Larson v. General Motors Corp.

40 F. Supp. 570, 50 U.S.P.Q. (BNA) 455, 1941 U.S. Dist. LEXIS 2993
CourtDistrict Court, S.D. New York
DecidedJuly 11, 1941
StatusPublished
Cited by4 cases

This text of 40 F. Supp. 570 (Larson v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larson v. General Motors Corp., 40 F. Supp. 570, 50 U.S.P.Q. (BNA) 455, 1941 U.S. Dist. LEXIS 2993 (S.D.N.Y. 1941).

Opinion

CONGER, District Judge.

Plaintiffs have sued the defendant for damages on two causes of action; this trial was of the first; with the second we are not concerned, as it is not in issue here, and will not be considered by me, either directly or indirectly. In the second cause of action plaintiffs sue for an alleged submission of an idea to defendant in connection with an alleged novel seating arrangement in an automobile body; that plaintiffs notified defendant of their idea, and that thereafter defendant used plaintiffs’ idea without paying for it.

In the first cause of action the plaintiffs complain that defendant for a long time prior to the commencement of the suit had been infringing plaintiffs’ letters patent No. 1983983, by using it in connection with the automobiles which it manufactured and sold to the public.

Plaintiffs complain that defendant’s conduct was wilful and treble damages are asked in the sum of $12,000,000.

Defendant in its answer denies generally the alleged infringement and as an affirmative defense and counterclaim attacks the validity of plaintiffs’ patent, asking for a declaratory judgment declaring plaintiffs’ patent to be invalid and/or not infringed. Declaratory Judgment Act, § 274d, Judicial Code, 28 U.S.C.A. § 400.

At the outset, and before the actual trial took place there was presented to the Court for determination two questions: (1) the alleged infringement by the defendant; and (2) the validity of plaintiffs’ patent.

At the opening of the trial and before testimony was taken, plaintiffs admitted in open court that they did not claim any infringement on the part of the defendant; they withdrew the first cause of action charging such infringement; they further amended their reply to defendant’s counterclaim, and in and by this amendment plaintiffs admitted paragraphs 31, 32 of defendant’s counterclaim. These are the paragraphs in said counterclaim in which defendant sets forth that it is not and has not been infringing upon said patent; and further, plaintiffs, in open court and before trial, actually offered to allow judgment on the merits to be entered in favor of the defendant and against the plaintiffs on this first cause of action. This would seem at first blush to dispose of the controversy presently before the Court, but there arises the disposition of defendant’s counterclaim.

Plaintiffs concede that on the proof, defendant is entitled to a dismissal on the merits, and contend that plaintiffs are entitled to a dismissal of the defendant’s counterclaim for declaratory judgment on the ground (1) that no actual controversy existed between plaintiffs and defendant with respect to plaintiffs’ patent; and (2) that if there had been one, a complete adjudication of the said dispute will be made [572]*572by the dismissal on the merits of plaintiffs’ first cause of action.

Defendant claims, however, notwithstanding the withdrawal of the first cause of action by plaintiffs, and notwithstanding a decision in favor of defendant and against plaintiffs on the merits, that the counterclaim must be passed upon and may not be dismissed. This, of course, brings into issue the validity of plaintiffs’ patent.

The first question to be decided therefor is whether there was anything for the Court to try after the admission of noninfringement by the plaintiffs, the withdrawal of the first cause of action with prejudice against the plaintiffs, and the offer by the plaintiffs to allow judgment against them on the first cause of action. Does the Court have the right then to try defendant’s counterclaim? Is there an actual controversy between the parties so as to give life to defendant’s counterclaim for a declaratory judgment?

A controversy in this sense must be one that is appropriate for judicial determination. The controversy must be definite and concrete, touching the legal relations of parties having adverse legal interests. It must be a real and substantial controversy admitting of specific relief through a decree of a conclusive character as distinguished from an opinion advising what the law would be upon a hypothetical state of facts. Aetna Life Ins. Co. v. Haworth, 300 U.S. 227, 57 S.Ct. 461, 81 L.Ed. 617, 108 A.L.R. 1000.

Certainly, prior to the commencement of this action, there was such a controversy. On February 8, 1934, plaintiff Larson wrote to defendant telling of his invention, and gave a description thereof. On February 20, 1935, both plaintiffs wrote to defendant giving it notice of the patent No. 1983983, and again describing it. On June- 6, 1935, Larson again wrote to defendant and in this letter charged that he, Larson, had seen the patented idea in use on one of defendant’s automobiles, an Oldsmobile Club Coupe. On February 23, 1937, plaintiffs’ attorney wrote to defendant in which letter are these two significant statements:

“Referring to your use of auxiliary or ‘middle seats’ in coupe automobile bodies, it is clear your use of same has been infringement of patent No. 1983983, issued to Louis Larson and Edward Johnstone. * sjc >{c

“I would like to inquire now what you propose to do to adjust damages for the infringement of this patent before legal action is taken.”

Certainly, at this point, there was a real controversy between the parties, and the seeds of a controversy at this time had sprouted to such an extent that the Court could take notice of it. The plaintiffs were then charging infringement by the defendant and threatened action. I am satisfied defendant at this time could have commenced an action under the Declaratory Judgment Act for an adjudication of its rights against the present plaintiffs as to the matter in controversy.

In May, 1939, this action was commenced by plaintiffs, and the defendant, very properly in its answer, among other defenses, by way of counterclaim raised the issue of its infringement and validity of plaintiffs’ patent. On the eve of trial, plaintiffs withdrew their first cause of action which, charges infringement. Does this preclude the trial of the counterclaim? I think not. Just a day or two before this trial, Judge Knox of this court passed on this question at a pre-trial conference. There the plaintiffs made the same motion, but Judge Knox refused to sign the proposed order and endorsed on the papers the following: “Upon consideration of plaintiffs’ request that .they be permitted to discontinue their cause of action in this suit and that, thereupon, the counterclaim of defendant be dismissed, I am of the opinion that plaintiffs’ application should have been denied instead of granted. For that reason, I am not signing the within order and plaintiffs’ application for such relief will be denied.”

The counterclaim was properly interposed. The plaintiffs by coming voluntarily into this court subject themselves to the jurisdiction of the court in respect to all possible counterclaims. Dewey & Almy Chemical Co. v. Johnson, Drake & Piper, Inc., D.C., 25 F.Supp. 1021; Kohloff et al. v. Ford Motor Co., D.C., 29 F.Supp. 843. Plaintiffs at this late date cannot withdraw their first cause of action and thus render moot defendant’s counterclaim.

The language of Judge Woolsey, in the case of Knaust Bros. v. Goldschlag, D.C., 28 F.Supp. 188, 190, is pertinent to the situation presented here:

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460 F. Supp. 673 (E.D. Pennsylvania, 1978)
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Bluebook (online)
40 F. Supp. 570, 50 U.S.P.Q. (BNA) 455, 1941 U.S. Dist. LEXIS 2993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larson-v-general-motors-corp-nysd-1941.