Phoenix Pad Co. v. United States Ex Rel. the American Coat & Pad Co.

75 A. 894, 111 Md. 549, 1909 Md. LEXIS 146
CourtCourt of Appeals of Maryland
DecidedDecember 3, 1909
StatusPublished
Cited by3 cases

This text of 75 A. 894 (Phoenix Pad Co. v. United States Ex Rel. the American Coat & Pad Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phoenix Pad Co. v. United States Ex Rel. the American Coat & Pad Co., 75 A. 894, 111 Md. 549, 1909 Md. LEXIS 146 (Md. 1909).

Opinion

Burke, J.,

delivered the opinion of the Court.

On May the 8th, 1901, the Phoenix Pad Company of Baltimore City filed a bill of complaint against the American Coat Pad Company and Louis Bouchat in the Circuit Court of the United States for the District of Maryland for an injunction to restrain them from infringing .certain letters patent for a new and useful invention entitled a shoulder pad, issued by the United States and owned by the complainant. The Court ordered a preliminary injunction to issue as prayed upon the filing by the complainants of a bond with surety in the penalty of three thousand dollars. The complainant executed and filed a bond in the prescribed penalty .on the 12th day of June, 1901, with the United States Fidelity and Guaranty Company as surety. This bond was approved by the Court and the injunction was issued, wherein it was adjudged that the defendants had infringed the rights secured to the complainants by the patent mentioned in the bill, and restrained them, their servants and employees, etc., from making, using or furnishing- for use or selling any shoulder pads whatever containing or embodying the invention and improvements, or any máterial or substantial part thereof set forth and claimed in and by the letters patent named in the bill of complaint. Upon the appeal of the defendants, the United States Circuit Court of Appeals reversed this order. Nothing further was done by the complainants in the cause, and the District Court on the 16th of *555 December, 1907, dismissed the bill of complaint with costs to the defendants.

The defendants then brought an action for damages on the injmiction bond in the Superior Court of Baltimore City,- and from the judgment in their favor entered in that Court the defendants in that suit have brought this appeal.

The record contains only one bill of exception, which presents for review the propriety of the Court’s ruling upon the prayers of the respective parties offered at the close of the whole evidence. The plaintiffs offered four prayers, and the defendants six for instructions to the jury. The Court granted the plaintiff’s prayers, and also granted the fourth, fifth and sixth prayers of the defendants; but modified, and granted as modified, their second prayer, and refused their first and third prayers, and to these rulings the defendants excepted. These prayers will be set out in the report of the case preceding this opinion.

It was conceded by the defendants that the plaintiffs were entitled to recover nominal damages, but they contend that under the facts appearing in the record it was the duty of the Court to have limited the recovery to such damages. They further contend that, even if they be wrong in this position, the Court committed an error in refusing their third prayer which asserted that actual damages could only “be determined from records of expense kept at the time the expenditures were made.” Inasmuch as there was no record of such expense, the granting of this prayer would have precluded the recovery of actual damages.

Assuming that the plaintiffs, under the facts of the ease, were entitled to recover actual damages, and that there was evidence offered from which the amount of such damages might have been legitimately found by the jury, we are of opinion that the case was fairly submitted to them under the prayers granted.

The general rule is that in an action upon an injunction bond the recovery must be confined to such actual damages as the plaintiff may be able to show were suffered by him. *556 This damage must he the natural and proximate consequence of the issuing of the injunction. This rule, or measure of damages, is so well settled that no authorities need he cited to support it. It was the rule applied by the Oourt in all its instructions upon the subject, and, unless there be reversible .error in refusing the defendant’s first and third prayers and in modifying their second prayer, the judgment must be affirmed. '

To determine the propriety of the Court’s action in these respects, a brief outline of the facts is necessary. After the service of the injunction upon the plaintiffs, by advice of their counsel, they changed the character or structure of the pad. Prior to the injunction they were making an elastic pad, made of cotton with a layer of elastic fibre. The insertion of this fibre in the mass of cotton prevented the pad from matting, and held it in its original shape. This was the pad which the Phoenix Pad Company claimed to be an infringement of its patent. The change made in the structure was the insertion of an additional layer of four pieces of wadding. The shape and structure of these layers and the manner in which they were introduced into the original pad are fully explained in the testimony of the witnesses.

To retain their customers it was necessary to sell this changed pad at the same price as the original pad. The evidence on the part of the plaintiffs tended to show that the pad made and sold by them after the injunction cost more to manufacture than did the elastic pad which they were putting out before the injunction was issued. This increased cost in the manufacture of the pad pending the injunction, together with certain costs incurred by them in the injunction case, is the damage which the pláintiffs sought to recover in this action.

The plaintiffs proved the number of pads made and sold during the continuance of the injunction. They produced their books, and introduced in evidence, without objection, a statement taken from the books, which showed the additional' cost incurred in the manufacture of the new pad. Miss *557 Rodgers, the book-keeper of the plaintiff company, who produced this statement and who proved it was taken from, those books, testified that she did not know what the extra cost for manufacturing the pads'was; but that that cost, as shown upon the statement, was figured by Mr. Bouchat, and that, to quote her language, it “was understood by me to put that additional cost on them.” She further testified that there was a careful calculation made of the cost of manufacturing the pads made upon estimate sheets, which were preserved for a while; but that these estimates were not entered on the books, and that she had then none of those sheets; that Mr. Bouchat attended to the calculation of the cost, and that the estimate sheets, which were preserved for about six months, showed the cost of the pad — the material that went in it and the labor.

Mr. Bouchat, who had large experience in the manufacture of pads and who was familiar with every detail of the busi-’ ness, testified that the extra cost of the substituted pad was two dollars and fifty cents per thousand pairs, and fully explained how and why this extra cost was made necessary. He had the books of the company before him, which showed the number of pads made. These books and the statement above mentioned were afterward offered in evidence during the examination of Miss Rodgers. He stated that this additional cost was made up of additional material and labor required to make the pad manufactured by them after the injunction — two dollars for additional material and fifty cents fox labor, etc., in putting them together.

Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
75 A. 894, 111 Md. 549, 1909 Md. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phoenix-pad-co-v-united-states-ex-rel-the-american-coat-pad-co-md-1909.