Smith v. Vulcan Iron Works

165 U.S. 518, 17 S. Ct. 407, 41 L. Ed. 810, 1897 U.S. LEXIS 1992
Supreme Court of the United States·Decided February 15, 1897·No. Nos. 200, 639·Published·Cited by 151 cases

Opinion

165 U.S. 518 (1897)

SMITH
v.
VULCAN IRON WORKS.
NORTON
v.
WHEATON.

Nos. 200, 639.

Supreme Court of United States.

Argued January 19, 1897.
Decided February 15, 1897.
PETITIONS FOR WRITS OF CERTIORARI TO THE COURT OF APPEALS FOR THE NINTH CIRCUIT.

*519 Mr. Calderon Carlisle (with whom was Mr. William G. Johnson on the brief) for the Vulcan Iron Works.

Mr. John H. Miller (with whom was Mr. M. Estee on the brief) for the petitioners in both cases.

Mr. Milton A. Wheaton in person for himself.

MR. JUSTICE GRAY, after stating the case, delivered the opinion of the court.

The act of March 3, 1891, c. 517, establishing Circuit Courts of Appeals, after providing in section 5, for appeals from the Circuit Courts and District Courts directly to this court in *520 certain classes of cases; and, in section 6, for appeals from final decisions of those courts to the Circuit Court of Appeals in all other cases, including cases arising under the patent laws; further provides, in section 7, that "where, upon a hearing in equity in a District Court, or in an existing Circuit Court, an injunction shall be granted or continued by an interlocutory order or decree, in a cause in which an appeal from a final decree may be taken under the provisions of this act to the Circuit Court of Appeals, an appeal may be taken from such interlocutory order or decree granting or continuing such injunction to the Circuit Court of Appeals: Provided, that the appeal must be taken within thirty days from the entry of such order or decree, and it shall take precedence in the appellate court; and the proceedings in other respects in the court below shall not be stayed, unless otherwise ordered by that court, during the pendency of such appeal." 26 Stat. 828.

The questions presented by each of these cases are whether, in a suit in equity for the infringement of a patent, an appeal to the Circuit Court of Appeals from an interlocutory order or decree of the Circuit Court, granting an injunction, and referring the case to a master to take an account of damages and profits, may be from the whole order or decree, or must be restricted to that part of it which grants the injunction; and whether the Circuit Court of Appeals, upon such an appeal, may consider and decide the merits of the case, and, if it decides them in the defendant's favor, may order the bill to be dismissed.

Upon these questions there has been some diversity of opinion among the Circuit Courts of Appeals of the different circuits. But those courts have now generally concurred in taking the broader view of the appeal itself, and of the power of the appellate court.

In the earliest of such appeals, the cases were examined on the merits, and, upon a reversal of the order or decree appealed from, the authority to direct the bill to be dismissed was assumed, without question, in the Circuit Courts of Appeals for the Fifth Circuit: Dudley E. Jones Co. v. Munger Co. *521 (December, 1891), 2 U.S. App. 55; for the First Circuit: Richmond v. Atwood (February, 1892), 5 U.S. App. 1; and for the Second Circuit: American Pail Co. v. National Box Co. (July, 1892), 1 U.S. App. 283. The cases in the Fifth and First Circuits were afterwards reconsidered upon petitions for rehearing. In the Fifth Circuit, the decree was modified so as only to direct the injunction to be dissolved. Dudley E. Jones Co. v. Munger Co. (May, 1892), 2 U.S. App. 188. But in the First Circuit, the power of the Circuit Court of Appeals, upon such an appeal, to consider the merits of the case, and to order the bill to be dismissed, was maintained, after thorough discussion of the subject on principle and authority, in an opinion delivered by Judge Aldrich. Richmond v. Atwood (September, 1892), 5 U.S. App. 151.

This view has since prevailed, not only in the First Circuit: Marden v. Campbell Press Co. (May, 1895), 33 U.S. App. 123; Wright & Colton Co. v. Clinton Co. (May, 1895), 33 U.S. App. 188, 206, 236; but also in the Second Circuit: Florida Construction Co. v. Young (December, 1892), 11 U.S. App. 683, 685; Bidwell Cycle Co. v. Featherstone (August, 1893), 14 U.S. App. 632, 655; Curtis v. Overman Wheel Co. (December, 1893), 20 U.S. App. 146; Westinghouse Brake Co. v. New York Brake Co. (October, 1894), 26 U.S. App. 248, 358; Kilmer Manuf. Co. v. Griswold (April, 1895), 35 U.S. App. 246; in the Third Circuit: Union Switch Co. v. Johnson Signal Co. (May, 1894), 17 U.S. App. 609, 611, 620; Erie Rubber Co. v. American Dunlop Tire Co. (July, 1895), 28 U.S. App. 470, 513, 522; in the Seventh Circuit: Temple Pump Co. v. Goss Pump Co. (October, 1893), 18 U.S. App. 229; Northwestern Stove Co. v. Beckwith (October, 1893), 18 U.S. App. 245; Electric Manuf. Co. v. Edison Electric Co. (May, 1894), 18 U.S. App. 637, 643; Card v. Colby (November, 1894), 24 U.S. App. 460, 480, 486; Standard Elevator Co. v. Crane Elevator Co. (October, 1896), 46 U.S. App. ___; in the Eighth Circuit: Lockwood v. Wickes (June, 1896), 40 U.S. App. 136, overruling S.C. (December, 1895), 36 U.S. App. 321; and in the Ninth Circuit: Consolidated Cable Co. v. Pacific Cable Co. (July, 1893), 15 U.S. App. 216; *522 Butte City Railway v. Pacific Cable Railway (February, 1894), 15 U.S. App. 341; Vulcan Iron Works v. Smith (May, 1894), 15 U.S. App. 577; Wheaton v. Norton (January, 1895), 29 U.S. App. 409, and (October, 1895), 44 U.S. App. 118, 170.

In the Fourth Circuit, the question does not appear to have arisen in a patent case. But where, upon a bill in equity to restrain a supervisor of registration from interfering with the right to vote at the election of delegates to a convention to revise the constitution of the State of South Carolina, the Circuit Court of the United States for the District of South Carolina had, by successive orders, granted and continued a temporary injunction, the Circuit Court of Appeals, upon appeal from these orders, entered a decree, not only reversing the orders, but directing the bill to be dismissed; the Chief Justice saying, "Although the appeal is from interlocutory orders, yet, as we entertain no doubt that such a bill cannot be maintained, we are constrained, in reversing these orders, to remand the cause with a direction to dismiss the bill." Green v. Mills (1895), 25 U.S. App. 383, 398. An appeal from that decree was dismissed by this court, without touching this question. 159 U.S. 651.

In the Sixth Circuit, on the other hand, in a case in which the Circuit Court had entered an interlocutory decree sustaining the validity of the patent, adjudging that there was an infringement, ordering an account of damages and profits, and granting an injunction, and had allowed an appeal from so much only of that decree as granted the injunction, and denied an appeal from the rest of the decree, the Circuit Court of Appeals, in an opinion delivered by Mr.

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