Tubeco, Inc. v. Crippen Pipe Fabrication Corporation

402 F. Supp. 838, 187 U.S.P.Q. (BNA) 746, 1975 U.S. Dist. LEXIS 15663
CourtDistrict Court, E.D. New York
DecidedOctober 21, 1975
Docket73 C 203
StatusPublished
Cited by17 cases

This text of 402 F. Supp. 838 (Tubeco, Inc. v. Crippen Pipe Fabrication Corporation) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tubeco, Inc. v. Crippen Pipe Fabrication Corporation, 402 F. Supp. 838, 187 U.S.P.Q. (BNA) 746, 1975 U.S. Dist. LEXIS 15663 (E.D.N.Y. 1975).

Opinion

MEMORANDUM AND ORDER

NEAHER, District Judge.

Plaintiff (“Tubeco”) brought this action pursuant to 28 U.S.C. §§ 2201, 2202, seeking a declaratory judgment which would determine that defendants’ Patent No. 3,456,468 (1) is invalid, unenforceable, and not infringed by Tubeco or its customers, (2) has been used in unfair competition with Tubeco, and (3) has been used as a false description or representation, and a false designation of origin of goods and services in violation of the Lanham Act, 15 U.S.C. § 1125(a). 1 There being no diversity of citizenship between the parties, subject matter jurisdiction is allegedly based on 28 U.S.C. §§ 1331(a), 1338(a) and (b), and 15 U.S.C. § 1125(a).

The case is now before the court on defendants’ (hereinafter “Crippen”) motions to dismiss the complaint pursuant to Rule 12(b)(1) and (6), F.R.Civ.P. *841 The grounds urged are that subject matter jurisdiction is lacking because there is no justiciable controversy between the parties regarding the patent in question ; and, alternatively, no claim is stated upon which relief can be granted. Extensive briefs, affidavits, exhibits and depositions have been submitted in support of and in opposition to the motions. The court has carefully reviewed these and concludes for the reasons which follow that the motion to dismiss the complaint should be granted.

FACTS

These facts appear not to be in material dispute. Tubeco is a New York corporation having its principal place of business in Brooklyn. For at least 24 years it has been engaged in the business of pipe fabrication, specializing among other things in the precision custom bending of steel pipe larger than six inches in diameter for use in industrial installations such as chemical and power plants, refineries and the like. Hot pipe bending, as it is called, is essentially a process of heating pipe and bending it into desired shapes around the curvature face of an arced forming die. Tubeeo’s customer clientele includes well-known large corporations and it regards itself as a major national pipe fabricator and distributor of materials for fabrication as well as “one of the primary sources for the world’s requirements of large size pipe bends.” 2 Although describing its pipe bending equipment as “unique”, see n. 2 supra, Tubeco has never obtained a patent on its apparatus or methods.

Defendant Henry O. Crippen began his training and experience in the art of hot pipe bending while employed by the Sun Shipbuilding and Drydock Corporation during the period 1942-1946. In 1954 he was employed by Tubeco’s predecessor, where he was in charge of all hot pipe bending operations and claims to have “[tjested out during the course of his work most of the principles and concepts later incorporated into his invention”, 3 described in the patent hereinafter mentioned. Crippen remained in Tubeco’s employ until January 1966, during which period he admittedly “had knowledge of all the equipment used, and all of the processes practiced, by Tubeco, Inc. in its pipe bending and fabrication operations.” 4

After leaving Tubeco, Crippen became self-employed. In March 1967 he filed an application in the United States Patent Office for a patent on a hot pipe bending apparatus and process he claimed was his own invention. On July 22, 1969 United States Patent No. 3,456,468 was issued to Crippen on the apparatus and method described. 5

While his patent application was still pending, Crippen approached Tubeco about using his alleged innovation. By letter of March 6, 1968, he informed Tubeco of his invention and offered it to Tubeco for its use, admittedly with the expectation of being paid if the offer were accepted. Tubeco responded by letter dated March 20, 1968, declining to permit any further disclosure or discussion of the matter unless an agreement was entered into assuring that Tubeco would be “the sole judges of the novelty and worth of the idea, and that any payment to you would be entirely voluntary on our part.” 6

On or about August 13, 1970, after the patent had issued, Crippen succeeded in arranging a meeting with Tubeco officers and employees at which he explained the patented process in detail for *842 the first time and exhibited drawings which form part of the patent involved. Tubeco’s president, Allan B. Wesler, after viewing these, concluded from Crippen’s presentation that he was attempting to “sell us our own process” and told him so. 7 Wesler then left the meeting, which ended shortly thereafter without result for Crippen.

There apparently were no further communications between Crippen and Tubeco, except for the two Tubeco letters mentioned below. At some point, Tubeco obtained a copy of the patent, examined it, and concluded it covered processes Tubeco had either used for many years before March 28, 1967, the date of application, or had earlier tried and discarded. On June 3, 1971, Tubeco wrote Crippen stating it considered the patent invalid and that Tubeco “will continue to use all of the procedures which it presently is using and has used in the past.” 8 The letter by its terms called for no response from Crippen and none was forthcoming.

Tubeco’s next letter to Crippen — written some eighteen months later — demanded a response. That letter, annexed as Exhibit A to the complaint, is dated January 17, 1973, shortly prior to the institution of this action. After informing Crippen that Tubeco considered his patent to have been fraudulently obtained, his claim of inventorship false, and his use of the patent “unfair competition”, the letter demanded “that you disclaim your patent forthwith.” When Crippen did not respond, this action was begun.

Tubeco’s earlier notice and eventual ultimatum to Crippen were obviously a response to news of his further efforts to exploit the patent after the unfruitful meeting at Tubeco. A month or so after that meeting and on September 18, 1970, Crippen Pipe Fabrication Corporation, predecessor of the present co-defendant, was organized in New York. 9 Initially Crippen had explored the possibility of licensing his patented method to other companies engaged in industrial pipe fabrication. Unsuccessful in that effort, he decided to form his own enterprise and enter the heavy industrial pipe bending and fabrication industry in which Tubeco was a principal competitor. 10

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Bluebook (online)
402 F. Supp. 838, 187 U.S.P.Q. (BNA) 746, 1975 U.S. Dist. LEXIS 15663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tubeco-inc-v-crippen-pipe-fabrication-corporation-nyed-1975.