Shevin v. International Inventors, Inc.

353 So. 2d 89
CourtSupreme Court of Florida
DecidedDecember 8, 1977
Docket51102
StatusPublished
Cited by4 cases

This text of 353 So. 2d 89 (Shevin v. International Inventors, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shevin v. International Inventors, Inc., 353 So. 2d 89 (Fla. 1977).

Opinion

353 So.2d 89 (1977)

Robert L. SHEVIN, Chief Administrator of the Department of Legal Affairs, State of Florida, Appellant,
v.
INTERNATIONAL INVENTORS, INC., Appellee.

No. 51102.

Supreme Court of Florida.

December 8, 1977.

Robert L. Shevin, Atty. Gen., and Martin S. Friedman, Asst. Atty. Gen., Tallahassee, for appellant.

Steven A. Anderson of Anderson, Thorn, Grose & Quesada, Tampa, for appellee.

*90 PER CURIAM.

The following [omitting formal parts] is the Final Judgment which is the subject of this appeal.

"1. Plaintiff is a corporation organized under the laws of the State of Virginia for the purpose of evaluating, representing for manufacture, and distributing invention ideas. Plaintiff has engaged in the business continuously and without interruption in the State of Florida and specifically in Hillsborough County from the date of its organization.

"2. On October 1, 1976, an act relating to inventions became effective as the law of the State of Florida. Said act, House Bill 3321, Chapter 501.136 Florida Statutes provides that invention development service contracts shall meet certain requirements and shall contain certain disclosures. Plaintiff, being one of, if not the largest companies engaged in such business in the State of Florida, falls within the regulatory scope of said law.

"3. Non-compliance by Plaintiff with the provisions of Chapter 501.136 could have the result of rendering any contract between Plaintiff and Plaintiff's customers void and unenforceable and might furthermore result in an award against the Plaintiff in the amount of or in excess of $3,000. Non-compliance by Plaintiff could also result in the filing of actions for injunctive relief against Plaintiff in accordance with the statute.

"4. Since becoming aware of the enactment of Chapter 501.136 the Plaintiff has attempted in good faith to make its contracts and operations comply with the intent of Chapter 501.136, having obtained legal counsel and having otherwise expended considerable amounts of time and money in attempting to comply. However, due to substantial and numerous defects, ambiguities and inconsistencies in the law, the Plaintiff has been in serious doubt as to the manner in which it might comply with the law, whether its contracts and operations comply with the law, and as to what its rights and liabilities under the law are.

"5. This is a proper action for declaratory relief under Chapter 86.011 Florida Statutes.

"6. Chapter 501.136(1)(b)3, Florida Statutes is vague, ambiguous and subject to numerous interpretations and the legislative intent cannot be determined without hypothecation or guessing. Furthermore, even if one of the numerous interpretations posed at trial were settled on, sub-section (1)(b)3 constitutes an unreasonable classification of persons protected by the law.

"The expressed purpose of Chapter 501.136 is `... to safeguard the public against fraud, deceit and financial hardship and to foster and encourage competition and fair dealing in the field of invention development services ...' Subsection (1)(b)3 establishes a discriminatory scheme which bears no reasonable or rational relationship to that stated purpose, resulting in an unequal application of and protection under the law. Furthermore, the definition of `customer' under that sub-section, being based upon either the financial worth of the customer or of the business in which he is engaged (depending on which of the numerous interpretations is settled on), unreasonably requires Plaintiff to obtain financial information from the customer, thereby forcing the Plaintiff to infringe upon the customer's privacy. The natural result of this classification and the intrusion into the customer's financial privacy will be to have a chilling effect of Plaintiff's business in many instances and to totally frustrate Plaintiff's business in others.

"7. Subsections (6)(k) and (7)(b)3 of Chapter 501.136 require Plaintiff and other invention developers to disclose in the first oral communication with a customer and in at least ten point boldface type within the contract itself the total number of customers who have contracted with the invention developer, except for those who have contracted within the last thirty days, as well as the number of customers who have received, by virtue of the invention developer's performance, an amount of money in excess of the amount of money paid by such *91 customer to the invention developer. This requirement, particularly when viewed in terms of the vague and ambiguous definition of `customer' as discussed in the preceeding [sic] paragraph, places Plaintiff and other invention developers in an impossible position. In the first place, requiring Plaintiff to disclose the number of its customers and its success factor places it in the dilemma of, on the one hand, making material misstatements of fact to potential customers or, on the other hand, violating the apparent intent of the law. Furthermore, the requirement of reporting plaintiff's success factor will place an unreasonable burden upon invention developers in terms of obtaining and maintaining information relative to the continuing income of their present and former customers. This statutory provision is onerous to Plaintiff and others in the industry and is effectively prohibitive to their right to engage in business in this state without unreasonable or unnecessary regulation.

"8. Subsection (1)(d)3 excludes from the definition of `invention developer' and therefore, from regulation, `any person whose gross receipts from contracts for invention development services ... do not exceed 10% of his gross receipts from all sources during the fiscal year preceeding [sic] the year in which any contracts or invention development services is signed.' The legislative intent here is totally unclear. However, regardless of intent, the real and practical effect of this exclusion is to exempt from regulation:

"(1) Conglomerates and large, diversified enterprises which may be substantially involved in the invention development business yet receiving less than 10% of their gross receipts annually from that function;
"(2) Part-time or occasional invention developers who engage in the business as a secondary or occasional source of income;
"(3) Persons or entities who may be fully engaged in the business of invention development but who have been in existence less than one year.

"There is no rational consistency or logic to these exclusions and they bear no rational relationship to the stated legislative purposes of safeguarding the public and of promoting competition in the field of invention development services. The Court is not persuaded by the state's argument that big businesses or conglomerates may be less suspect or have a higher standard of morals than smaller or less diversified businesses. Such a suggestion has no warrant in fact and its suggestion is totally contrary to the American experience. The purposes of this statute are not served by this unreasonable and arbitrary classification. In fact, the contrary seems true.

"9. Subsections (2)(b), (6)(h) and (7)(b)1 all place unreasonable requirements upon the Plaintiff and others similarly situated. Subsection (2)(b) unreasonably requires Plaintiff to anticipate the amount of fees and costs which might be incurred in speculative future contracts with its customers as well as to provide its customers with copies of those possible future contracts. Subsections (6)(h) and (7)(b)1 unreasonably require disclosure of commissions to Plaintiff or its agents.

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