National Cash Register Co. v. Remington Arms Co.

212 A.D. 343, 209 N.Y.S. 40, 1925 N.Y. App. Div. LEXIS 10431
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 20, 1925
StatusPublished
Cited by4 cases

This text of 212 A.D. 343 (National Cash Register Co. v. Remington Arms Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Cash Register Co. v. Remington Arms Co., 212 A.D. 343, 209 N.Y.S. 40, 1925 N.Y. App. Div. LEXIS 10431 (N.Y. Ct. App. 1925).

Opinions

Merrell, J.:

This action was brought in equity to compel the defendant to assign and transfer to the plaintiff all its right, title and interest in and to two inventions assigned by one Frederick L. Fuller to the said defendant, and to establish plaintiff’s right thereto. The plaintiff based its demand for such assignment upon the claim that such inventions were the property of said plaintiff by virtue of a contract entered into between the plaintiff and said Fuller whereby the plaintiff claims Fuller agreed to assign said patents to it. Fuller was not made a party defendant in the action, but the action was brought against the defendant upon the theory that its predecessor, the Remington-Arms Union Metallic Cartridge Company, whose obligations said defendant had assumed, had employed Fuller with full knowledge that such employment was a violation of the terms of said agreement theretofore entered into between the plaintiff and said Fuller, and that, therefore, the defendant became chargeable with the performance of the latter’s agreements.

On February 17, 1909, Fuller, then a resident of Trenton in the State of New Jersey, entered into a contract in writing with the plaintiff, by the terms of which the plaintiff employed Fuller in the capacity of an inventor “ for a period of one year commencing the 15th day of March, 1909.” The term of Fuller’s employment was stated in the contract clearly and without ambiguity, and under its provisions his term of employment thereunder expired on the 14th day of March, 1910. By the terms of the agreement Fuller was to enter the employment of the plaintiff on said 15th day of March, 1909, and agreed to devote his entire time and attention in the interests of the plaintiff, while the contract was in effect, to inventing and carrying out experimental work as directed by the plaintiff. Therefor he was to receive a salary from the cash register company of $5,000 for said period, payable in monthly installments of $416.67. It was further recited in the contract that since said Fuller while in the employ of said company would be in a position to be intrusted by said company with information regarding many of its mechanical devices, the demands of the future looking to the possible betterment of all of their contrivances and mechanisms incidental to their business, and [346]*346other confidential information relating to inventions and the development of the cash register business, Fuller agreed in part consideration of the wages or salary then or thereafter to be paid to him by said company, that he would transfer, assign and deliver to said company, its successors and assigns, the entire right, title and interest in and to all inventions and patents relating to cash registers, or registering or recording machines, or any sort of mechanisms or devices useful in monetary or accounting transactions, or processes or mechanisms peculiarly useful in the manufacture of the above-enumerated devices, which said Fuller, during the said term of his employment by said company might make or conceive or might acquire, or might assist in making or conceiving or might complete after having possibly conceived previous to his employment by said company, except as to two contrivances expressly excepted from the terms of the contract. Said Fuller also agreed that upon the preparation of any application for a patent upon any one of such devices, he would execute an assignment thereof in the same form or to the same effect as the form of assignment attached to the contract, the terms and provisions of which, by reference, were incorporated as part of the contract itself. With the exception of the two contrivances mentioned in the contract, Fuller further agreed that he was not at that time the owner of any inventions, machines or mechanisms relating to cash registers or registering or recording machines of any sort other than those which he had explained to the plaintiff. It was further provided in the contract that in view of the facts thereinbefore set forth as to the position of trust to be held by said Fuller and the acquisition by him of vital and confidential information regarding the development of the company’s devices and the demands of the future, and since it would be manifestly unfair to take advantage of such information to the detriment of the National Cash Register Company after the termination of his active employment by said company, if “at the end of this contract, he does not wish to longer continue in the employ of said National Company and leaves said National Company, and said National Company being still willing to employ said Fuller at a salary equal to that he is then receiving, then, in this event, he will not, for a period of one year immediately following the cessation of his employment and the severance of his connection with the National Company, enter the services of any other cash register company, as inventor, or be in any way directly or indirectly associated with any such company during such period of one year, and he also agrees to assign and transfer to said National Company any invention in cash’registers, recorders or similar mechanisms which he may make during such period [347]*347of one year following such termination of employment, by executing an assignment in the form of or to the same effect as the attached assignment; and he further agrees that during such period of one year he will, whenever requested by said National Company and whenever reasonable within his power, give to said National Company the benefit of his advice and opinions regarding any of the devices upon which he has worked or kindred thereto, and also his advice and opinion, as a mechanical expert, upon cash register matters, upon being paid therefor by said National Company at a rate exactly corresponding to his rate which was in force at the time of termination of his contract and active employment by said National Company.”

The contract further provided as follows: “ Said National Company agrees that in the event of its terminating the employment of said Fuller at the end of the period of one year covered by said contract, then, in such event,, said Fuller will be free immediately to enter the services of any other cash register company, as inventor, or in any other connection.”

The contract then excepted an adding or listing machine which Fuller had already completed and for the sale of which he had been negotiating with others, it being agreed that he would do no further work upon said adding machine, but endeavor to dispose of the same at the earliest possible moment and sever all connection therewith. There was also excepted from the contract a certain cash register upon which Fuller had been working during the preceding year and upon which he had expended some $3,000 in its development, and for which he had applied for letters patent to the United States Patent Office; and the plaintiff was given an option to purchase such machine if it desired. By the terms of the contract Fuller also agreed that he would upon demand at any time from said plaintiff furnish full information with regard to any inventions which he may have made or which may have been worked out under his direction during the term of his employment with said National Cash Register Company. The contract admittedly was prepared by the plaintiff and was designed to safeguard the plaintiff’s interests in all particulars. This contract was not renewed at the end of the year, and by its terms expired on March 14, 1910. Nevertheless, Fuller continued in the employment of the plaintiff until September 1, 1917, at varying rates of compensation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Financial Guardian, Inc. v. Kutter
630 S.W.2d 197 (Missouri Court of Appeals, 1982)
De Vita v. Rand McNally & Co.
44 Misc. 2d 906 (Ossining Justice Court, 1965)
Art Wire Stamping Co. v. Johnson
56 A.2d 11 (New Jersey Court of Chancery, 1947)
United Chemical & Exterminating Co. v. Security Exterminating Corp.
246 A.D. 258 (Appellate Division of the Supreme Court of New York, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
212 A.D. 343, 209 N.Y.S. 40, 1925 N.Y. App. Div. LEXIS 10431, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-cash-register-co-v-remington-arms-co-nyappdiv-1925.