McClaskey v. Harbison-Walker Refractories Co.

138 F.2d 493, 59 U.S.P.Q. (BNA) 252, 1943 U.S. App. LEXIS 2554
CourtCourt of Appeals for the Third Circuit
DecidedOctober 25, 1943
Docket8155
StatusPublished
Cited by31 cases

This text of 138 F.2d 493 (McClaskey v. Harbison-Walker Refractories Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McClaskey v. Harbison-Walker Refractories Co., 138 F.2d 493, 59 U.S.P.Q. (BNA) 252, 1943 U.S. App. LEXIS 2554 (3d Cir. 1943).

Opinions

BIGGS, Circuit Judge.

The question presented by this appeal is whether a United States patent may be as- ■ signed to a purchaser who purports to buy it at a sheriff’s sale, the patent having been seized on an alias writ of fieri facias issued under Pennsylvania statutes on a judgment entered in the Court of Common Pleas of Allegheny County, Pennsylvania. ■

The pertinent facts may be stated briefly. The patent, No. 1,525,328, was issued on February 3, 1925, to Sheaffer and shortly after its issuance was assigned1 by the patentee to Superior Basic Brick Company. In 1933, Duquesne Light Company obtained a money judgment against Superior in the Court of Common Pleas of Allegheny County which it assigned to the plaintiff, McClaskey. Certain physical assets of Superior were seized under a writ of execution, issued by Duquesne to the use of Mc-Claskey to recover the sum due on the judgment. The proceeds of this sale were credited against the amount due from Superior to McClaskey on the judgment. A writ of fi. fa. was then issued to seize certain other property. Thereafter an alias fi. fa. was issued against Superior, and the directions of counsel to the sheriff accompanying the praecipe for the writ directed that officer “ * * * to levy, advertise and sell in satisfaction of the * * * balance of [the] judgment * * * letters patent * * * No. 1,525,328 * * * The sheriff sold the patent to McClaskey and gave him a bill of sale.

McClaskey brought suit in the court below alleging that the defendant, Harbison-Walker Refractories Company, has infringed the patent. The plaintiff does not seek an injunction but claims treble damages as provided by R.S. § 4919, 35 U.S. C.A. § 67. The defendant asserted as one defense that the plaintiff got no title to the patent under the sheriff’s sale and moved for a summary judgment dismissing the complaint pursuant to Rule 56 of the Rules of Civil Procedure, 28 U.S.C.A. following section 723c. The court below granted the motion and dismissed the complaint. See 46 F.Supp. 937, 938.

Under R.S. § 4898, 35 U.S.C.A. § 47, a patent may be transferred by the “patentee or his assigns or legal representatives” “by an instrument in writing”. In the leading case of Ager v. Murray, 105 U.S. 126, 26 L.Ed. 942, the facts were as follows: The Supreme Court of the District of Columbia, acting pursuant to chancery powers conferred upon it by a statute of the State of Maryland, in force in the District of Columbia (Maryland Stat., 1785, ch. 72, Secs. 7, 13, 25; 2 Kilty’s Laws; Laws of District of Columbia Ed. 1868, pp. 326, 328, 333, 336) directed that patents belonging to Ager should be sold and the proceeds of [495]*495the sale applied to pay a judgment against Ager. The degree of the Supreme Court of the District of Columbia provided specifically that if Ager defaulted in paying, the judgment, his rights in the patent should be sold and an assignment should be executed by him, but that if he failed to execute such an assignment, a suitable person should be appointed as trustee to execute it.

On appeal Mr. Justice Gray stated, 105 U.S. at page 129, 26 L.Ed. 942, “It has been said by an English text-writer that ‘a patent-right may be seized and sold in execution by the sheriff under a fieri facias, being in the nature of a personal chattel.’ * * * We are not aware of any instance in which such a course has been judicially approved. But it is within the general jurisdiction of a court of chancery to assist a judgment creditor to reach and apply to the payment of his debt any property of the judgment debtor, which by reason of its nature only, and not by reason of any positive rule exempting it from liability for debt, cannot be taken on execution at law; as in the case of trust property in which the judgment debtor has the entire beneficial interest, of shares in a corporation, or of choses in action.” In view of this decision of the Supreme Court of the United States we can entertain no doubt that a patent may be reached and sold by a creditor’s bill. Though there is no express statement in the Ager case that the trustee who was to. be employed to assign the patent if Ager failed to do so, would have been a “legal representative” within the meaning of R.S. § 4898, this is clearly what the Supreme Court of the District of Columbia and the Supreme Court of the United States had in mind, for the patent otherwise could not have been legally assigned under R.S. § 4898.2

In the case of Cookson v. Louis Marx & Co., D.C., 23 F.Supp. 615, the question was presented as to whether an assignment of a patent by a conservator for one who has been legally declared a spendthrift would stand against an assignment made by the spendthrift himself. Judge Patterson stated, 23 F.Supp. at page 617, “The patent act provides that patents are assignable in law by instrument in writing * * *. This does not mean that the patentee must m every case execute the assignment by his own hand. On creditor’s bill a court of equity may appoint a trustee to make an assignment of a debtor’s patent right in case the debtor himself does not make the required assignment, and an assignment executed by the trustee will pass title to a purchaser * * *. There can be no doubt that legal capacity to make an assignment of patent and the aids to incapacity are matters which Congress might have regulated but which it chose to leave to the law of the state of the assignor’s domicile * * *. By law of Illinois a person who is legally declared to be a spendthrift has no capacity to transfer his property. The conservator of such a person has authority to transfer personal property without specific order of the court.”

The term “legal representatives” used in R.S. § 4898 is broad enough not only to include a master or a trustee appointed by a court possessing adequate equity power but also a trustee under a trust indenture, a guardian of property, or an executor or administrator, an assignee of an insolvent debtor, or some other officer designated to assign a patent. The tests are the powers of the court and the extent of the authority conferred by it on its officer. In the present state of the law, the authority to assign a patent must come from some proceeding akin to a creditor’s bill or a petition seeking the aid of the equity side of the court to enforce a judgment at law, through the appointment of a legal representative. Our inquiry, therefore, must be directed to the question as to whether the Court of Common Pleas of Allegheny County possessed the equitable power to assign the patent to McClaskey by the sheriff at the sale we have described.

It is well settled that the courts of Pennsylvania possess no general equitable jurisdiction. This was stated by President Judge Stowe of the Court of Common Pleas of Allegheny County in Bakewell & Kerr v. Keller, 1881, 11 Wkly. Notes Cas. 300. Judge Stowe said, “I have no doubt that in England, and in the courts of the United States, where there is general equity jurisdiction such a bill [a bill to subject a patent right to sale for the satisfaction of a judgment] would be sustained; but [496]*496in Pennsylvania, we do not have any equitable jurisdiction except where it is specifically granted (Dohnert’s Appeal, 64 Pa. 311), and we must therefore look to the Constitution and the various Acts of Assembly to determine our authority, and not to the general powers of a Court of Chancery.”3

Jurisdiction in the case at bar lies in Section 24(7) of the Judicial Code, 28 U.S.C.A. § 41(7), and not in diversity of citizenship.

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Bluebook (online)
138 F.2d 493, 59 U.S.P.Q. (BNA) 252, 1943 U.S. App. LEXIS 2554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclaskey-v-harbison-walker-refractories-co-ca3-1943.