Tom Lockerbie, Inc. v. Fruhling

207 F. Supp. 648, 134 U.S.P.Q. (BNA) 564, 1962 U.S. Dist. LEXIS 5616
CourtDistrict Court, E.D. Wisconsin
DecidedAugust 28, 1962
Docket58-C-287
StatusPublished
Cited by6 cases

This text of 207 F. Supp. 648 (Tom Lockerbie, Inc. v. Fruhling) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tom Lockerbie, Inc. v. Fruhling, 207 F. Supp. 648, 134 U.S.P.Q. (BNA) 564, 1962 U.S. Dist. LEXIS 5616 (E.D. Wis. 1962).

Opinion

GRUBB, District Judge.

This is an action for misappropriation of a trade secret and for infringement of U. S. Letters Patent No. 2,854,827, hereinafter referred to as the “Lockerbie” patent. The patent and trade secret in suit relate to an apparatus for cooling water to be circulated through a tank to an external heat exchanger, also known as an air agitated ice builder, commonly used in the dairy industry. Prior to trial the issue of damages was severed and reserved for consideration after judgment on the merits.

The court has jurisdiction of the parities and of the subject matter of this action under the patent laws of the United States.

Plaintiff, Tom Lockerbie, Inc., hereinafter referred to as “Lockerbie,” is a New York corporation having its principal place of business in the City of Utica. It is the owner by assignment of the patent in issue. Defendant, Frederick Fruhling, a citizen of the State of Wisconsin, is the president and a majority stockholder of the corporate defendant, Continental Equipment Corp., a Wisconsin corporation having its principal place of business in the City of Milwaukee, hereinafter referred to as “Continental.” Defendant, John Frederic Dunckel, is a citizen of Wisconsin. He is a former employee of Lockerbie, a co-inventor of the patent in suit, and is presently employed as sales manager and purchasing agent of Continental.

The air agitated ice builder defined in the claim of the Lockerbie patent * consists of an insulated tank containing water, wherein a refrigerant coil is disposed in vertical banks of parallel loops. Ice forms and is stored on the vertical banks of the refrigerant coil. Water leaves the tank through an outlet pipe at a temperature of 32° to 34° F. It returns to the tank from the external heat exchanger at a warmer temperature of about 38° to 40° F., entering the tank through an inlet pipe.

Ice located near the warm water inlet melts more rapidly than that situated near the outlet in contact with already cooled water. Agitation of the circulating water prevents solid ice formations near the exit pipe and promotes the uniform melting of the ice banks throughout the tank which furthers the cooling of the water.

Agitation of the circulating water is accomplished by the introduction of air within the tank. The air agitation means consist of a plurality of elongated air lines or nozzles with small holes drilled in their circumference and supplied with pressurized gas. The nozzles are located on the bottom of the tank between the parallel banks of refrigerant coil. Bubbles of air are forced out of the small holes at a controlled rate and rise between the banks of ice formed on the refrigerant coil. The air bubbles provide uniform agitation of the water adjacent to the ice banks and promote the even melting thereof.

The trade secret allegedly misappropriated by defendants is as set forth in the following statement:

“Air agitators throughout the tank induced from the bottom, corn *651 bined with an arrangement of a plurality of spaced vertically arranged coils, between which the air agitation functions.”

Defendant Dunckel was employed by Lockerbie in 1952 as a dairy equipment salesman. He was made secretary of the company in 1953 and vice president in 1956. Late in 1952,' Dunckel, Thomas E. Lockerbie, who is plaintiff’s president, and DeForrest G. Perryman developed and completed a working model of an air agitated ice builder of the type of apparatus defined by the patent in suit. Patent application Serial No. 395,-184 in respect to this apparatus was filed on November 30, 1953. Dunckel assigned his interest therein to Thomas E. Lockerbie who later assigned the same to plaintiff. This application matured into the patent in suit which was issued on October 7, 1958.

During the course of his employment with Lockerbie, Dunckel’s major experience was with the production and sale of the Lockerbie air agitated ice builder constructed in accordance with the specifications of the Lockerbie patent. Dunckel also made or supervised the making of all engineering drawings for this machine.

Dunckel and Fruhling had been acquainted since 1937 and, during the course of years, met occasionally at dairy shows. In May of 1957, while Dunckel was on a business trip for Lockerbie, he visited Fruhling at the Continental plant in Milwaukee.

In June 1957, Fruhling saw Dunckel at the Lockerbie plant in Utica, New York, and offered him a position with Continental which Dunckel accepted. Dunckel began his work at Continental on July 15, 1957, as sales manager and purchasing agent at a better salary than he had been receiving at Lockerbie.

At this time 90 per cent of Continental’s dollar volume of business was concerned with bottle washers, 10 per cent with tanks, and a very small fraction with conveyors and conveyor chains. About one week after Dunckel began working at Continental, discussions were had regarding the feasibility of manufacturing air agitated ice builders in-which Dunckel, Fruhling, and William' Marx, Continental’s chief engineer, participated. The decision to produce this-machine was reached, principally by Fruhling, and the first drawings and¡ preparations for production of the accused machines, the Continental air agitated ice builders, were undertaken in early August of 1957.

Marx and Dunckel collaborated on the design of the Continental machines. Dunckel made most of the drawings. In purchasing parts for the machines, Dunckel made some attempt to keep knowledge of Continental’s new enterprise from Lockerbie.

The first Continental machine was completed and shipped to a customer in March 1958, and ten more machines were' completed and sold by Continental prior to the date of issuance of the Lockerbie patent on October 7, 1958. Since issuance of the patent, ninety-five more Continental machines were produced and sold to date of trial.

Lockerbie claims infringement by all Continental machines manufactured and sold by defendants as well as misappropriation of its trade secret. Defendants deny the validity of the Lockerbie patent and further deny infringement and misappropriation. Defendant Fruhling asserts nonliability as to all claims, and defendant Dunckel claims nonliability as to any infringement. Lockerbie has. raised an issue as to estoppel of the defendants to deny validity of the patent ini suit.

VALIDITY AND ESTOPPEL

The assignor of a patent and his privies are estopped to deny validity of the assigned patent as against the assignee. The state of the art may, however, be resorted to in order to limit the scope of the claims of the assigned patent on the question of infringement. Westinghouse Electric & Manufacturing Co. v. Formica Insulation Co., 266 U.S. 342, 45 S.Ct. 117, 69 L.Ed. 316 *652 '(1924). If it is shown that there is substantial identity of the assigned patent, the accused device, and of prior art in the public domain, the principle of estoppel to deny validity must yield to the public interest in the free enjoyment of public domain art. Scott Paper Co. v.

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Bluebook (online)
207 F. Supp. 648, 134 U.S.P.Q. (BNA) 564, 1962 U.S. Dist. LEXIS 5616, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tom-lockerbie-inc-v-fruhling-wied-1962.