Rousso v. First Nat. Bank in Detroit

37 F.2d 281, 4 U.S.P.Q. (BNA) 414, 1930 U.S. App. LEXIS 2534
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 16, 1930
DocketNo. 5247
StatusPublished
Cited by6 cases

This text of 37 F.2d 281 (Rousso v. First Nat. Bank in Detroit) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rousso v. First Nat. Bank in Detroit, 37 F.2d 281, 4 U.S.P.Q. (BNA) 414, 1930 U.S. App. LEXIS 2534 (6th Cir. 1930).

Opinion

HICKENDOOPER, Circuit Judge.

The principal question in the instant case is whether the doctrine of Morgan v. Daniels, 153 U. S. 120, 125, 14 S. Ct. 772, 773, 38 L. Ed. 657, “that, where the question decided in the patent office is one between contesting parties as to priority of invention, the decision there made must be accepted as controlling upon that' question of fact in any subsequent suit between the same parties, unless the contrary is established by testimony, which in character and amount carries thorough eonviction,” is to be applied in litigation between one of the parties to an interference proceeding and one who was a stranger to such interference. The present ease was before this court upon a previous occasion, but, since the only question there presented was one of judicial discretion in denying interlocutory injunction, none of the present issues were then authoritatively determined. 287 F. 273.

On January 12, 1912, plaintiff filed application for patent upon a towel cabinet in which the ’towels were laid upon a towel support and threaded upon a rod which pass[282]*282ed up from said support, thence outwardly, downwardly, and into a receptacle where the other'end was fixed, preventing the removal or misuse of linen. While this application was pending, on December 31, 1912, one Harry Solomon likewise filed application for a safety towel cabinet in which the towels were threaded upon a movable rod which extended upwardly through the towels, outwardly toward the user, and thence downwardly into a soiled towel receptacle, which rod could be raised while the towels were being withdrawn or in use, but could not be pulled entirely from its opening because of a nut at one lower end, and which was not affixed to the bottom of the soiled towel receptacle at the other end so as to lock the towels, used or unused, upon the rod. A design patent to Rousso then already issued, which showed the Rousso structure forming the basis of his pending application, was cited against several of the Solomon claims which were then amended to avoid the reference and the patent issued under date of December 9, 1913. No interference was declared with the more generic claims of the Rousso application upon which patent No. 1,157,046, here in suit, issued on October 19, 1915.

Shortly after issue of the Rousso patent Solomon was served with warning notice that his device infringed the generic claims in suit1 and an application for reissue was thereupon filed by Solomon and an interference was declared with these claims of the Rousso patent. A large amount of evidence was taken, other applicants for patent were made parties to the interference, and the cause was prosecuted through all the patent office tribunals, including the Court of Appeals for the District of Columbia. The Examiner of Interferences awarded priority of invention to Rousso over Solomon in one interference, and in another, to which one Brigham was a party, priority was awarded to Brigham. Rousso purchased Brigham’s rights, whereupon he dropped out, and both Rousso and Solomon appealed to the Board of Examiners in Chief. There priority was awarded to Solomon. On appeal to the Commissioner the decision of the Examiners in Chief was reversed, and priority was awarded to Rousso on the ground that the proofs on behalf of Solomon were insufficient to establish reduction to practice at any time prior to Rousso’s filing date. A final appeal to the Court of Appeals for the District of Columbia resulted in the reversing of the finding of the Commissioner and in an award of priority to Solomon. 50 App. D. C. 333, 271 F. 799. After the decision of the Commissioner, Rousso had commenced suit for infringement against Solomon and a preliminary injunction had issued. When the opinion of the Commissioner was reversed Rousso also purchased Solomon’s rights, hut the application of Solomon for reissue was abandoned and no claim is made here under Solomon.

In the ease of Rousso v. Barber, 3 F.(2d) 740, which was an action for infringement of the claims of the Rousso patent here in suit, the Circuit Court of Appeals for the Third Circuit held that the doctrine of Morgan v. Daniels, supra, applied in a subsequent suit for infringement, brought by Rousso, in which suit the defendant relied .upon prior invention by Solomon which was the issue of the interference. In the present ease the records before the Court of Appeals for the Third Circuit and the Court of Appeals of the District of Columbia were introduced as physical exhibits for the purpose of advising the court of the state of those records and of the issues of fact and law there decided, but there was no stipulation that the evidence in either the Barber Case or the interference proceedings should be received in the present action as if taken herein. The evidence actually taken here below and constituting the present record differs very substantially from the evidence in the other two records, in that only one witness was here called to support the claim of prior invention by Solomon. The District Judge frankly stated' that he did not believe the testimony of this single witness and considered it wholly insufficient to sup[283]*283port the claim of Solomon’s prior invention because consisting wholly of recollection testimony unsupported by any contemporaneous record or physical exhibit. However, the District Judge felt constrained to follow the decision in the Barber Case, and held that, the plaintiff having introduced no new or other evidence than was introduced in the Barber Case and the interference proceedings, to negative prior invention by Solomon, priority was not established by the plaintiff Rousso “by testimony which in character and amount carries thorough conviction.” Such a ruling to be sound must be founded upon some established doctrine of equity, and counsel for defendant refer, as applicable either directly or by analogy, to the doctrines of res judicata, estoppel by judgment, the weight to be given to determinations of administrative tribunals, stare decisis, and comity.

Obviously, neither the doctrine of res judicata nor that of estoppel by judgment has any direet application because of lack of identity of the parties and want of mutuality of the estoppel. Cf. I. T. S. Rubber Co. v. Essex Co., 272 U. S. 429, 47 S. Ct. 136, 71 L. Ed. 335; Mineral Development Co. v. Ky. Coal Lands Co., 295 F. 259 (C. C. A. 6). But apart from this complete answer, there is another equally good as to the Court of Appeals of the District of Columbia. In passing upon an issue raised upon appeal in interference proceedings, the Court of Appeals of the District of Columbia acts as a branch or arm of the Patent Office, and .not in a judicial capacity. Frasch v. Moore, 211 U. S. 1, 9, 29 S. Ct. 6, 53 L. Ed. 65; Clements v. Kirby, 274 F. 575, 586 (C. C. A. 6). Thus, even as between the same parties, the decision of that court, in an appeal from the Commissioner of Patents, is not considered res judicata. Otherwise there would be no room for existence of the doctrine of Morgan v. Daniels.

Nor have the doctrines of stare decisis and comity more direct application. The first of these is founded upon the promotion of stability of legal principles in the decision of cases, and its effect is limited to questions of law as distinguished from questions of fact. The doctrine of comity also finds its justification in the great desirability of uniformity of decision.

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Bluebook (online)
37 F.2d 281, 4 U.S.P.Q. (BNA) 414, 1930 U.S. App. LEXIS 2534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rousso-v-first-nat-bank-in-detroit-ca6-1930.