Oerlikon Machine Tool Works Buehrle & Co. v. United States

118 Ct. Cl. 614, 1951 U.S. Ct. Cl. LEXIS 118, 1951 WL 5338
CourtUnited States Court of Claims
DecidedMarch 6, 1951
DocketNo. 49696
StatusPublished
Cited by1 cases

This text of 118 Ct. Cl. 614 (Oerlikon Machine Tool Works Buehrle & Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oerlikon Machine Tool Works Buehrle & Co. v. United States, 118 Ct. Cl. 614, 1951 U.S. Ct. Cl. LEXIS 118, 1951 WL 5338 (cc 1951).

Opinion

WhitakeR, Judge,

delivered the opinion of the court:

This case is before us on defendant’s motion to dismiss ^plaintiff’s petition. The petition was supplemented by a •bill of particulars.

Plaintiff, a Swiss partnership, a legal entity under Swiss law, alleges that, in order to induce defendant to adopt an • antiaircraft gun which it had invented and on which it had .•secured Swiss patents, it delivered to the Bureau of .Naval [616]*616Ordnance one of these guns, together with a supply of ammunition for it, for the purpose of demonstration, and that after the Bureau of Naval Ordnancé had tested the gun it later adopted it as standard equipment and manufactured many of them and large quantities of the ammunition for it.

■ Plaintiff does not claim to have secüred a United States patent on the gun, but it does say that it “made available' full manufacturing rights* including the use of the.gun design, working drawings* toolings, formulas, specifications of materials, technical advice-and ‘know how’, and also the full and detailed working drawings for the jigs, tools, gauges, and other items necessary, for the successful production of said gun and ammunition.” It does not allege that it made these things available to the United States, nor to-whom it did make them available; but it seeks compensation from the United States because the defendant later caused to be manufactured for, itself a number of these guns and,, therefore, it says it must be inferred that the defendant used these things which plaintiff “made' available.” It seeks compensation both on the theory that the United States had entered into an implied contract with it to pay for the use-of them and also on the theory that the United States was liable to it for its alleged use of them under the Fifth Amend- ■ ment to the Constitution. , . .

About a year after plaintiff demonstrated its gun to the-Bureau of Naval Ordnance the defendant did' cause to be-manufactured a number of these guns for its account. Intervening and prior events, hówéver, are important. The-chronology of them is significant.

In 1939 the British Admiralty adopted plaintiff’s gun as a standard British weapon and entered into a licensing-agreement with plaintiff to manufacture it in the British Empire. The manufacturing • capacity of Great Britain, however, was not equal to the job of making as many of these guns as Great Britain needed and it was determined’ to supplement' the English output with that of American» manufacturers. Accordingly, in May 1940, plaintiff sent one of its agents to this country, who arranged with several American manufacturers to engage in the production of its< weapon, known as the Oerlikon cannon. In so doing plain[617]*617tiff’s agent was working under tbe auspices of the British Purchasing Commission, but with the knowledge and consent of the United States Government.

In 1940 a corporation was formed by plaintiff’s agent to assemble the gun from parts manufactured by various American contractors. Plaintiff’s agent subscribed to 25 percent of the stock of this corporation, and the balance was subscribed by American investors. The company was incorporated under the name of the American Oerlikon Gazda Corporation, familiarly known as the AOG Corporation. The United States Government owned no stock therein and had no part in the organization of this company.

In June 1940 plaintiff’s agent arranged for one of plaintiff’s factory-trained experts to come to this country to give instructions and advice to American manufacturers relating to the manufacture and operation of the Oerlikon cannon.

All of this was done to further the production of this cannon for the British Government.

In the meantime, plaintiff and the British Purchasing Commission were undertaking to agree on a licensing agreement for the manufacture of this gun and ammunition in the United States, as a supplement to the licensing agreement for the manufacture of the gun in Great Britain. An agreement was finally entered into on March 8, 1941, under which plaintiff gave to the British Government an exclusive license to manufacture and use and sell the gun and ammunition'in the United States. The agreement, however, was subject to the consent of the Swiss Government, and this consent was never obtained, and in default thereof the agreement was declared to be inoperative and of no effect. Notwithstanding this, however, the manufacture of the gun continued.

While all of these transactions were carried on with the knowledge and consent of the United States Government, they were all carried on between plaintiff and the British Purchasing Commission, and the United States Government was not a party thereto.

However, in March 1941 the United States Government enacted certain “lend-lease” Acts. Under these Acts, upon request from certain foreign governments, the United States [618]*618would procure tbe materials requested for its own account,, and then lend or lease them to the foreign government requesting them. After the passage of these Acts, the Navy Department on and after August 9,1941, undertook the procurement of these Oerlikon cannon, and then loaned or leased them to the British Government. Until this time the' defendant had had no contractual relations with plaintiff either expressly or by implication.

This was more than a year after plaintiff, at the instance of the British Government, had first made available to American manufacturers its designs, working drawings, toolings, formulas, and specifications of materials, and had given to them its technical advice and “know how”, including the instructions given American manufacturers by Mr. Lame-raner, plaintiff’s factory-trained expert whom it brought over to this country for this purpose. It follows that when the defendant began having these guns manufactured for its account, the manufacturers were already in possession of the drawings, designs, and manufacturing “know how” which plaintiff had furnished them at the behest of the British Purchasing Commission; and; hence, defendant cannot be said to have impliedly • agreed to pay for what was already available to those from whom it ordered these guns. The petition does not allege that after the defendant started having these guns manufactured for its account that plaintiff furnished any further technical advice or “know how” to assist in their manufacture. No express contract is alleged.

As stated above, plaintiff did not have an American patent on the gun, nor any American copyright on the drawings and designs to aid in its manufacture.

The licensing agreement of March 8, 1941, entered into between plaintiff and the British Purchasing Commission, had provided that it might be assigned to the United States, but this was never done; on the contrary, when the consent of the Swiss Government could not be obtained, this agreement was declared inoperative and of no effect. There is no allegation that the United States undertook to perform the obligations imposed on the British Purchasing Commission by this agreement, nor are any facts alleged from which we can infer an agreement by the United States to do so.

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Related

Oerlikon Machine Tool Works Buehrle & Co. v. United States
151 F. Supp. 332 (Court of Claims, 1957)

Cite This Page — Counsel Stack

Bluebook (online)
118 Ct. Cl. 614, 1951 U.S. Ct. Cl. LEXIS 118, 1951 WL 5338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oerlikon-machine-tool-works-buehrle-co-v-united-states-cc-1951.