May v. Buchanan Co.

29 F. 469
CourtU.S. Circuit Court for the District of Northern Iowa
DecidedNovember 15, 1886
StatusPublished
Cited by3 cases

This text of 29 F. 469 (May v. Buchanan Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Northern Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
May v. Buchanan Co., 29 F. 469 (circtnia 1886).

Opinion

Shiras, J.

In the petition filed in this cause, it is averred that on the fourth day of October, 1859, letters patent, in due form, were issued to one Edwin May for an improvement in the construction of prison cells, and on the fourth day of October, 1873, an extension of said patent for a further term of seven years was duly granted to said May; that in February, 1880, said Edwin May died, in the state of Indiana, and that plaintiff, by proper proceedings had in the probate court, and conveyances executed under the orders thereof, has become and is the owner of all the rights conferred by and growing out of said letters patent to said Edwin May; that between the fourth day of October, 1873, and the same [470]*470day in 1880, the defendant, without right or authority so to do, did make and use sundry apparatus and machinery which infringed upon the exclusive rights secured by said letters patent to said Edwin May, whereby the plaintiff has been deprived of the reasonable royalty upon said infringing apparatus, to the damage of plaintiff in the sum of $3,000.

To this petition a demurrer is interposed, on the grounds that the petion shows on its face that the cause of'action is barred by the statute of limitations of the state of Iowa,—the action having been brought after the expiration of five years from and after the date when the extended patent expired; and because it is not averred that the demand, being for unliquidated damages, had been presented to the board of supervisors, and payment demanded, as required by section 2610 of the Code of Iowa.

This action is brought under the provisions of section 4919 of the Revised Statutes, which enacts that “damages for the infringement of any patent may be recovered by action on the case, in the name of the party interested, either as patentee, assignee, or grantee.” By section 55 of the patent act of 1870 it was provided that “all actions shall be brought during the term for which the letters patent were granted or extended, or within six years after the expiration thereof.” As to causes of action arising after June 22,1874, this limitation was repealed by the adoption of the Revised Statutes, according to the provisions of section 5596 thereof, but, by section 5599, was continued in force as to all causes of action then in existence. If, then, the cause of action in the present case had arisen before June 22,1874, it would be barred by the limitation of six years found in the act of congress of 1870.

The petition avers more than one act of infringement, and as to those committed after June 22, 1874, the question is whether the action to recover for these is or is not subject to the limitation of the state statute. This question has not been finally settled by the supreme court of the United States, and the decisions of the circuit courts are not in harmony. See Walk. Patents, § 477, where the cases are cited and commented upon.

Where, as in this case, the action is based upon the rights conferred by the statute of the United States, then the better rule seems to be that the state statute of limitations, ex proprio vigore, does not apply. The right to a patent, and to the exclusive use of the rights conferred thereby, is wholly of federal creation, and the state cannot either extend or limit the time within which an action for the protection of these rights may be brought under the federal statute. It is, however, within the power of congress to declare that actions brought under the provisions of the United States laws shall be subject to the limitations enacted in state statutes. In other words, congress may adopt the provisions of the state statute, and make the same applicable to actions for the enforcement or protection of rights wholly created by federal legislation, and of which actions jurisdiction is exclusively in the federal courts.

The question is whether congress has thus adopted and made appli[471]*471cable the provisions of the state statute. It is argued that section 721 of the Revised Statutes, which declares that “the laws of the several states, except where the constitution, treaties, or statutes of the United States otherwise require or provide, shall be regarded as rules of decision in trials at common law, in the courts of the United States, in cases where they apply,” should be held to include the state statute of limitations, and to render the same applicable in all cases wherein the United States statute does not prescribe a period of limitations. In the absence of an authoritative construction of this section by the supreme court, it cannot be denied that the extent and scope of the section is in doubt.

In the case of U. S. v. Reid, 12 How. 361, referring to the similar section in the act ef 1789, the supreme court held, “that the language of this section cannot, upon any fair construction, be extended beyond civil eases at common law, as contradistinguished from suits in equity. So far as concerns rights of property, it is the only rulo that could be adopted by the courts of the United States, and the only one congress had the power to establish; and the section above quoted was merely intended to confer on the courts of the United States the jurisdiction necessary to enable thorn to administer the laws of the state.”

In McNiel v. Holbrook, 12 Pet. 84, the court hold that, under this section, the rules of evidence prescribed by the laws of the state were applicable in trials at common law in the United States court; saying that, “indeed, it would bo difficult to make the laws of the state, in relation to the rights of property, the rule of decision in the circuit courts, without associating with them the laws of the same state, prescribing the rules of evidence by which the rights of property must be decided.”

It is manifest that the laws of a state, to be of force, and to control the decision of any court, state or federal, must be laws rightfully enacted; that is to say, laws within the power of the state legislature to enact. The state laws, therefore, which are intended to be included within section 721 of the Revised Statutes, as rules of decision to bo followed by the federal courts, must be laws within the power of the state to enact. The state, having the right to deal with the subject-matter in the way of legislation, can, through its legislature, adopt laws denning the rights of persons in connection therewith; and these laws, creating or defining the rights of persons in the premises, or the rights of property, and the laws providing for the mode of enforcing or protecting these rights, including those prescribing the time within which actions may be brought, and the rules of evidence to be followed, will constitute rules of decision which the courts of the United States must, in dealing with rights thus created, defined, or limited, observe and enforce. But the laws of a state cannot constitute rules of decision, binding and obligatory upon courts of the United States, in matters or rights which are wholly without state control, and wholly within federal control; and the true construction of section 721, therefore, is that it makes applicable as rules of decision in the federal courts those laws of the states which, dealing with subjects within state control, create or define rights in or to property, [472]*472and provide the mode of protecting or enforcing these rights. When iLo.

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Bluebook (online)
29 F. 469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/may-v-buchanan-co-circtnia-1886.