Shoemaker v. South Bend Spark Arrester Co.

22 L.R.A. 332, 35 N.E. 280, 135 Ind. 471, 1893 Ind. LEXIS 246
Indiana Supreme Court·Decided November 22, 1893·No. No. 16,341·Published·Cited by 15 cases

Opinion

Hackney, J.

The appellee sued the appellant, in the court below, upon a complaint alleging title to certain letters patent granted by the United States government, derived through a judgment of the St. Joseph Circuit Court theretofore rendered in an action between appellee’s assignors and this appellant, wherein the title to said letters patent was in issue and-was claimed by such assignors and by this appellant.

Enough of the issues and judgment in that case is pleaded in the complaint herein to show that said action was to quiet the title to said' letters patent, and settle the conflicting claims of the parties thereto, and to restrain the appellant from asserting adverse claims thereto. The title was found to be in others, and that this appellant had no interest therein. Upon the title so derived, the appellee sought and secured, in this suit, an injunction against the appellant from representing to the public, and to the dustomers and agents of the appellee, that he owned said letters patent, or had qny interest therein, and from issuing and publishing any demand for royalty or license fees for the use of the invention and improvement covered by such letters, and from threatening litigation with any perspn who had bought, or might buy or offer to buy, spark arresters covered by such patents, and from advertising that appellee had not the right to collect the price of any such sales, and from questioning appellee’s title to such letters.

[473]*473The theory of the complaint is that the false and ma: licious claims of title by appellant, and threats to collect royalties from appellee’s customers, and to involve them in litigation for infringements, was injurious to appellee’s business, and materially affected its property rights in said letters patent, and in the value of spark arresters made by it, in that such claims persuaded and deterred persons from buying them, and rendered their invention and investment valueless.

¿The appellant attacks the jurisdiction of the St. Joseph Circuit Court to adjudge upon the title to letters patent as pleaded in this complaint, and to enter the decree herein appealed from.

The allegations of the complaint before us do not disclose the character of the claims asserted in the former action by the appellant and by the appellee’s assignors, whether they grew out of letters granted to either, or whether they depended upon contracts between the parties under which interests were sold. By reference to the evidence in this case, we find that the complaint in the action involving title alleged an ownership in part by appellees’ assignors, and a dispute between this appellant and others named as to the ownership of the remaining interests, the character of the claims to such remaining interests, it was alleged, was unknown, and the allegations did not state the character or source of the claims of the plaintiffs in that case. The evidence in that case is not before us, and we would be slow to look into it to ascertain the jurisdiction of the court, if it were. The finding having been adverse to this appellant his pleadings in that case can not supply the light necessary. The decree in that case does not disclose the character of the claims alleged to be made by any of the parties, and does not afford the means of enlightening us upon this subject.

[474]*474We are, then., as to the former proceeding, obliged to rest upon such presumptions as the law indulges from the absence of any information upon the subject. The inquiry is suggested by the contention of the appellant that in the former case, the decree in which is pleaded as the source of appellee’s title in this case, the. St. Joseph Circuit Court had no jurisdiction, and in consequence its decree was void.

It is a well settled rule that where a court of general or superior jurisdiction, in some view of the case, may have jurisdiction, and it does not affirmatively appear, from the record, that the case is one in which jurisdiction does not exist, jurisdiction will be presumed. In view of this rule, we must presume in favor of the jurisdiction of the court in. that case if, under any reasonable circumstances, jurisdiction could have existed.

The insistence of the'appellant is that no jurisdiction existed to try conflicting claims to letters patent, because, as urged, the rights in such letters are granted under and depend upon the federal laws. To this point are cited Rich v. Hotchkiss, 16 Conn. 409; Brooks & Morris v. Stolley, 3 McLean’s Rep. 523; Goodyear v. Union India Rubber Co., 4 Blatchf. 63; Duke v. Graham, 19 Fed. Rep. 647; Campbell v. James, 2 Fed. Rep. 338, and Elmer v. Pennel, 40 Me. 430.

The effect of the holdings in these cases is, as we understand them, that, where the validity of the patent or infringement is the question directly involved, the United States courts have jurisdiction. But, by an almost unbroken line of decisions, it has been held that even where the validity of the patent is involved, if it arises collaterally, the State courts may have jurisdiction. To this effect are the following cases: Albright v. Teas., 106 U. S. 613; Ingalls v. Tice, 14 Fed. Rep. 297; Middlebrook v. Broadbent, 47 N. Y. 443; Rich v. Hotchkiss, supra; Bur[475]*475rall v. Jewett, 2 Paige, 133; Sherman v. Champlain, etc., Co., 31 Vt. 162; Dale, etc., Mfg. Co. v. Hyatt, 125 U. S. 51; Slemmer’s Appeal, 58 Pa. 155; Parkhurst v. Kinsman, 2 Halsted’s Chan. Rep. 600; Rice v. Garnhart, 34 Wis. 453; Saxton v. Dodge, 57 Barb. 84.

The rule which vmay be deduced from these cases is, that where the cause of action depends primarily upon some contract of the parties, jurisdiction exists in the State courts, although the validity of the patents may arise incidentally.

This rule has been applied to the enforcement of the assignment of letters patent under agreement of the parties and to receivers appointed under State statutes. Binney v. Annan, 9 Am. Rep. 10; Fuller, etc., Co. v. Bartlett, 60 Am. Rep. 838.

Such an infinite variety of transactions may arise and find enforcemept in the State courts, under the rule stated, that we are not permitted to presume that the title involved in the case pleaded did not depend upon a contract enforceable within the jurisdiction of the St. Joseph Circuit Court. We have been cited to no case, and our researches have discovered none, where the title to letters patent necessarily involved the validity of the patent or the infringement of the rights of the patentee as granted by the laws of the United States. Ownership, legal or equitable, of the letters patent, or of an interest in the invention, does not, in our opinion, necessarily involve the validity of the patent or its infringement, for, presuming the patent to he valid and in no manner issued or used contrary to the laws of the government or the rights of patentees of similar inventions, interests may arise and be enforced under contracts between the parties and within the jurisdiction of the State courts.

As above indicated, the jurisdiction of the St. Joseph Circuit Court, in the present case, is attacked. The as[476]

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Shoemaker v. South Bend Spark Arrester Co., 22 L.R.A. 332, 35 N.E. 280, 135 Ind. 471, 1893 Ind. LEXIS 246 (Ind. 1893).

22 L.R.A. 332 (Shoemaker v. South Bend Spark Arrester Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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