Leathers' Sons v. Goldman

252 F.2d 188, 116 U.S.P.Q. (BNA) 219, 1958 U.S. App. LEXIS 5906
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 6, 1958
Docket13180_1
StatusPublished
Cited by1 cases

This text of 252 F.2d 188 (Leathers' Sons v. Goldman) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leathers' Sons v. Goldman, 252 F.2d 188, 116 U.S.P.Q. (BNA) 219, 1958 U.S. App. LEXIS 5906 (6th Cir. 1958).

Opinion

252 F.2d 188

116 U.S.P.Q. 219

L. M. LEATHERS' SONS (a partnership), Appellant,
v.
Maurice GOLDMAN, an individual and Maurice Goldman, d/b/a
and under the firm name and style of Goldman
Manufacturing Company, Appellee.

No. 13180.

United States Court of Appeals Sixth Circuit.

Feb. 6, 1958.

Francis C. Browne, Washington, D.C. (Arthur C. Beaumont, Detroit, Mich., on the brief), for appellant.

Bernard J. Cantor and Daniel G. Cullen, of Cullen & Cantor, Detroit, Mich., for appellees.

Before SIMONS, Chief Judge, and MILLER and STEWART, Circuit Judges.

SHACKELFORD MILLER, Jr., Circuit Judge.

The appellant is the owner of Tufts Patent No. 2,590,738 issued March 25, 1952, described as a 'Slip-Resistant Pants Guard for Coat Hangers.' In the use of wire coat hangers the horizontal bar over which trousers or a skirt is folded causes a crease in the material of the folded garment. In addition to the crease, there exists the problem of preventing the garment from sliding on the bar, either longitudinally or transversely to it. If the sliding is transverse the garment falls from the hanger; if longitudinal the garment is left wrinkled where its creased edges encounter the bend of the hanger. Different types of pants guard on the horizontal bar have been used to eliminate the problem. The patent application states that none of these have proved to be completely satisfactory from the standpoint of function, application and economy. The single claim of the patent is for an article of manufacture and sale comprising an improved 'pants grard' having 'a film of non-sticky, permanently tacky latex material covering a sufficient area of the upper garment-contacting surface of the body (of the guard) to resist free sliding of a garment hanging thereon.'

Appellant brought this action on August 21, 1953, against appellee for infringement. Appellee by answer denied the validity of the patent and also infringement. The appellee also filed a counter-claim for a declaratory judgment holding the patent invalid and that there was no infringement.

On April 6, 1954, the parties entered into an agreement by which appellant agreed to give appellee a free, non-exclusive, irrevocable license under the patent-in-suit in return for appellee's dismissal of its declaratory judgment counterclaim and stipulation of a consent judgment and injunction. Judgment was entered on April 26, 1954, pursuant to the stipulation, adjudging the patent valid and infringed, and an injunction was issued pursuant to the judgment on April 28, 1954. However, no license was ever issued to appellee, nor has appellee ever filed suit to compel specific performance under the contract.

Thereafter, appellant began notifying appellee's trade that appellee was not a licensee, that appellee was violating the court injunction and that those customers who chose to buy nonskid trouser guards from the appellee did so at their peril. In May 1955, appellant filed a patent infringement suit in the District Court in Cincinnati, Ohio, against appellee's largest distributor, Sigmund Sachs of Cincinnati.

On June 14, 1955, appellee filed its motion in the present suit which, as revised on November 4, 1955, asked that the court (1) enjoin appellant from prosecuting the suit against Sachs, (2) enjoin appellant from harassing appellee's customers, potential customers and distributors, and (3) in the alternative, to set aside its injunction and judgment entered April 26, 1954, and to set an immediate trial of the action. Appellant stated in its brief of August 1, 1955, 'Leathers consents to the granting of the motion to set aside the injunction and judgment and hereby stipulates that it may be set aside,' reserving the right, however, to proceed against Sachs for any acts of infringement involving the manufacture or sale of infringing articles which had not been obtained by purchase from the appellee. In its brief of November 11, 1955, appellant incorporated by reference its brief of August 1, 1955. However, by brief of November 14, 1955, appellant argued, without mention of the 'stipulation' in the earlier beief, that the consent decree should not be set aside and that Rule 60, Rules of Civil Procedure, 28 U.S.C.A., did not authorize such action. The District Court was of the opinion that in the interest of justice the consent judgment of April 26, 1954, and the accompanying injunction should be set aside because of the obvious confusion as to the intention of the parties in connection with the stipulation of April 26, 1954, pursuant to which the judgment was entered. On February 15, 1956, an order was entered to that effect which also directed that the action be set for early trial.

Following a trial, the District Judge ruled that there was nothing in the Tufts combination which contained the ingredients of an invention and entered an order dismissing the complaint. The court's opinion is reported at L. M. Leathers' Sons v. Maurice Goldman, etc., D.C., 148 F.Supp. 183.

Appellant contends that the District Court erred in setting aside the consent judgment and injunction more than a year and a half after entry of the judgment and service of the injunction and thereafter compelling a trial on the merits. Ackermann v. United States, 340 U.S. 193, 71 S.Ct. 209, 95 L.Ed. 207. Rule 60(b), Rules of Civil Procedure, provides that the court may relieve a party from a final judgment for certain enumerated reasons, one of which 60(b)(6), is 'any other reason justifying relief from the operation of the judgment.' With respect to some of the reasons the motion must be made not more than one year after the judgment, but with respect to 60(b)(6) it must be made within a reasonable time. Appellant argues that the proper procedure was not to set aside the judgment but to recognize the judgment as agreed to by the parties, in which event appellee would have the right to proceed against the appellant under the contract upon which the judgment was based, obligating appellant to grant appellee a free irrevocable license. Rule 60(b)(6) vests power in the court to enable them to vacate judgments whenever such action is appropriate to accomplish justice. Klapprott v. United States, 335 U.S. 601, 614-615, 69 S.Ct. 384, 93 L.Ed. 266. We are of the opinion that the action taken by the District Judge was more in furtherance of justice between the parties than that urged upon us by appellant. The entry of the consent judgment was obtained by the promise that it would grant appellee a free license. The refusal on the part of the appellant to carry out its part of the contract by which the judgment was obtained fully justified the Court in taking appropriate action to restore the parties to their status quo prior to the execution of the agreement. United States v. Jordan, 6 Cir., 186 F.2d 803, 805-806, affirmed 342 U.S. 911, 72 S.Ct. 305, 96 L.Ed. 682. Such action lies within the discretion of the trial judge. We find no merit in appellant's contention that the District Judge abused its discretion in so doing.

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252 F.2d 188, 116 U.S.P.Q. (BNA) 219, 1958 U.S. App. LEXIS 5906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leathers-sons-v-goldman-ca6-1958.