Court Opinion

ID: 9760939
Source: CourtListenerOpinion
Date Created: 2023-08-29 01:24:44.77377+00
Date Added: 2024-06-11T07:29:18.907346
License: Public Domain

Frost, J.,
dissenting. In all deference to my associates I am unable to concur in the opinion reached by the majority.
The complainant is a highly intelligent man as evidenced by the work he is doing and has been doing for some years. He was cognizant for many years of the situation which prompted him to bring the present suit. As early as 1941 he consulted an attorney and afterward two others, all competent lawyers, but took no action. Why he did not is best known to himself. After nearly twenty years he filed the present suit in equity.
As a result of complainant’s long delay, many of respondent’s records no longer exist, and it is reasonable to- assume that the memories of those who might be called to testify have become dim. The trial justice among other reasons gave laches as a reason for denying and dismissing the bill.
I think the appeal should be denied and dismissed on the ground of laches.
Condon, C. J., concurs in the dissenting opinion of Mr. Justice Frost.
APPENDIX A
“This Agreement made and entered into- by and between Boston Wire Stitcher Company, a corporation organized under the laws of the State of Maine, doing business in the City of Warwick, in the State of Rhode Island, hereinafter referred to as 'the Company,’ and John F. Cavanagh, of the City of Providence, in said State of Rhode Island, hereinafter referred to as 'Cavanagh,’
“Witnesseth:
“That Whereas on or about June 1, 1931, the Company employed Cavanagh for the specific purpose of inventing a new and original improved type of stapling machine, and has retained Cavanagh in its employ continuously thereafter, paying to him large sums of money in compensation for his services; and
*255“Whereas Cavanagh desires to remain in the employ of the Company upon the terms and conditions hereinafter set forth, and the Company is willing to continue his employment upon such terms and conditions, thereby affording Cavanagh an opportunity to perform engineering services which may result in new and original inventions;
“Now, Therefore, in consideration of the premises and of the mutual covenants and conditions hereinafter contained, the parties hereto, each for himself or itself, and for his or its respective executors, administrators, successors and assigns, covenant and agree as follows:
“First: The Company hereby employs Cavanagh as inventor for the period of one (1) year from February 1, 1937, and will pay to him as such inventor a minimum salary of One Hundred Twenty-five Dollars ($125) for each week during the term of his employment as such inventor, and also the bonus, if any, specified in paragraph Third hereof. Said employment is subject to termination in the manner and for the causes set forth in paragraph Fourth hereof, and, if not theretofore terminated, shall continue after the expiration of said one (1) year period until it shall have been actually terminated in the manner provided in said paragraph Fourth.
“Second: Cavanagh will devote the whole of his time, attention and energy to and will use his best efforts and interest in the performance of his duties as an inventor. He ’will not engage directly or indirectly in any other business, except as may hereafter be mutually agreed. The agreement with the Company signed by Cavanagh under date of June 7, 1932, relative to' property rights in inventions and disclosure of confidential information is hereby incorporated in this agreement and ratified and confirmed as applying to the employment herein set forth, a copy of said agreement being attached hereto and marked ‘Exhibit A.’
“Third: In addition to the minimum salary of One Hundred Twenty-five Dollars ($125) per week specified in paragraph First hereof, Cavanagh shall receive during the period of his employment and thereafter as herein specified, as additional compensation, a bonus equal to one per cent (1%) of the amount paid to the Company by its customers as the purchase price from the sale to such customers *256of devices invented by Cavanagh for which letters patent of the United States and elsewhere have been or may hereafter be issued to the Company upon the application of Cavanagh duly assigned to the Company, such selling price to be fixed by the Company and its customers as they may agree without interference from Cavanagh. In the case of devices invented by Cavanagh in collaboration with one or more other parties in respect to which application for letters patent shall have been or may be made in the name of Cavanagh and such other party or parties and/or in the case of devices which are not solely the invention of Cavanagh and incorporate other inventions not made by Cavanagh, said bonus shall be computed on the basis of such portion of one per cent (1%) of said purchase price as the parties hereto may in each case agree upon from time to time. The Company may deduct an amount equal to one half of all costs, attorneys’ fees, expenses, damages and/or liability incurred or suffered by it in connection with or in support or defense of any of the inventions or improvements perfected by Cavanagh, patented or otherwise, from any bonus otherwise payable to him hereunder on account of sales of any device incorporating the invention in connection with which such expense was incurred, but no such deduction shall be made from any bonus payable on account of the sale of devices which do not incorporate such invention. An accounting shall be had as of August 1, 1937, and at the end of each six (6) months’ period thereafter or upon the sooner termination of this employment, and the amount of the bonus, if any, computed as aforesaid, shall be paid to Cavanagh forthwith; provided, however, that in the case of devices incorporating improvements invented by Cavanagh for which applications for letters patent may be pending but no letters patent shall have been granted or refused, or incorporating improvements for which letters patent shall have been granted hereafter but in respect to which there is, in the opinion of the Company, danger of litigation and possibility of liability on its part, the Company may in its sole discretion retain such part of any such bonus as it shall see fit, paying to Cavanagh, when, and only when, it shall deem the rights of the parties to have been finally determined, that portion, if any, of the amount so retained remaining after the payment of one half of the damages *257and expenses attendant to such proceedings as aforesaid. Upon the termination of this employment, all right of Cavanagh to receive the minimum salary and 'bonus aforesaid shall cease, except that, if terminated prior to February 1, 1940, he shall continue to be entitled to receive the bonus on account of such sales during the period from the date of such termination to February 1, 1940, but not thereafter. The certified statement of Messrs. Ernst & Ernst, or other certified public accountants from time to time employed by the Company, as to the amount of such bonus due for any such accounting period, determined by them in good faith in accordance with the provisions hereof, and subject to the aforesaid discretionary right of the Company to retain portions thereof, shall be final and binding upon the parties hereto.
“Fourth: The employment created by this agreement shall cease and terminate upon and after the expiration of a period of fourteen (14) days after written notice shall have been served by the Company upon Cavanagh or by Cavanagh upon the Company, provided that no such notice shall be served prior to January 14, 1938. Nothing herein contained shall limit the right which is hereby expressly reserved in, to or by the Company and conceded by Cavanagh to terminate this agreement forthwith at any time for any dishonesty, incompetence, negligence, inattention, irresponsibility, or incapacity ón the part of Cavanagh. In the event of the termination of this agreement as aforesaid, or by reason of the death of said Cavanagh, the amount due to Cavanagh or to his estate, as the case may be, for salary and/or bonus shall be fixed and determined as of the date of such termination.
“Fifth: Upon the termination of this agreement or any extension thereof or of any other employment of Cavanagh by the Company, Cavanagh will furnish the Company with all information and data in his possession which may be useful and/or beneficial in the conduct of its business and will deliver to the Company all books and records in his possession relating to its affairs.
“This instrument, executed in duplicate, together with the aforesaid agreement dated June 7, 1932, contains the •entire agreement of the parties hereto relating to the employment of Cavanagh by the Company and shall becomé *258effective upon the execution and delivery hereof and as of February 1, 1937.
“In Witness Whereof, the parties hereto have hereunto and to a duplicate original hereof set their hands and seals, the said Boston Wire Stitcher Company by Joseph D. A. Whalen, its President and Treasurer, thereunto' duly authorized, this 7th day of April, A. D. 1937, but as of February 1, 1937.
“In presence of:
Boston Wire Stitcher Co.
[signed] Margaret E. Dubois per [signed]
(Witness for both) Joseph D. A. Whalen,
President
[signed]
John F. Cavanagh”
APPENDIX B
“Exhibit A
“Boston Wire Stitcher Company East Greenwich, R. I.
“Gentlemen:
“In consideration of my employment by your company I hereby agree that all inventions, improvements and discoveries made by me relating to the products from time to time manufactured and/or sold by your company, its subsidiaries or associates, or to the business, processes, machinery and methods of production and manufacture thereof, made by me while in your employ under the present or any subsequent arrangement or during the period of two years after leaving your employ, shall become your property, and that I will promptly disclose the same and upon request without further consideration, will apply for letters patent at your expense and assign all my interests therein to- Boston Wire Stitcher Company, its successors and assigns. I also agree that I will not divulge to' others any confidential or secret information concerning your company, its customers and/or methods, nor will I, for two years after leaving your employ, engage in, or render service to' others engaged in the manufacture and/or sale of any products which compete with those manufactured and/or sold by your company, its subsidiaries or associates.
“June 7, 1932. (Signed) John F. Cavanagh”
*259Higgins, Cavanagh & Williamson, Joseph V. Cavanagh, Harold E. Adams, Jr., for complainant.
Tillinghast, Collins & Tanner, Edwin H. Hastings, for respondent.
JULY 26, 1960.
Motion to Reargue.
Per Curiam.
After our opinion herein was filed, the respondent by permission of the court presented a motion for leave to reargue, setting forth therein certain reasons on which it bases its contention that justice requires a re-argument of the cause.
Upon consideration, we are of the opinion that only the following points are of sufficient importance to warrant a reargument: Point 3 with reference to the matter of the accounting, point 4 with reference to the applicability of the principle of accord and satisfaction, and point 5 with reference to the applicability of the principle of account stated.
As thus limited, the motion for leave to reargue is granted.