North v. Atlas Brick Co.

13 S.W.2d 59
CourtTexas Commission of Appeals
DecidedFebruary 6, 1929
DocketNo. 988-5145
StatusPublished
Cited by30 cases

This text of 13 S.W.2d 59 (North v. Atlas Brick Co.) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North v. Atlas Brick Co., 13 S.W.2d 59 (Tex. Super. Ct. 1929).

Opinion

SPEER, J.

This case has been once before to this court, the opinion being by Judge Nickels of Section A and reported in 288 S. W. 146. The decision, upon the last appeal, is by the Court of Civil Appeals for the Eighth District and is reported in 2 S.W.(2d) 980.

Both parties applied for a writ which was granted. Briefly stated, the case is an action by Atlas Brick Company against Clarence Lupfer North, to recover certain rights under letters patent issued to North covering a process or formula for the manufacture of brick and for an accounting, it being alleged that North was in the employ of the company operating its brick plant at the time he discovered the formula or perfected the process, and further that he had sold the product of the plant to his personal profit in fraud of the company’s rights, and in other respects sought recovery against him. No further statement of the case is necessary except with respect to the one issue upon which we recommend a reversal.

The case was submitted upon special issues. Question No. 3 was: “Do you find from a preponderance of the evidence that the defendant, G. L. North, while in control and management of the plaintiff company and its properties used the time, material, labor and equipment of the company in aid of the discovery or invention of the Klinker brick?” To this the jury answered, “No.” Thereupon the trial court entered judgment, in part, as follows:

“And the court further finds that the finding of the jury to Question No. 3 is contrary to, and opposed to, the overwhelming weight of the evidence, and that if such finding should control the judgment herein rendered, it would be the duty of the court and the court would set aside said judgment as being against the weight of the evidence, unless the defendant would agree and grant to the plaintiff a right, without charge, to use the method of manufacturing brick which was patented to the defendant, North, by patent No. 1440234, and to manufacture brick by such method and sell such brick from its plant in El Paso, Texas, but not manufacture brick elsewhere; but the court does not consider that the finding of the jury to Question No. 3, referred to, controls this judgment as rendered.
“Wherefore * * * it is further ordered, adjudged and decreed that the plaintiff, Atlas Brick Company, so long as it continues in business, shall have the right to use, in its plant in El Paso, Texas, all of the rights, privileges, powers, processes and methods in-the manufacture of brick, given, granted and secured to the defendant, G. L. North, in, by and under patent 1440234, issued by the United States of America to said O. L. North, on the 26th day of December, 1922, and the right to sell the product of such manufacturer without the payment of royalty to, or any other charge by the defendant, C. L. North, or his heirs or assigns.”

There was a judgment against the brick company as to its claim of title to the patent and against it upon the issue of loss for the sale of its product during the time the defendant was general manager of the company and against the defendant upon an issue of rentals paid by the company to Sheehan-North Company, a concern in which the defendant was personally interested. Both parties sought a new trial, and both appealed.

Plaintiff in error North assigns as error that the Court of Civil Appeals erred in holding that the trial court did not err in adjudging to the Atlas Brick Company a shop right to the patent in controversy.

First, it is complained that this holding was error because the plaintiff’s petition did not assert such a cause of action. This contention, we think, should be overruled. It is true the plaintiff sought primarily to recover title to the letters patent, alleging specifically a parol agreement that the de[61]*61fendant was employed by it for the purpose of improving its processes in such a way that the patent covering such improvement would rightfully belong to it. But the plaintiff further alleged: “That in pursuance of the verbal contract so entered into by and between plaintiff and defendant and in pursuance of his employment as general manager and for inventing or devising improvements for the plaintiff company in its process of manufacturing and mating of brick, the defendant, while so employed by the plaintiff and while acting as president and general manager of plaintiff, did make experiments in pursuance of such verbal agreement in the process of manufacturing brick at the cost and expense of plaintiff company during the time he was employed in the pay of the plaintiff company as president and general manager and all of said experiments were made at the cost and expense of the plaintiff company with its machinery and the plant of the plaintiff company and with the assistance of the employés in the pay and at the expense of the plaintiff company; that during all that time there was a confidential relation existing between plaintiff and defendant by reason of the, defendant being elected president arid general manager and in charge of the business of the company under an agreement to make, invent or devise improvements in the process of manufacturing brick; that it was expressly, understood by and between plaintiff and the defendant at the time of the employment of the defendant by the plaintiff as its president and general manager that the defendant was to have general charge of the manufacture of brick by the plaintiff company and especially in the development, devising or invention of á process for the improvement of the product manufactured by the plaintiff, and that any improvement, device or invention made by the defendant in the process for the manufacture of brick have to be for the plaintiff company and for its benefit and its property in consideration of the compensation paid the defendant by the plaintiff and that any device, invention or improvement made in the process of the manufacture of brick was to become the property of the plaintiff company.”

The company prayed for judgment for the title to the letters patent, and in the alternative, “in the event the court shall hold that the plaintiff is not entitled to a conveyance to the aforesaid letters patent and patent right, then, in such event, the plaintiff prays the court to decree that plaintiff has the exclusive right to use said letters patent and the' patent process in the manufacture of brick free of any royalties to the defendant, Clarence Lupfer North, wheresoever the plaintiff may be engaged in business with the right to assign arid transfer such right to use said letters patent and patent process in the manufacture of brick to its successors and to its assigns, * * * and such other and further relief, general and special, legal and equitable, as the plaintiff may be justly entitled to.”

We think this pleading raised the issue of the plaintiff’s right to a shop right in the letters patent. It, of course, raised that issue as predicated upon express contract, but it likewise pleaded facts that were entirely inapt to a contractual right, but which tended to show a situation from'which there would arise an implied grant of such shop right. We refer to the allegations that the defendant, while occupying a position of trust as general manager of the company and while he owed the company the duty of his personal services, occupied his time thus belonging to the company, used its machinery, the services of its other employés, and its plant and facilities for the purpose of experimenting and perfecting the process afterward patented, and thereafter continued to use the same for the benefit of the company.

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

Related

Ronny Puga and Rickey Puga v. Barbara Salesi
Court of Appeals of Texas, 2015
Butler v. Hanson
455 S.W.2d 942 (Texas Supreme Court, 1970)
Citizens National Bank in Abilene v. Rogers
449 S.W.2d 839 (Court of Appeals of Texas, 1969)
Rogers v. Texas Industries, Inc.
328 S.W.2d 483 (Court of Appeals of Texas, 1959)
Ex Parte Flournoy
312 S.W.2d 488 (Texas Supreme Court, 1958)
Jones v. Green
281 S.W.2d 221 (Court of Appeals of Texas, 1955)
Attebery v. Henwood
177 S.W.2d 95 (Court of Appeals of Texas, 1943)
Texas Employers Ins. Ass'n v. Reed
150 S.W.2d 858 (Court of Appeals of Texas, 1941)
Ronsley v. City of Fort Worth
140 S.W.2d 257 (Court of Appeals of Texas, 1940)
Wichita Falls & Oklahoma Railway Co. v. Pepper
135 S.W.2d 79 (Texas Supreme Court, 1940)
Travelers Ins. Co. v. Gibson
110 S.W.2d 241 (Court of Appeals of Texas, 1937)
Traders & General Ins. Co. v. Woods
103 S.W.2d 1058 (Court of Appeals of Texas, 1937)
Wichita Falls & Oklahoma Ry. Co. v. Pepper
101 S.W.2d 365 (Court of Appeals of Texas, 1937)
Safety Casualty Co. v. McGee
93 S.W.2d 519 (Court of Appeals of Texas, 1936)
Panhandle & S. F. Ry. Co. v. Friend
91 S.W.2d 922 (Court of Appeals of Texas, 1936)
Amarillo Transfer & Storage Co. v. De Shong
82 S.W.2d 381 (Court of Appeals of Texas, 1935)
Bell v. Henson
74 S.W.2d 455 (Court of Appeals of Texas, 1934)
Smith v. El Paso N.E. R. Co.
67 S.W.2d 362 (Court of Appeals of Texas, 1933)
Garrett v. State
51 S.W.2d 822 (Court of Appeals of Texas, 1932)
Fidelity Union Casualty Co. v. Arnold
40 S.W.2d 954 (Court of Appeals of Texas, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
13 S.W.2d 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-v-atlas-brick-co-texcommnapp-1929.