Rogers v. Riessner

30 F. 525, 1887 U.S. App. LEXIS 2271
CourtU.S. Circuit Court for the District of Southern New York
DecidedMarch 28, 1887
StatusPublished
Cited by2 cases

This text of 30 F. 525 (Rogers v. Riessner) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Southern New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. Riessner, 30 F. 525, 1887 U.S. App. LEXIS 2271 (circtsdny 1887).

Opinion

Wheeler, J.

From the pleadings and proofs it appears that the orator and one Daniel W. Norris, who owned.letters patent No. 195,385, .dated September 18, 1877, granted to him for improvements in incased glass vessels, entered into a partnership for the purpose of mailing and [527]*527soiling .the patented articles, and selling territorial rights, by the terms of which the orator furnished $1,000 as his share of the capital, and Norris the use of the patent, the title to which he retained; and the proceeds of. any territory which might be sold or leased were to be equally divided between them, all arrangements for that purpose being subject to the approval of Norris. They sold a quarter interest in the patent to one William W. Burgess, which Norris conveyed to him, February 8, 1878, and the proceeds of the sale, and a like proportion of the capital furnished by the orator, became, by their understanding, a part of the common property. The patent was reissued July 9. 1878, and Norris obtained letters patent No. 208,628, dated October 1, 1878, for improvements in like vessels; and on the eighth of April, 1879, the former patent was again reissued. Then, June 6, 1879, the orator and Norris entered into another agreement, explanatory of and supplementary to the former, by the terms of which it "was declared that any definite or certain reduction in the capital of Norris, (the patents,) resulting from the action of the firm, affected the capital of the orator in the same ratio; that all letters patent and reissues, for improvements in the same class of inventions in addition to those provided for in the former agreement, should be at the expense of the firm; that the orator should have three-eighths of the proceeds of all said letters patent, and of the proceeds of letters patent No. 195,385, including reissues of the-same; that, in case of dissolution, the orator should have the privilege of taking such portion of the $1,000 furnished by him as should remain after making the deduction provided for, and Norris should have the privilege of taking whatever interest might remain in the letters patent by paying a proportionate amount of the expense of those which were at the expcnisa of the firm; and that, “in case of negotiations with any other party pending at any time,”' the orator should “have reasonable and ample time in which to act on such negotiation, thereby reducing the same to fixed and definite proceeds before said Norris” should “be permitted to effect a dissolution of said partnership as” therein “ provided for; and if negotiations bo completed with anj1- other party, whereby any fixed and definite amount of money or other property” should “become due said firm as royalties or otherwise, at any fixed and definite and future time, nothing” therein “contained” should “be construed as in any way depriving said Rogers of his full share, as” therein “provided for, of such amount.” Alter that, June 23, 1879, and while this partnership agreement was in force, a contract was entered into, on which the orator acted, and to which he consented, between Norris and .Burgess and the firm of 0. Riessner & Co., which then consisted of the defendant Riessner and two others, and now consists of the defendants,- — the fact that the orator had an interest in the contract being understood by all engaged in making it, — by the terms of which Norris and Burgess agreed to give that firm tlie exclusive right to malte and sell the patented improvements throughout the United Btates, to the end of the term of the patent, and that firm agreed to pay certain license fees monthly, and to make returns quarterly to Norris, and Norris had the right -to terminate the agreement upon fail-[528]*528tire'to make return or payment for 10 days, and Riessner & Co. on four months’ notice.

" While this agreement was in force, September 11, 1879, Norris gave notice of the dissolution of the partnership between him and the orator, and thereafter claimed that the orator had no interest in or right to the three-eighths of the license fees or royalties accruing due from C. Riessner & Co., and November 4, 1879, assigned all his remaining interest in the patents to one Wesley Young, subject to the contract with C. Riessner &' Co. Thereupon, November 7, 1879, the orator commenced suit against Norris in the state courts of Illinois, where they resided, to have his rights to the three-eighths of the license fees decreed to him, arid for an injunction to prevent the collection of the amount due on that share by Norris. Riessner & Co. were informed of this litigation, and withheld payment of the share claimed by the orator. In January, 1880, C. Riessner & Co. failed to make payment of the royalties of the December previous, due January 1st, for more than 10 days, and Norris claimed the right to terminate the contract on that ground. On March 26, 1880, the court of Illinois, in which the suit between the orator and Norris was pending, decided that the orator was entitled to the three-eighths interest in the license fees accruing under the contract with G. Riessner & Co., and decreed that Norris execute an assignment of that share of the interest in that contract, and that, in default of such execution by Norris, the same be made by a master of the court, which was done. C. Riessner & Co. were fully informed of this decree, and soon thereafter'paid to the orator the amount of that share of the royalties up to the first day of April, 1880. Norris appealed from the decree, and Riessner & Co. retained the three-eighths share from him', and paid it to the orator monthly, to November 1, 1882. On the twentieth of that month the supreme court of Illinois reversed the decision in favor of the1'orator, and. the orator immediately applied for a rehearing. Riessner & Co. were informed of this, and on December 20th wrote to the orator that, as the ease had then been decided in favor of Norris, they did not feel justified in paying him any more until a final decision was reached; that until then they should withhold all further amounts; and, if the decision should come in his favor, he would at once receive áll that was due him. After that, relying on the decision already made, they made terms with the assignees of Norris, and those acting with him and under him. On June 16, 1888, the supreme court of Illinois affirmed the original decree in favor of Norris, and, on July 3d after, Riessner & Co. paid to the orator’s attorney the three-eighths of the royalties for November and December, 1882, and gave receipts therefor. They have declined to pay him any further royalties, and this suit is brought for au account and recovery of the same.

The most important question that is made is whether the orator was entitled to the three-eighths of the license fees after the dissolution of the partnership. The decision of the supreme court of Illinois, having jurisdiction of the parties and the subject, is conclusive, as between the orator and • Norris, but not as between the orator and C. Riessner & [529]*529Co., for that firm was not a party to that suit, although the members had knowledge of it, and for a time expressed themselves to be willing to abide by its result. The decision of that court is, however, entitled to much weight as an authority upon the question involved. The first partnership agreement shows clearly that the proceeds of the disposition of the right secured by the patent were to become partnership assets, belonging to both.

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Cite This Page — Counsel Stack

Bluebook (online)
30 F. 525, 1887 U.S. App. LEXIS 2271, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-riessner-circtsdny-1887.