Washburn & Moen Manufacturing Co. v. Chicago Galvanized Wire Fence Co.

6 N.E. 191, 119 Ill. 30
CourtIllinois Supreme Court
DecidedMarch 27, 1886
StatusPublished
Cited by25 cases

This text of 6 N.E. 191 (Washburn & Moen Manufacturing Co. v. Chicago Galvanized Wire Fence Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Washburn & Moen Manufacturing Co. v. Chicago Galvanized Wire Fence Co., 6 N.E. 191, 119 Ill. 30 (Ill. 1886).

Opinion

Mr. Justice Scholfield

delivered the opinion of the Court:

The first, and, in our opinion, the controlling, question, arising upon this record is, whether, when the case was here at a former term, (109 111. 71,) it was remanded for a rehearing, or only to modify the decree of the Superior Court in conformity with specific directions then given.

In cases where a modification of the decree below is deemed necessary, it is discretionary- whether this court shall, by an order to be entered on its own records, make the modification, or -whether it shall remand the cause to the lower court, with specific directions to that court to make the modification. (Rev. Stat. 1874, see. 81, chap. 110.) In either case it is proper that the order of this court be, first, that the decree below be reversed. (Hunter v. Hatch, 45 Ill. 178.) But whether the effect of such order of reversal shall be to open up the case for rehearing, will depend entirely upon the modification of the decree made or directed to be made, for, the only purpose of the order of reversal being that the modification shall be made, the substantial rights of the parties to the record, so far as concerns any question now before us, are precisely as if, from the moment of the entry of the judgment in this court, the decree actually read as it would read after making the record entries in the different courts, essential to the modification. And since the direction that one part of a decree be modified, is, by necessary inference, an approval of that part omitted from that direction, the substantial rights of the parties to the decree are not perceptibly different from what they would be were it expressly ordered, in the formal entry upon the record, that such omitted part of the decree is affirmed. No statute requires that the specific modification directed shall be embodied in the formal order of court entered of record by the clerk of this court, 'and it is conformably with our practice, and sufficient, if the modification be specifically directed in the written opinion of the court filed in the case. And so it is held that it is the duty of the lower court to examine the opinion, and conform its action to it. Wadhams v. Gay, 83 Ill. 253; Boggs v. Willard et al. 70 id. 315; Hough v. Harvey et al. 84 id. 308.

The specific directions here given are all in the written opinion of the court, and the meaning intended to be conveyed by the language employed for that purpose will be better comprehended by restating the questions under consideration to which that language was applied.

The tenth condition in the license issued" by appellant to appellee has this clause: “And the royalty to he paid under this license shall not be greater than that charged to any other party licensed after the first day of January, A. D. 1881, under said several letters patent” named in the license; and that in case a license should be given to any party at a less royalty, “then and thereafter the royalty to be paid under this license shall be the same as such reduced royalty.” The bill was filed for the purpose of obtaining the specific performance of this condition, alleging a certain settlement made subsequent to the first day of January, A. D. 1881, by appellant, with Jacob Haish, under the terms of which Haish was licensed to manufacture barbed fence wire to the extent of 4000 tons annually, free of royalty, under appellant’s patents, and the bill prayed allowance to appellee of the benefit of all reduction of royalty made to Haish. The allegation was put in issue by answer. Evidence was heard, and the court decreed as prayed in the bill.

The opinion, after giving a history of the settlement with Haish, proceeds thus: “The main controversy in this case is upon a question of fact as to what was the real character of this transaction” (that between appellant and Haish,) “of the 26th of July, 1881. The contention of appellant is, that the real arrangement with Jacob Haish was a mere settlement of a troublesome litigation upon a basis of an allowance to Haish of the right to manufacture 4000 tons of barbed fence wire per annum free of royalty, with an abatement of twenty-five cents per hundred pounds upon the royalty exacted from other licensees, upon his annual manufacture above 4000 tons, up to 8000, the arrangement being concealed under a pretended purchase of Haish’s patents, payment for which was to be made, practically, in a rebate of the royalties nominally exacted from Haish under the license issued to him. ” A preliminary question with regard to the admissibility of parol 'evidence exhibiting the various negotiations between' the parties, leading up to the settlement, is then discussed, and such evidence held admissible, and then this question is discussed, and the conclusion thereon is stated in these words: “The court below found that the purchase of Haish’s patents, and the Stevens machine patent, was a secondary matter, and was used to give the appearance of a consideration to what was in reality a license, free of royalty, for the manufacture of 4000 tons, yearly, of barbed wire, and of 4000 more tons at a less rate, by twenty-five cents per hundred pounds, than to the other licensees, and so a reduction to that extent, of which appellee had a right to avail itself under its license. Without further remark upon the evidence, we state as our conclusion, upon its examination, that we do not find reason sufficient for disturbing the decree on the ground of the finding of the court not being warranted by the testimony.” Another point is then considered and decided which is not pertinent now, after which the opinion comes to an objection urged by appellant’s counsel, that the decree reduces appellee’s royalty to a less amount than that of Haish, and after stating the ground of this objection, it proceeds: “Hence it is said, that on the theory of the court below, and upon the principle of the equality of royalties, appellee should be exempt from royalty as to two-fifths of its tonnage, and subject to a payment of fifty cents on the hundred pounds royalty on the second two-fifths of its tonnage, and a royalty of- seventy-five cents per hundred pounds on the last one-fifth, but that instead of doing so, the decree gives to appellee the whole amount of its tonnage free from any royalty. There is force in this view, and we think that if Haish manufactured up to the full limit of his tonnage, it would have to be acceded to. He certainly-then would have some royalty to pay, and the reduction of appellee’s royalty to an equality with that of Haish would not exempt appellee from payment of any royalty at all. There can not be the claim that each licensee was entitled to an equal amount of tonnage. There was to be a limitation as to tonnage, and the several amounts to be allowed to each licensee were to be determined by the licenser; but Haish was not bound to manufacture more than 4000 tons yearly, and to the extent of 4000 tons yearly he had a free license,—whether he would manufacture in excess of that was optional with him.

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Bluebook (online)
6 N.E. 191, 119 Ill. 30, Counsel Stack Legal Research, https://law.counselstack.com/opinion/washburn-moen-manufacturing-co-v-chicago-galvanized-wire-fence-co-ill-1886.