Swan Carburetor Co. v. General Motors Corp.

43 F. Supp. 499, 52 U.S.P.Q. (BNA) 170, 1941 U.S. Dist. LEXIS 2294
CourtDistrict Court, N.D. Ohio
DecidedDecember 3, 1941
DocketNo. 18073
StatusPublished

This text of 43 F. Supp. 499 (Swan Carburetor Co. v. General Motors Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swan Carburetor Co. v. General Motors Corp., 43 F. Supp. 499, 52 U.S.P.Q. (BNA) 170, 1941 U.S. Dist. LEXIS 2294 (N.D. Ohio 1941).

Opinion

NEVIN, District Judge (sitting by designation) .

On January 20, 1939, cases Nos. 18073 and 19207, both pending in this court, were, by order of court, consolidated and ordered to be proceeded with thereafter as one cause under the title of the Swan Carburetor Company v. General Motors Corporation, No. 18073, consolidated cause.

The first case (No. 18073) was filed on June 12, 1934. In it recovery was sought [500]*500of royalties on manifolds manufactured by defendant, General Motors Corporation, from April 1, 1930, to March 31, 1934, inclusive. The second suit (No. 19207) was filed November 29, 1937. It covered the period of the production, use and sale of manifolds under the same contract from April 1, 1934, the last date involved in the other suit (No. 18073), to September 30, 1937, inclusive, the last date for payment period involved in the second suit.

A jury having been waived and the parties having consented to the transfer of the consolidated cause to the non-jury docket, the consolidated cause was, by order entered February 10, 1939, referred by the court to a Special Master, who was “directed to define and to report upon all of the issues as joined in the pleadings, and to set forth separately in his report his findings of fact- and conclusions of law thereon and to proceed and file his said report with the Clerk of this Court together with a transcript of the proceedings and of the evidence and the original exhibits.”

Thereafter, the consolidated cause came on to be heard before the Special Master, who, on July 19, 1940, filed his report with the clerk of this court. In his report, at the outset, the Special Master makes the following statement, which is helpful to a better understanding of the case presented. He says:

“The action is one at law in which a jury has been waived and proceeds as consolidated with Cause No. 19207.
“The issues are presented by the plaintiff’s. amended petitions, amended answers to the amended petitions, and an amended reply to the amended answer to the amended petition.
“The action is brought to recover royalties claimed to be due and payable under a certain patent licensing agreement entered into by and between the plaintiff and the defendant as of June 6th, 1923, a copy of which agreement is attached to the Amended Petition and is marked Exhibit A.
“By this agreement the defendant obligates itself, under certain conditions, to pay certain royalties to the plaintiff as owner of a certain then pending application for a patent upon an invention by one John W. Swan, the said application being for means for distributing fuel to internal combustion engines. The device is known as a manifold. A continuation of this application subsequently ripened into a patent to Swan No. 1,536,044 having claims for both means and method ‘to facilitate the distribution of fuel in internal combustion engines’ (P. X 2).
“There are, of course, other terms of this contract which will be considered if they appear to affect the issues of this case, and royalties under a Canadian patent also are involved.
“There is no dispute between the parties as to the number of manifolds made and sold which the plaintiff claims are comprehended by this contract, but the defendant contends that none of these manifolds are defined by the claims of the said patent, contends that they are not comprehended by the terms of the contract, and says that it should not be required to pay royalties upon them.
“Of itself this question ordinarily would have to be considered no differently than would any question of infringement of patent, but the question of infringement is greatly complicated in this case by the fact that in two other cases between these parties, and in one case between the plaintiff and The Reeke-Nash Company, who, it is alleged, is in such privity with defendant that the latter is bound by the decision as if it itself had been the party defendant, there have been determinations of facts and questions in issue by which these parties now, it is contended, must be considered to be bound.
“Both parties as to certain matters rely upon the bar of res judicata.
“The prior cases above referred to are:
“(1) Swan Carburetor Co. v. General Motors Corporation, D.C.N.D.Ohio E. Div., 42 F.2d 452, Westenhaver J. Action for royalties. In this case it was found that certain manifolds were within the same contract involved in the present suit. Judgment was rendered for the plaintiff. On appeal the judgment was affirmed upon procedural grounds. [6 Cir.] 44 F.2d 24.
“(2) Swan Carburetor Co. v. General Motors Corp., D.C.N.D.Ohio E. Div., Hahn J.1 This also was an action at law for royalties under the contract, and was tried to a jury. Judgment was' for the plaintiff. The defendant filed a cross bill in this suit seeking a reformation of the contract, which reformation was denied. The action on the [501]*501cross bill was heard as a separate suit in equity.
"(3) Swan Carburetor Co. v. Reeke-Nash Motors Co.1 This was a suit for infringement of patents. It was referred to Wm. B. Woods Esq. as Special Master Commissioner. The claims of the patent No. 1,-536,044 were found by him to be valid and infringed, and his report was confirmed by the District Court (Hahn J.).
“(4) General Motors Corporation v. Swan Carburetor Co. (two cases). Reeke Nash Motors Co. v. Swan Carburetor Co. [6 Cir., 1937] 88 F.2d 876. Under this caption the above General Motors cases in Law and Equity before Judge Hahn, and the Reeke-Nash case are reviewed on appeal.”

From the foregoing, it is apparent that there has been previous litigation, to some considerable extent, between the parties to the instant suit and between plaintiff herein and others.

In his report the Special Master makes (inter alia) the following findings of fact, to-wit:

“(8) I find that defendant has made, used or sold 423,066 passenger car manifolds known herein as 1932 Chevrolet manifolds, Part No. 836,726, which are of a type defined particularly by Claim 20 of this patent and that defendant is liable to the plaintiff for royalties of 15$ each for all of such manifolds made in the year 1931 and 17%$ each for all of such manifolds made in the year 1932, and 20$ each for all made in the years 1933, 1934, 1935, 1936 and the first three quarters of 1937.
“(9) I find that none of the other manifolds made, used or sold by the defendant, and which the plaintiff in this suit now claims are within the terms of the contract, are such manifolds as are comprehended by the claims of the Swan patent No.

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Cite This Page — Counsel Stack

Bluebook (online)
43 F. Supp. 499, 52 U.S.P.Q. (BNA) 170, 1941 U.S. Dist. LEXIS 2294, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swan-carburetor-co-v-general-motors-corp-ohnd-1941.