Triumph Electric Co. v. Thullen
Triumph Electric Co. v. Thullen
Opinion of the Court
The purpose of this bill is to enforce specific performance of a contract. The contract is one between an employer and employé. The decision of the case involves a finding of the rights acquired by the employer in an invention made by the employé.
The defendant is an engineer of experience, possessing the ability called for by the position he filled. He entered the plaintiff’s employ November 22, 1909, under a contract of that date, which is the basis of the plaintiff’s claim of right. During the time of his employment he conceived the idea of an'improved apparatus for automatically controlling electric motors. Tetters patent did not issue until August 19, 1913. The application and grant of letters patent having come to the notice of the plaintiff, it demanded to have the patent assigned, and, upon defendant’s refusal, has filed this bill. The pertinent provisions of the contract upon which this demand is based are that the defendant would devote himself to the interests of the plaintiff, and “while in its employ, in the event of any design being capable of being made the subject-matter of a patent application, such application and patent shall be assigned to the company.”
The defendant denies the plaintiff’s claim of ownership of this invention. This denial is based upon a further provision of the contract that the agreement to assign did not apply to “any patentable design” which the defendant might “discover, not applicable to the line manufactured by” the plaintiff, and the asserted fact that this invention is outside of the employer’s line of manufacture. There is a further denial of plaintiff’s right to the equitable remedy invoked by this bill, on the ground that this is a deprivation of defendant’s right, confirmed by the act of Congress, to have the facts, from which the legal rights of the parties flow, tried at law, and that neither the relations of the parties nor the certainty of the contractual obligations of the defendant are such as to confer upon plaintiff the right to the extraordinary relief sought.
It must, of course, be admitted that formal technical grounds of equitable jurisdiction here exist. The title asserted is an equitable title, and the relief prayed is through a purely equitable remedy. The basis of the whole case is none the less, as already stated, a contract and its averred breach. It is not enough that a court of equity has jurisdiction and a chancellor the power to interfere. No complainant can successfully assert a right to such interference. A litigant has a right to his action at law. He has none to equitable relief through chancery forms. The most he has is a justified expectation that a chancellor will grant such relief, if grounds for it exist. The legal right, as has been stated, must be shown. In some cases, if his right is doubtful, he must first establish it at law. Even then more is required of a complainant than the mere possession of a legal right. If that is all he has, he is left to its assertion. Before a decree in equity will be awarded, the defendant must be convicted of an offense against equity, or the plaintiff be without other adequate remedy. These doctrines have the sanction of abundant authority, recognition of which is given in Dalzell v. Dueber, 149 U. S. 315, 13 Sup. Ct 886, 37 L. Ed. 749, Root v. Railway Co., 105 U. S. 189, 26 L. Ed. 975, and Colson v. Thompson, 15 U. S. (2 Wheat.) 336, 4 L. Ed. 253.
The business of the plaintiff is to manufacture generators, or
This prelude, which has been already unduly lengthened, brings us to the query of whether the invention of such auxiliary devices is within the terms of this contract. In the effort to find the meaning of the contract, we have the fact that the language employed is that of "the plaintiff. The pivotal point is the thought meant to have been expressed by the concluding sentence. After the event, criticism of what was done before is never gracious and seldom just. We do not' mean it .as a criticism, but merely note the circumstance that, in view of the controversy which has arisen, the words used in the sentence quoted were not happily chosen. Was it intended that patents relating to control apparatus should be the property of the plaintiff, or was its ownership to be limited to generators and motors? In the light of the distinction between control apparatus, which it bought, and generators and motors, which it manufactured, the use of the latter word at least introduces an ambiguity.
The mére reading of the contract would call for a broader view of it. Indeed, the distinction adverted to, when first suggested to the mind, seems almost finical. We have been compelled, however, to make the finding from the testimony of the chief witness for the plaintiff. His testimony was not only frank and candid, but clear-cut as well. He seems to have been impelled to state the distinction by his transparent truthfulness. He should be given further credit for appreciating the at least possible value of the fact, because he stated also that some years before the defendant was employed the company had manufactured control apparatus, and after the relations be
We do not feel called upon to interpret this contract further than to state the conclusion readied that we cannot find it was the intendment of the defendant that patents relating to control devices, as distinguished from generators and motors themselves, should he assigned to plaintiff, and, in the absence of such a finding, we must refuse the specific relief prayed for, which is to enter a mandatory order that the defendant assign this patent to plaintiff.
We do fe.el called upon to state, however, that the evidence introduced by each of the parties tending to impeach the good faith of the oilier has failed in its purpose. There is no occasion to discuss it in detail, nor to refer to the interpretation which each side to the controversy is wrongly asserted by the other to have placed upon this contract inconsistent with the one now advanced. The view of the case above expressed would call for a decree dismissing the bill under the former equity rules. The case is, however, within the spirit of rules 22 and 23 of the present rules. Further than this, there is a prayer here for general relief. No other decree than specific performance has, however, either been asked for or discussed, and we do not feel free to make it.
The disposition now made of the case is to grant leave to plaintiff to ask to have the case transferred to the law side of the court, or for relief under its general relief prayer. If no such action is taken within 30 days, defendant may submit a decree in accordance with this opinion. It should, perhaps, be added that the decree of the court awarding a preliminary injunction, of which we have been reminded, was confined to preserving the rights of both parties, and a construction of the contract was expressly withheld until final decree.
Reference
- Full Case Name
- TRIUMPH ELECTRIC CO. v. THULLEN
- Status
- Published
- Syllabus
- 1. Specific Performance ®=>1, 4—Contracts Enforceable—Grounds. A party seeking specific performance of a contract, and asserting a breach by the adverse party to the contract, must, to obtain relief, show that his right is so clear that the denial of it by the adverse party affronts against good conscience, and calls for a decree prayed for, and that the xaut.y lias no other adequate remedy, though formal technical grounds of equitable jurisdiction exist. TEd. Note.—Itor other cases, see Specific Performance, Cent. Dig. §§ 1, 4; Dec. Dig. ®==>1, 4.] 2. Master and Servant A contract of employment, terminable at the will of the employer, bound the employé, while in the employ, “in the event of any design by him capable of being made the subject-matter of a patent,” to assign the application and patent to the employer; but the agreement to assign should not apply to any patentable design which the employer might discover, not applicable to the line manufactured by it. The employé was discharged, but before bis discharge he had perfected an invention and liad applied for a patent. The shop work involved was done by the employer at the employe’s expense. The expense of securing the patent was paid by the employe, and the patent was issued after the termination of the employment. The purpose of the invention was to automatically control elecT trie motors. The employer was a manufacturer of generators, or dynamos, and motors. It bought from others the control apparatus, and what it manufactured and what it bought were sold together as units. Some years before the employment the employer had manufactured control apparatus, and after the termination of the employment the employer made switchboards for use with generators. Held, that the contract, interprol ed in the light of conditions existing when made, did hot bind the employé to assign to the employer the patent. [Ed. Note.—Eor other cases, see Master mid Servant, Cent. Dig. § 71; Dee. Dig. Cs»For oilier cases see same topic & KEY-NUMBER in all Key-Numbered Digestí? & Indexes