Wende v. Horine

225 F. 501, 140 C.C.A. 543, 1915 U.S. App. LEXIS 2122
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 5, 1915
DocketNo. 2067
StatusPublished
Cited by24 cases

This text of 225 F. 501 (Wende v. Horine) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wende v. Horine, 225 F. 501, 140 C.C.A. 543, 1915 U.S. App. LEXIS 2122 (7th Cir. 1915).

Opinion

MACK, Circuit Judge.

Applications for letters patent for improvements in a manifolding apparatus were filed by appellee on July 3, 1897, and by appellant nearly a year and a half later, on December 21, 1898. The specific commercial demand that called forth the efforts of the parties was that of the Union Stock Yards at Chicago for [502]*502simultaneous fac simile scale records and certificates by some carbon copy process.

Interference proceedings were instituted between the parties. In support of his claim of priority, 'Wende relied upon two sets of exhibits. One set, however, was rejected, on the ground that, while it may have had features in common with Horine’s exhibit, it did not show one element of the specific claims in issue. Wende’s contention for a construction of the claims and the issue broad enough to make the second set of exhibits admissible was rejected. Priority was awarded to Horine on a construction found to have been reduced to practice not later than November 25, 1896. No appeal was taken from the decision of the Commissioner.

Thereupon Horine filed additional and broader claims, omitting therein, the one element, the construction of which had caused the rejection of Wende’s second set of exhibits, and was awarded a patent covering both the claims involved in the interference and the broader claims. Wende then amended his application, adopted the broader claims in Horine’s patent, and succeeded in having a second interference proceeding instituted. Horine’s motion to dissolve this proceeding on the ground of estoppel was overruled both by the primary examiner and the Commissioner; the latter, too, reversed the action of the former, who had granted the motion only because in. his judgment no prima facie showing of priority had been made by Wende.

In this second interference Wende was successful in the Patent Office in establishing the priority of the second set of exhibits, which had not been received in evidence in the former proceeding, over Horine’s original exhibit, on which the latter again relied; but, on appeal, the Court of Appeals for the District of Columbia reversed the Commissioner of Patents, on the ground that the broader claims of the second interference differed from the specific claims of the first interference in scope alone, and not generically, and that therefore the Commissioner’s final unappealed decision in the first interference was res ad judicata of the issues involved in the second, and that, notwithstanding the rejection in the first interference proceeding of the second set of exhibits, and irrespective of whether such action was proper or erroneous, the priority, as against Horine, of the conception and reduction to practice therein of the broader claims could not be inquired into.

Wende thereupon filed his bill in equity under section 4915 of the Revised Statutes (Comp. St. 1913_, § 9460) to secure a judicial declaration of priority of the claims involved in the second interference proceeding and an adjudication that he is entitled to receive a patent for his invention specified therein. This bill was dismissed in the District Court on the ground of identity of the issues in the two proceedings and estoppel to sue under section 4915, because of a failure to appeal from the decision of the Commissioner in the first interference proceeding.

In addition to res adjudicata and estoppel, several other defenses were made in the District Court, and are urged, on this appeal, in sup[503]*503port of the decree. The conclusion which we have reached, that the invention was on sale more than two years before Wende’s application was filed, and that he cannot, therefore, under any circumstances, obtain letters patent thereon, renders it unnecessary for us to express any opinion either on the defenses of res adjudicata and estoppel or on the merits of the respective contentions to priority.

While there is a strong controversy as to the ultimate conclusion, there is practically none as to the evidentiary facts from which it must be determined whether or not Horine’s original exhibit, completed not later than November 25, 1896, and concededly embodying the invention covered by the claims now in question, was on sale prior to December 21, 1896. This apparatus, completed and delivered to Horine on November 25, 1896, was not in any sense a mere model or an experimental construction, hut, as testified to, it was a “full-sized, complete, operative apparatus.” And the demonstrations which, he subsequently made were not, as in Elizabeth v. Paving Co., 97 U. S. 126, 24 L. Ed. 1000, for the purpose of experimenting, of determining whether or not it would operate practically and commercially, but solely for the purpose of showing its advantages and selling it to a prospective purchaser. No changes were in fact made in it, and the identical apparatus was subsequently installed and used.

Wende and Horine were making every endeavor to secure the adoption of their respective apparatus by the Union Stock Yards Company. On November 30, 1896, Horine took his perfected apparatus to the office of J. C. Denison, secretary of the Stock Yards Company, with whom both parties had been conferring for months, and to whom each of them had showed his work during the experimental stages, and demonstrated its operation before him and others. On December 12, 1896, Horine appeared at a meeting of the Eive Stock Exchange committee with General Manager Sherman and other officials of the Stock Yards Company, to make further demon-stratious. The committee then and there recommended its adoption, and Sherman instructed Denison to ascertain the cost of the necessary materials, as well as the compensation to he paid Horine. Denison on the same day requested Horine to submit a written proposition, and on December 16th wrote to him:

“It 3s now Wednesday afternoon, and the last time I saw you you positively agreed 1» give me figures as to what you would charge us for your new scale ticket device on Monday.”

After telling him of Wende’s device, and the effort to secure its adoplion, he continues:

“My object is * * ~ to impress upon you the necessity of being hero to-morrow and have the matter amicably settled.”

The letter was signed “J. C. Denison, Secretary,” and was inclosed in an envelope of “J. C. Denison, Secretary and Treasurer of the Union Stock Yards & Transit Company of Chicago.” On December 17, 1896, Horine delivered to Denison a letter addressed io the Stock Yards Company, from which we quote the following passages:

“My proposition hereinafter made is intended to enable your company to use at all your live stock scales my new method of producing simultaneous [504]*504scalé records and certificates.

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Bluebook (online)
225 F. 501, 140 C.C.A. 543, 1915 U.S. App. LEXIS 2122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wende-v-horine-ca7-1915.