166 S.E. 567, 159 Va. 535, 1932 Va. LEXIS 215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hise-v-grasty-va-1932.