Papazian v. American Steel & Wire Co. of New Jersey

155 F. Supp. 111, 115 U.S.P.Q. (BNA) 333, 1957 U.S. Dist. LEXIS 2902
CourtDistrict Court, N.D. Ohio
DecidedFebruary 13, 1957
DocketCiv. A. 28877
StatusPublished
Cited by12 cases

This text of 155 F. Supp. 111 (Papazian v. American Steel & Wire Co. of New Jersey) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Papazian v. American Steel & Wire Co. of New Jersey, 155 F. Supp. 111, 115 U.S.P.Q. (BNA) 333, 1957 U.S. Dist. LEXIS 2902 (N.D. Ohio 1957).

Opinion

McNAMEE, District Judge.

The issues here presented arise on defendant’s motion for summary judgment. Plaintiff is a resident of Massachusetts and a former employee of the American Steel & Wire Company. The original defendants, American Steel & Wire Company and the United States Steel Company, both of New Jersey, were merged in late 1951, and subsequent to the commencement of this action the Steel Company was merged into the United States Steel Corporation, a separate New Jersey corporation. The alleged jurisdictional grounds are diversity of citizenship and that this action arises under the patent laws of the United States. The action is one at law in which plaintiff seeks the recovery of damages only and has demanded a jury trial.

Simply stated, plaintiff’s claim is that while employed by the American Steel & Wire Company at its plant in Worcester, *114 Massachusetts, he invented a “method of recessing the sink head of ingots and the like”, described in United States Letters Patent No. 2,485,065, and that he was induced by false and fraudulent representations of the plant superintendent to assign the application for the patent and the invention to the Wire Company and has been damaged thereby in the amount for which he asks judgment.

The alleged false representations are stated to be promises and assurances of the superintendent that in consideration of plaintiff’s assignment of the patent to the Wire Company he would receive permanent employment, recognition by way of promotions, and a valuable reward for his invention. Plaintiff avers that said representations were known to be false and were made without any intent of the Wire Company to honor or fulfill them; that said promises were relied upon by the plaintiff, and that plaintiff has not received any of the considerations promised but was discharged from his employment without cause.

The Complaint, which is framed pursuant to the provisions of Rule 8(e) of the Federal Rules of Civil Procedure, 28 U.S.C., is. a prolix statement of four separate causes of action, each based upon a different theory of liability but all of which rest upon substantially identical factual allegations. In his first cause of action plaintiff alleges that by their fraudulent and wrongful conduct defendants have been unjustly enriched and are constructive trustees of said patent for plaintiff, who is the rightful and beneficial owner thereof. In his second cause of action plaintiff predicates his claim on the theory that the defendants wrongfully converted his property rights in the patent. The third cause of action alleges that defendants by their wrongful conduct “hold a naked legal title in and to said invention and patent for and on behalf of plaintiff, as the equitable owner”, and that defendants are and have been infringing plaintiff’s patent. In the fourth cause of action plaintiff seeks recovery on an alleged breach of an oral contract. Plaintiff does not ask for a rescission of his assignments of the patent; nor does he seek any equitable relief whatever. As noted above, his claim is for money only, and appended to each of the causes of action is a prayer for damages in the sum of $850,000.

The most vigorously contested issue is whether on the record made upon this motion for summary judgment defendants are entitled to judgment as a matter of law on the claim for patent infringement set forth in the third cause of action. There is a dispute as to whether the superintendent of defendant’s plant at Worcester made the statements and representations attributed to him, but defendant contends that even if it be assumed that such representations were made, it is nevertheless entitled to summary judgment.

The record discloses the following material facts:

Plaintiff entered the employment of the American Steel & Wire Company at its plant in Worcester, Massachusetts in 1933. In 1936 he applied for a patent on a stencil attachment for a spray gun to use in marking steel billets. In accordance with the company's patent rules then in effect, he gave the Wire Company and other subsidiaries of the United States Steel Corporation a royalty-free license to use this device. It does not appear, however, that much, if any, use was made of this invention by the company. On or about June 15, 1942, while employed as a “stock chaser” or surveyor of equipment, plaintiff conceived a method of recessing the sink heads of ingots, a process by which cleats are used to form indentations in the opposite sides of the sink heads of ingots and thereby provide a firmer grip for the tongs of the crane which removes the ingots from the molds and transfers them to a soaking pit.

Plaintiff disclosed his invention to his immediate superior, who was impressed with its potentalities and ordered tests or a demonstration to be made in the company’s plant. In this connection plaintiff testified on deposition: “When I presented the cleats to Mr. Slenker I *115 found a friend immediately. He agreed with me to the nth degree the minute I got through explaining the process. The only doubt in his mind was whether I was a dreamer or not. That had to be shown. That’s why the demonstration. Immediately after the demonstration I knew I was, shall we say, safe. I had a job definitely.” On June 16, 1942 plaintiff made a detailed drawing of the invention upon a paper which bore the inscription: “This drawing and all information thereon is the property of The American Steel & Wire Company,” etc. From June, 1942 to May, 1943 plaintiff’s principal work was in watching the operations of the process and making tests, and in October, 1942 he made written reports to Slenker, who was the mill superintendent, of the results of the tests. During this period the method of recessing sink heads was adopted as standard practice by the company, but there was no discussion between plaintiff and any of his superior officers relative to the payment of compensation for the use of the invention. On May 11, 1943 Slenker handed plaintiff a form of application for patent and a form of assignment. Plaintiff asked Slenker to make an appointment for him with Mr. Gleason, who was then General Superintendent of the company’s plant at Worcester. According to plaintiff, Slenker arranged the conference. Plaintiff stated that he complained to Gleason about the fact that he had not received the kind of job he expected when he invented the spray gun in 1936; that he said to Gleason, “This cleat patent is a valuable piece of merchandise and my property,” and that he felt this would be a good time to break and capitalize on his idea. According to plaintiff, Gleason expressed appreciation of plaintiff’s confidence in him, but suggested that plaintiff’s impression of the value of the patent might be erroneous and, by way of illustration, Gleason said that he had something like thirty patents and had not become wealthy from any of them. Plaintiff testified that Gleason said that as against cooperating with the company and signing the instruments, plaintiff ought to consider security for himself and his family — “And he went on to say that the company would reward me commensurate with the value of the patent if I was right in the value that I set on it. And that I would never have to worry about a job the rest of my life.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
155 F. Supp. 111, 115 U.S.P.Q. (BNA) 333, 1957 U.S. Dist. LEXIS 2902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/papazian-v-american-steel-wire-co-of-new-jersey-ohnd-1957.