Magnolia Anti-Friction Metal Co. v. Singley

17 N.Y.S. 251, 42 N.Y. St. Rep. 893, 62 Hun 622, 1891 N.Y. Misc. LEXIS 643
New York Supreme Court·Decided December 31, 1891·Published·Cited by 2 cases

Opinions

Daniels, J.

The disposition of this appeal depends upon the consideration and effect of the evidence taken at the trial. By that it appears that the •defendant was the inventor of a process for the production of a metal compound known as “anti-friction metal.” He had manufactured it in small portions, and disposed of the manufacture at different places, but had never entered into any extended or continued business for the manufacture of the metal, and did not appear to be a person financially able to commence or prosecute such business. But it appeared by the evidence, from his conceded habits, that he was incapable of instituting and maintaining this business. The invention was accordingly of but little use or value to himself, and, after an interview with Charles B. Miller at the city of St. Louis, he proceeded to the ■city of Mobile, to enter into an agreement there with Edward C. Miller, a capitalist, for the manufacture and sale of the product of this invention; and at that place, on the 5th of October, 1886, he entered into an agreement by way -of assignment with Edward C. Miller, whereby for a nominal consideration he sold and transferred to Miller all his right, title, and interest in and to this improvement, and the letters patent therefor, when they should be .granted, to be held and enjoyed by the assignee and his assigns as fully and entirely as they would be by the defendant if the assignment had not been made. On the same day a further agreement was entered into between these two persons by which it was agreed that the defendant should assist this assignee in manufacturing and marketing the anti-friction metal, and in consideration thereof the defendant was to receive 10 per cent, of all net profits accruing from the manufacture and sale of the metal. And it was further agreed, if it became necessary for the defendant to devote all his time in assisting to manufacture and market the metal, then the assignee agreed to pay him a fair and remunerative salary for his time, besides the 10 per cent, •of net profits. These agreements were executed in the presence of Price Williams, Jr., who was a judge, and were certified by him; and, after they had been made, the assignee, Edward C. Miller, assigned to Charles B. Miller all the right, title, and interest which he had acquired to the improvement and to the letters patent therefor when they should be granted; and a re[252]*252quest was made to the commissioner of patents to issue such letters to thisassignee.

After these instruments had been executed, and on or about the 3d of December, 1887, the plaintiff was incorporated under the laws of the state of -New York, ostensibly to carry on the business of manufacturing and selling the anti-friction metal; and after that incorporation, and on the 20th of February, 1888, the defendant made a further assignment of the invention to the corporation. By this assignment, and for a nominal consideration, he assigned to the company “the full and exclusive right to said several inventions, as fully set forth and described in the several specifications prepared and executed by me, February 20th, 1888, preparatory to obtaining letters patent of the United States therefor, for the United States and all foreign, countries; and I do hereby authorize and request the commissioner of patents to issue the said several letters patent to the said the Magnolia Anti-Friction Metal Company, as the assignee of my entire right, title, and interest in and to the same, for the sole use and behoof of the said the Magnolia Anti-Frictian Metal Company and its legal representatives.” And on the 23d of the same month a further agreement was made between the plaintiff and the defendant Charles B. Miller, by which the plaintiff assumed the covenants of Edward C. Miller, which were contained in the agreement of the 5th of October, 1886; and thereby it became liable to pay to the defendant for the invention 10 per cent, of the net profits of the business, and a fair and remunerative salary for his time in case it should become necessary for him to-devote that time to manufacturing and selling the metals. On the same day the defendant received the sum of $1,000 in such settlement and discharge of the liabilities of Edward C. and Charles B. Miller to him, and further agreed “to assign and set over unto said company any and all my inventions heretofore made, or which may be by me at any time made, in the composition orinan ufacture of anti-friction alloys or compounds, and to execute all necessary papers in order to secure to said company letters patent of the United States and all foreign countries therefor, as sole assignee of all said inventions: provided, always, that said instruments of February twenty-third, 1888, to said company, for the Magnolia anti-friction metals, shall apply to-all such inventions to be assigned by me, and further covenant not to assist in any way, directly or indirectly, in the manufacture or sale of anti-friction metals in the United States, without the consent of said company. ” And under these several agreements the company acquired a plant and entered upon the manufacture and sale of the metal, and applications were also made under the laws of the United States for patents to secure the defendant’s inventions to the company, and he also entered into the employment of the company, and continued in such employment until about the 4th of June, 1887, when he entered into an agreement with William H. Jewell to secure to Jewell the benefit and advantage of his inventions for the sum of $2u0, to-be used in purchasing fittings, and for the personal use of the defendant, and the sum of $15 per week, together with one-third of the profits of the business. Soon after that the defendant appears to have become dissatisfied with this last agreement, and then made a statement, which has been authenticated by two witnesses, to the effect that he had been defrauded in obtaining that agreement from him, and that when it was executed by him he subscribed it while he was in an intoxicated condition. But the defendant manifested no disposition whatever to aid or assist the company in the manufacture and sale of the metal, but identified himself with the interests of others, and proposed by himself to manufacture and sell the metal in violation of his agreements, to which the plaintiff had. in this manner, by the assignment of Charles B. Miller, succeeded. To restrain this violation of the agreements made by the defendant this action was brought against him by the plaintiff, and by way of relief it was demanded that he, together with the [253]*253other defendants in the action, should be enjoined and restrained from making known the formula or process used in the invention, or from manufacturing or assisting in the manufacture and sale of this article to the detriment and injury of the plaintiff. By way of defense it was alleged in the defendant’s behalf that he had been imposed upon in obtaining from him these several agreements to which the plaintiff had succeeded, and also these which had been made with the plaintiff itself; that he was in an intoxicated condition when the papers were signed by him, and that his signature was obtained by fraud and overreaching him.

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Magnolia Anti-Friction Metal Co. v. Singley, 17 N.Y.S. 251, 42 N.Y. St. Rep. 893, 62 Hun 622, 1891 N.Y. Misc. LEXIS 643 (N.Y. Super. Ct. 1891).

17 N.Y.S. 251 (Magnolia Anti-Friction Metal Co. v. Singley) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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