Southwestern Brush Electric Light & Power Co. v. Louisiana Electric Light Co.

45 F. 893, 1891 U.S. App. LEXIS 1852
CourtU.S. Circuit Court for the District of Eastern Louisiana
DecidedApril 18, 1891
StatusPublished
Cited by3 cases

This text of 45 F. 893 (Southwestern Brush Electric Light & Power Co. v. Louisiana Electric Light Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southwestern Brush Electric Light & Power Co. v. Louisiana Electric Light Co., 45 F. 893, 1891 U.S. App. LEXIS 1852 (circtedla 1891).

Opinion

Per Curtam.

The complainant has brought suit against the Louisiana Electric light Company for infringement of patent 219,208, which was granted to Charles F. Brush, September 2, 1879, for certain new and useful improvements in electric lamps; the improvements consisting in a device for burning two pairs of carbons successively in one lamp by automatically transferring the luminous arc from the pair first lighted when burned out to a second and fresh pair. The lamp, with the improvement, is known as the “Double Carbon Lamp,” and is in nearly -universal use for all-night lighting of streets and public places. A single pair of carbons will last only about seven hours. By the use of the patented improvement light is maintained throughout the night without renewing the carbons, as would otherwise bo necessary. The case now comes before the court in a motion for preliminary injunction, and shows [894]*894that the Brush Electric Company., having acquired from Charles P. Brush the exclusive license and control to the patent aforesaid under a contract which gave it the sole and exclusive right to manufacture, sell, rent, use, or otherwise dispose of the apparatus described, in and covered by said patent throughout the whole of the United States, executed to the complainant an exclusive license and right to rent, sell, and use the invention in the state of Louisiana; that the defendant has infringed the said patent; that the Brush Electric Company has become hostile to the complainant, and declines to join in the action, and is therefore made a defendant. The Brush Electric Company is an Ohio corporation. It has not been served with process in this cause, nor does it appear. The patent has been sustained upon final hearing in the sixth and seventh circuits, and preliminary injunctions against infringers have been granted in several cases not yet heard upon the merits. The Louisiana Electric Light Company, the only defendant before the court, does not contest the validity of the patent, nor deny the infringement charged. It, however, opposes the granting of the preliminary injunction asked for.

1. It is urged that the necessary parties are not before the court to authorize the granting of an injunction. It is contended (a) that the complainant-is a mere licensee, and cannot maintain a suit for infringement unless the owner of the patent is joined as complainant, or at least is before the court; and (6) that the license given by the Brush Electric Company to the complainant has been revoked and annulled, according to the terms thereof, by the parent company, and the complainant no longer has any rights whatever in the patent.

2. It is urged that the injunction should not be issued because of the inconvenience to the public necessarily resulting, and the hardship thereby unnecessarily imposed upon the defendant company, the patented improvement being but a trifling part of the costly machinery composing a large and extensive plant.

3. It is said that the injunction should not issue because the complainant has been guilty of laches in asserting its rights.

These questions have been elaborately argued both orally and by brief, and have been given careful attention. We find it necessary at this stage’of the case to decide only as to whether the preliminary injunction should issue on account of the public and private inconvenience necessarily resulting. It appears by the affidavits and exhibits that the Southwestern Brush Electric Light & Power Company was organized in the year 1881, with a capital stock of $300,000, for the purpose, among other things, of supplying the “cities, towns, and parishes or counties in the states of Louisiana and Mississippi, or either of them, and the streets, public buildings, hotels, mills, factories, stores, and houses therein with light under the various inventions or letters patent known as the ‘Brush-Electric Light; ’ ” that it thereafter entered into a very onerous contract with the Brush Electric Company of Cleveland, Ohio, by which for the various patents, including the one herein sued on, it assigned and conveyed to the said Brush Electric Company 48 per cent, of its capital [895]*895stock, and 48 per cent, of any increase of stock thereafter, and agreed that the dividends on said 48 per cent, of stock should be 48 per cent, of the net earnings, (no part of the same to be used for account of or for extension of business.) and assumed other burdensome obligations. The remaining 52 per cent, of stock was subscribed for by individual parties, and appears to have been paid up in full in cn,sh. The company established works, with expensive machinery, secured contracts for lighting sheets and public places, and entered upon business according to the purposes of its charter. Business was carried on under difficulties and without favorable results until 1888, when, the company being involved in controversies with the parent company, and overwhelmed with debt, failed. Its property was seized under executions issued on large judgments against it; and everything it had in the way of plant, machinery, lamps, wires, etc., was sold out, leaving the company completely stranded, with a large indebtedness still hanging over it. During its active operations it introduced, and at the time the company was closed out there was in use in the city of Now Orleans, a large number of double-carbon lamps of the kind covered by the patent in issue in this case, which lamps, passing through various hands after having been sold by the marshal, came to and are now in the possession and use of the defendant company, and constitute about one-sixth oí the double-carbon lamps now used by the defendant company. At this hearing the complainant company is an insolvent corporation. It lias no lighting stations, no dynamos, no lamps, no lines, no franchises, and no money to procure any of these things. If the city of Now Orleans were buried in darkness it could not furnish one electric spark to help light it. The affidavits show that the defendant, the Louisiana Electric Light Company, is extensively engaged in the business of supplying electric light to the city and citizens of New Orleans; that it has in operation for that purpose a central station, containing about 80 arc-lighting dynamos, propelled by engines of over 4,000 horse power, about 1,(500 arc lamps, and over 200 miles of line wire. It is lighting the streets and wharves of the city by contract with the municipal authorities, and hotels, theaters, and places of business, by contract with private consumers. In all its arc lights which run all night it uses double-carbon lamps. The said company has a paid-up capital slock of $500,000, and a plant which cost, over $800,000. Its solvency at present, and its future ability to respond for any damages growing out of the infringement complained of, is unassailed in this case. An injunction, as asked for, would, temporarily at least, until substitutes could be supplied, compel the defendant to slop business, breaking its contract with the public authorities as well as with private consumers, to the great injury and inconvenience to the public. Further than this, it appears that, even if the defendant company could continue to carry out its contracts and furnish light to the public by substituting single lamps for double lamps, still the inconvenience and injury to the public would be great because of the poor service while making such substitution, and thereafter while trimming the lamps in the middle of the night; and the inconvenience and injury [896]

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Bluebook (online)
45 F. 893, 1891 U.S. App. LEXIS 1852, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwestern-brush-electric-light-power-co-v-louisiana-electric-light-circtedla-1891.