Newell v. Wheeler

4 Rob. 247
Procedural entryThis page is a short order in Newell v. Wheeler. Read the opinion of the Court — 2 Abb. Pr. 134
The Superior Court of New York City·Decided December 12, 1866·Published

Opinion

By the Court,

Robertson, Ch. J.

The basis of damages adopted in this case would only have been justifiable on the plaintiff’s construction of the obligations of the defendants, in case they had a right to subject all the coffee received by them to a process similar to that of the plaintiff, by a machine, or could, by proper exertions, have acquired such right. It coxdd not be presumed, as matter either of law or fact, that the owners of all coffee, sound and unsound, placed in their [250]*250hands to be cleaned, would, have had it all submitted to the plaintiff’s process, or any more of it than the “ shimmings,” after being separated by hand from the undamaged part. It would, therefore, have been either an abuse of the confidence reposed in the defendants, as agents, to have subjected, of their own accord, such owners to the expense of “machining” the whole of such coffee, when unnecessary, or a preposterous burden upon themselves, to have done it without compensation, because they had possession of the coffee merely, in order to earn a right for the plaintiff to demand the tolls reserved to him. The defendants, therefore, were clearly not liable for the" royalty on the whole of such coffee. As no data were furnished, on the trial, to estimate the quantity of “ shimmings ” in such ah amount of coffee, the verdict cannot be rectified by a reduction. The amount of damages, alone, therefore, would warrant the granting of a new trial.

But the plaintiff’s recovery is subject to a graver objection, lying at the foundation of his cause of action. The main ground upon which he claims the liability of the defendants for so much tolls as would have accrued to him by the renovation by them, by his process, of as much coffee as they could with reasonable diligence have procured to be subjected to it, is the phrase respecting keeping machinery in operation, contained in the condition in the first part of the instrument of March, 1858, in reference to disputes between the defendants already referred to. There can be no doubt that the whole clause was intended to contain a condition and nothing else, however qualified. Since it not only commences with the terms, “it is further conditioned,” but is inserted after a general grant of an indefinite interest upon conditions which are said to follow; and before the second part of such instrument, which contains a more precise- grant, said to be “ in consideration of the foregoing condition, and a compliance therewith.” The only condition immediately preceding such last grant, was a restriction on selling patent rights without the plaintiff’s consent. That clearly could not have been the [251]*251only condition, for a compliance with which, the grant was made.

When scrutinizing all the terms of such condition to determine the construction of such qualifying phrase, two or three things are to he kept in view. In the first place, the first condition of such grant by whose non-performance it was defeasible, was the payment of the prescribed tolls for all coffee, which passed through the plaintiff’s cylinders and process, without specifying by whom. A fair construction of that would undoubtedly be, by virtue or in consequence of the grant,to the defendants. But they had a right to transfer the whole or any part of the subject of such grant, and their vendees would have the right to use any quantity of machinery to carry on such process. And the plaintiff would have the right to the prescribed tolls for such use, to be enforced by a forfeiture of the grant in case of non-payment. If the defendants should by such instrument undertake, therefore, to pay such tolls, they would not only have paid five thousand dollars for the patent right, but have undertaken to keep the machinery used by them in operation, while they retained the right, and had been prevented from alienating without the plaintiff’s consent, but after alienating be still responsible for tolls upon all the coffee cleaned by their vendees, by virtue of such process, thus destroying one of the principal benefits to be derived from a purchase of a right beyond that of a right of using the patent, to wit, a power to sell and dispose of it. Besides, the tolls, for whose non-payment the grant was to be forfeited, were payable at all events ; whether the defendants did or not earn an amount equal to them from others. An undertaking by them to keep the machines running, whatever the rate of compensation to them might be, merely to earn the plaintiff’s right to the prescribed tolls, would certainly be a piece of folly, of which they ought only to be convicted upon the most clear and express evidence of having entered into it.

Both parties assumed in this instrument, that the patent was likely to prove profitable, the. defendants paying a large [252]*252sum for the right, and the plaintiff claiming under it three times the amount, in addition, for a commutation of his right to the prescribed tolls.

According to the general scope of such instrument it contemplated the use of all the machinery which could be employed within the prescribed district in cleansing and renovating coffee by the plaintiff’s process, either by the defendants or their representatives or grantees, termed in such instrument “successors.”. But the phrase in the condition in question on which the plaintiff relies- to impose an obligation upon the defendants of working diligently with the machinery, by which his process was carried on, speaks of keeping in operation machinery “ contemplated ” by such instrument, and used by the defendacts “ or their successors.” The plaintiff, apparently aware how extravagant the claim would be, that the defendants should keep in motion for his benefit all the machinery which could be set in motion under such grant, according to the public demand, by themselves or their successors, limits his claim, in his complaint, to the more moderate standard of the machinery to which the cylinder belonged, which the plaintiff was to furnish, as part of such agreement, as being that which was designated and intended by the clause under consideration as “machinery contemplated” in such instrument, and which such complaint also states to be part of its consideration. If by the last be meant the consideration of the grant, it clearly was not, as the performance of the conditions was expressly declared to be, the only one. It may have been of the payment of the five thousand dollars, but that would neither give the plaintiff any additional rights, nor make such cylinder the machinery designated as “contemplated.” No great stress, therefore, in construing the clause in question, could properly be laid upon the supposition that the machinery “ contemplated ” was to be confined to that alone of which the plaintiff was to furnish a piece as part of the agreement. If there was a covenant at all entered into by the defendants, by virtue of such phrase, which such transfer of the patent right contemplated being used, upon [253]*253any rule of legal construction, it must have included all machinery capable of being used under it. Although the plaintiff shrinks from the enormity of claiming it, and sheltering himself behind the more modest demand of merely employing that machinery, for which he was to furnish a cylinder as part of the consideration for the money paid him, if his patent was really likely to be productive, he had secured the payment of his tolls by the forfeiture of the grant if they were not paid, and that condition attached in the hands of sub-grantees.

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Newell v. Wheeler, 4 Rob. 247 (N.Y. Super. Ct. 1866).

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