Potash Co. of America v. International Minerals & Chemical Corp.

213 F.2d 153
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 3, 1954
Docket4678
StatusPublished
Cited by51 cases

This text of 213 F.2d 153 (Potash Co. of America v. International Minerals & Chemical Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Potash Co. of America v. International Minerals & Chemical Corp., 213 F.2d 153 (10th Cir. 1954).

Opinion

PICKETT, Circuit Judge.

. Potash Company of America 1 was the owner of patents No. 2,046,312 (Anderson Reissue 21,566), Weinig 2,105,294 and Weinig 2,188,932. All three patents relate to various aspects of froth flotation processes for separating sylvite from potash bearing ore known as “sylvinite”. The Anderson reissue patent is wholly devoted to this method, while the Weinig patents combine the process with a heat cycle method. The Anderson patent was issued July 7, 1936, and the Weinig patents, which were improvements on the Anderson patent, were issued a short time thereafter. This action was brought to enjoin alleged infringement of the three patents and for an accounting. The defense was invalidity, noninfringement and laches. After a trial on all the issues, the trial court held that the patents were valid and infringed but denied relief because of laches. We have carefully examined the voluminous record and concluded that the judgment must be affirmed.

On the question of laches, there are well-settled applicable rules of The rule is applicable in patent cases. Lukens Steel Co. v. American Locomotive Co., 2 Cir., 197 F.2d 939; Brennan v. Hawley Products Co., 7 Cir., 182 F.2d 945, certiorari denied 340 U.S. 865, 71 S.Ct. 89, 95 L.Ed. 631; Shaffer v. Rector Well Equipment Co., Inc., 5 Cir., 155 F.2d 344; Pollitzer v. Foster, 6 Cir., 59 F.2d 901; Dwight & Lloyd Sintering Co., Inc., v. Greenawalt, 2 Cir., 27 F.2d 823; A. R. Mosler & Co. v. Lurie, 2 Cir., 209 F. 364; Walker on Patents, Vol. 4, p. 2658. To constitute laches two elements must exist: first, inexcusable delay in instituting suit and second, prejudice resulting to the defendant from such delay. The existence of laches does not depend merely upon the lapse of time, but also upon the equities presented in the case. Pfister v. Cow Gulch Oil Co., 10 Cir., 189 F.2d 311, certiorari denied 342 U.S. 887, 72 S.Ct. 177, 96 L.Ed. 665; Rome Grader & Machinery Corp. v. J. D. Adams Mfg. Co., 7 Cir., 135 F.2d 617; Hoehn v. Crews, 10 Cir., 144 F.2d 665, 671, affirmed Garber v. Crews, 324 U.S. 200, 65 S.Ct. 600, 89 L.Ed. 870. 2 In the latter case we said, “No absolute rule can be laid down by *155 which to determine what constitutes laches or staleness of demand. Each case must be determined according to its own peculiar circumstances. Since laches is an equitable doctrine, its application is controlled by equitable considerations. It cannot be invoked to defeat justice and will be applied as a defense only where the enforcement of the asserted right would work injustice.” 3

Generally, the question of laches is addressed to the sound discretion ot the trial judge. Gardner v. Panama R. Co., 342 U.S. 29, 72 S.Ct. 12, 96 L.Ed. 31; Lansdale v. Smith, 106 U.S. 391, 1 S.Ct. 350, 27 L.Ed. 219; Laursen v. O’Brien, 7 Cir., 90 F.2d 792; Gillons v. Shell Co. of Calif., 9 Cir., 86 F.2d 600, certiorari denied 302 U.S. 89, 58 S.Ct. 9, 82 L.Ed. 532; 30 C.J.S., Equity, § 115.

Laches will not be imputed to one who has been justifiably ignorant of facts which create his right or cause of action. Chisholm v. House, 10 Cir., 183 F.2d 698; Lawson v. Haynes, 10 Cir., 170 F.2d 741; Alexander v. Phillips Petroleum Co., 10 Cir., 130 F.2d 593; Central Ry. Signal Co. v. Longden, 7 Cir., 194 F.2d 310. But ignorance will not of itself excuse delay. The party must be diligent and make such inquiry and investigation as the circumstances reasonably suggest, and the means of knowledge are generally equivalent to actual knowledge. Baker v. Cummings, 169 U.S. 189, 18 S.Ct. 367, 42 L.Ed. 711; City of New Albany v. Burke, 11 Wall. 96, 78 U.S. 96, 20 L.Ed. 155; Mount Vernon Sav. Bank v. Wardman, 84 U.S.D.C.App. 343, 173 F.2d 648; Winn v. Shugart, 10 Cir., 112 F.2d 617. If the party which advances the defense of laches is .,, „ ,, , , , ... responsible for the delay or contributes ... . substantially to it he cannot take ad- , , ., m , .. ... Tan+tage of lL ™en’ too> lf facts are+ pealed or misrepresented by f '3USpect+f ™gdoer’ and if m reliance the5e°n the ?erS°n 13 d™d and his suspicions allayed for awhile, a “Urt °f eqaity ^ not grant thf wroaf doer any advantage resulting from the , lapse of time. Saulsbury Oil Co. v. Phillips Petroleum Co., 10 Cir., 142 F.2d 27, 40, certiorari denied 323 U.S. 727, 65 S.Ct. 62, 89 L.Ed. 584; Merritt Oil Corp. v. Young, 10 Cir., 43 F.2d 27; York v. Guaranty Trust Co. of N. Y., 2 Cir., 143 F.2d 503, reversed on other grounds 326 U.S. 99, 65 S.Ct. 1464, 89 L.Ed. 2079; Spiller v. St. Louis & S. F. R. Co., 8 Cir., 14 F.2d 284, affirmed in part and reversed in part 274 U.S. 304, 47 S.Ct. 635, 71 L.Ed. 1060.

*156 From the foregoing rules, it appears that the doctrine of laches is a matter of balancing equities between parties. In patent cases it is inequitable for an infringer to deprive the owner of a patent of royalties and other rights which the patent affords. It is equally inequitable for the patent owner to sleep on his rights and lead an infringer to make large investments in the belief that he is not infringing or that the patent rights are not to be pressed. Rome Grader & Mach. Corp. v. J. D. Adams Mfg. Co., supra; Westco-Chippewa Pump Co. v. Delaware Electric & Supply Co., 3 Cir., 64 F.2d 185; Pollitzer v. Foster, supra; Dwight & Lloyd Sintering Co., Inc., v. Greenawalt, supra; Wolf, Sayer & Heller, Inc., v. United States Slicing Mach. Co., 7 Cir., 261 F. 195; A. R. Mosler & Co. v. Lurie, supra, With this background of law, we shall consider the facts upon which the trial court reached its decision,

The trial court in its findings of fact detailed the relations of the parties and their negotiations relating to infringement upon which it based its conclusion that plaintiff was barred from recovery because of laches. 4 The plaintiff con *157 cedes that these findings are correct, but contends that the court erred in failing to take into account additional significant and controlling facts. It argues that the evidence shows that the delay in bringing action was occasioned by the defendant’s conduct in not permitting a promised inspection of the defendant’s plant and the intervention of World War II. In other words it is claimed that the delay was brought about by the conduct of the defendant and the war, and was not due , ,, , . „ ,M. , ,, , . to the lack of diligence by the plaintiff.

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213 F.2d 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potash-co-of-america-v-international-minerals-chemical-corp-ca10-1954.