Columbia National Sand Dredging Co. v. Miller
Columbia National Sand Dredging Co. v. Miller
Opinion of the Court
delivered the opinion of the Court:
The contention of the appellants on this.appeal is, that the letters, written on behalf of the defendant company, and which have been set forth in full as containing the gravamen of this case, cannot be properly regarded in any legal sense as casting a cloud upon the complainant’s title to his letters patent No. 665,835; that to constitute a cloud upon title some color of title must be shown in the defendant; and that a bill praying for a discovery which would create a cloud upon title and at the same time seeking a removal of such cloud, is demurrable.
The demurrer of the defendants admits the truth of all the allegations of fact contained in the bill of complaint, with all the reasonable inferences, to be drawn therefrom. Now, it is very plain that the two letters of the defendant company, which have been set forth in the bill, adroitly as they may have been worded in order to avoid the statement of a formal and definite claim, can have no other reasonable meaning than that the defendant company claimed some right of ownership or control over the complainant’s patent No. 665,835, and any and all other patents of the same kind which he should procure. The plain inference from the letters was that no other person could acquire full and valid title thereto, and that the complainant was not at liberty to dispose of his said patent as he sought and desired to do, or to form a corporation to operate the same.
That the effect of this was to cast a cloud upon the complainant’s title, seems to us to be very evident. Equity deals
The assertion of the pretended claim of title may be purposely vague and indefinite, as in the present case; and discovery may be proper in order to ascertain its true character and extent, so as that the complainant may be able to meet it "with testimony. But the simple assertion of ownership, without any specification whatever of the character and extent of the ownership, or of the method by which the pretended ownership may have been acquired, would be sufficient to cast a cloud upon title. If the defendant company in this case, instead of veiling its claim in apparent mystery, had simply stated that, by its arrangement with the complainant, it was entitled to the ownership of his patent No. 665,835, there would be but little question as to its assertion, and but little question that such assertion, if unfounded in fact, cast a cloud upon the complainant’s title. This is what it substantially did, although with intentional obscurity.
The argument on behalf of the appellants implies that, inasmuch as the records of the Patent Office show no assignment of the patent by the complainant, and that his title there is entirely clear, therefore there is no cloud upon it, and nothing to prevent the complainant’s free disposal of it.
It is very evident that neither party to this cause has fully developed all the facts in the case. The bill of complaint, however, shows sufficient to require an answer from the defendants. If the defendant company has a just claim against the complainant in respect of the latter’s patent No. 665,835, there is no good reason why it should not state it; if its claim, on the other hand, is wholly unfounded and merely a pretense, it is no more than simple justice to the complainant that he should have the opportunity so to show. It is not apparent that the determination of the question will injuriously affect the just rights of the defendant company, or of any party to the cause.
We think that the court below was entirely right in its ruling, and that the preliminary injunction was properly issued. The order appealed from will therefore be affirmed, with costs. And it is so ordered.
Reference
- Full Case Name
- COLUMBIA NATIONAL SAND DREDGING CO. v. MILLER
- Status
- Published
- Syllabus
- Equity; Patent Rights; Clouds on Title. 1. To create a cloud on title to letters patent, as well as to land, there must be an assertion of title apparently valid, but in fact without foundation in right or justice; but a vague and adroitly worded assertion of right, accompanied by a threat of litigation in support thereof, is equally effective to create cloud on title as a positive and categorical assertion of right; and where a cloud on title to letters patent has been so created, a prayer for discovery of the foundation of the claim so made is proper in a bill to remove the cloud on complainant’s title to such letters patent. 2. Where the president of a dredging company, operating under a certain patent, in a letter to the patentee, who, several years after assigning such patent to the company, took out another patent and was about to organize a rival company to operate under it, made vague and adroitly worded assertions of right under the second patent, accompanying them with threats of litigation, it was held that such assertions were equally effective to create a cloud on the patentee’s title to his second patent, as a positive assertion of right, and to support a bill in equity by the patentee against the company and. its officers, to remove the cloud so created and for discovery of the defendant’s claims, and to justify the granting of a temporary restraining order upon such a hill. 3. A cloud on a title can he created hy matter not of record, as well as matter of record, as in case of unrecorded transfers, conveyances, liens, assignments of patents, or other evidences of right, of which parties have notice.