Seismograph Service Corp. v. Offshore Raydist, Inc.

263 F.2d 5
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 17, 1958
DocketNos. 16067, 16924
StatusPublished
Cited by20 cases

This text of 263 F.2d 5 (Seismograph Service Corp. v. Offshore Raydist, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seismograph Service Corp. v. Offshore Raydist, Inc., 263 F.2d 5 (5th Cir. 1958).

Opinions

RIVES, Circuit Judge.

Seismograph Service Corporation and Honoré (who is not a party to these appeals) sought to enjoin Offshore Ray-dist Company and its privies from infringing the Honoré Patent, 2,148,267, and the Hawkins Patent, 2,513,316. The Hastings Instrument Company, Inc. was brought in as a third-party defendant, and filed a cross action against Seismograph. After extensive pre-trial proceedings and depositions and a trial lasting more than half a month, followed by the submission of briefs, the district court expressed its findings of fact and conclusions of law in a full opinion,1 as permitted by Rule 52(a), Federal Rules of Civil Procedure, 28 U.S.C.A., followed by a judgment dismissing Seismograph’s complaint and holding:

(1) Claims 2 and 4 of the Honoré Patent valid. From that holding neither party has appealed.

(2) Claims 2 and 14 of the Hawkins Patent invalid because, among other grounds, the patentee was not the real inventor.

(3) That relief for infringement of the Honoré Patent should be denied on the ground of unclean hands of Seismograph.

(4) Granting, on equitable grounds, to Hastings Instrument Com[7]*7pany and its vendees a sub-license in the geophysical field under the Honoré Patent. That part of the decree is moot for the future because the Honoré Patent has now expired.

(5) The validity of the Hastings Patent No. 2,528,240, brought forward in the cross-complaint was not attacked in the district court, but the court held that Seismograph had not infringed that patent. Neither party appealed from that holding.

(6) Denying all further relief to Hastings Instrument Company.

Thus, this appeal does not involve the validity of either the Honoré Patent or the Hastings Patent.

Seismograph in its brief urges that the opinion of the district court

“will shock the senses of propriety and justice of anyone having knowledge of the facts involved. From only a cursory reading of the opinion, it will be obvious that the decision was influenced by deep prejudice against this Appellant and its individual representatives and assumes the existence of improper motives and intentions that are not supported by the evidence. At no point in this opinion does there appear an impartial recitation of the evidence upon which the Court bases its conclusions. Significant and decisive evidence is completely ignored, some of which is so conclusive of certain issues that its omission is not explainable.”

In another part of its brief, Seismograph charges the district judge with an “accommodating correction of this obviously false statement” on the part of the witness Hastings. A careful study of the record in connection with the briefs and oral argument has convinced us that these intemperate charges against the district judge are wholly unfounded and improper.

In legally attempting to sustain its attack upon the judgment, the appellant states that the preponderance of the probative evidence was documentary and that our review of such evidence under the “clearly erroneous” doctrine of Rule 52(a) approaches a review clear of any presumption in favor of the trial court, citing Galena Oaks Corp. v. Scofield, 5 Cir., 1954, 218 F.2d 217, 218, and Stewart-Warner Corp. v. Lone Star Gas Co., 5 Cir., 1952, 195 F.2d 645, 647, 648. Appellant further says that the evidence, both verbal and documentary, also shows the trial judge to be clearly erroneous in his decision. While much of the documentary evidence relied upon by appellant is comprised of ex parte memoranda and notes, and while the language of the trial court is severe to the point of blistering the appellant’s conduct, we find that the trial court’s findings of fact are not clearly erroneous under Rule 52(a) but are supported by substantial evidence and that there is no evidence of prejudice and bias (preconceived or otherwise) on the part of the trial judge.

We state the facts briefly and chronologically with emphasis on documentary evidence. It is to be noted that the time in which most of the pertinent facts occurred is from May to October of 1947. For reference purposes, the principal characters in this suit are identified in the margin.2

The appellant, Seismograph Service Corporation, is engaged primarily in rendering professional consulting services to the petroleum industry in the field of geophysical prospecting. Phillips Petro[8]*8leum Corporation is one of its largest clients. The appellee third-party defendant, Hastings Instrument Company, Inc., is a small corporation dealing with experimentation and development in the field of radio, having as its principal officer and stockholder Charles E. Hastings. The Hastings Instrument Company, Inc., owns one-half of the stock in the primary defendant, Offshore Ray-dist, Inc.

The radio survey system, which is the subject of this litigation relates to the science of radio navigation and tracking in which the position of an object (whether on land, sea, or air) is accurately determined by an arrangement of transmitters and receivers of high frequency radio waves. The principle involved is called the heterodyne phase comparison principle which is discussed somewhat in detail in the margin.3 The [9]*9heterodyne phase comparison system was disclosed first by a Frenchman, one Etienne Augustin Henri Honoré. Ho-noré patented this principle in 1935 in the French patent No. 790,386 and in 1939 in the United States patent No. 2,148,267. The heterodyne phase comparison system disclosed by Honoré has only one pair of primary transmitters and one pair of primary receivers and is called a “single-dimensional” system, which gives only a one line-position which is, of course, inadequate for point detection. For clarification purposes, we should point out that by using a third primary transmitter (or an extra pair of transmitters), a second line-position may be established and point detection is given where these two line-positions intersect. This is the “two-dimensional” system. Both the systems in suit (the Hawkins-Lorac and the Hastings-Ray-dist) are essentially this “two-dimensional” type with all three of the primary transmitters in multiple modulation and also “fixed” or stationary, with the pair of primary receivers being “moveable” or located in the object to be tracked. In other words, the ship or vehicle does, its own plotting. With fixed transmitters in a multi-dimensional field, it is: possible to track more than one object in the field, where the moving transmitter can track only one object. The system disclosed by Hastings in the R-19 Bulletin as developed by him during the war used the moving transmitter. But regardless of whether the transmitter is moving or fixed, if the system uses a third transmitter (or an extra pair of transmitters) so as to get two line-positions, it is essentially a double Honoré system or a double heterodyne phase comparison system.

Shortly after World War II, the petroleum industry’s interest in oil exploration in the offshore areas of the Gulf of Mexico became acute. Small vessels would explore a given area by setting off [10]

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Bluebook (online)
263 F.2d 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seismograph-service-corp-v-offshore-raydist-inc-ca5-1958.