Kirschner v. West Company, Civ. A. No. 27579.

CourtUnited States District Courts. 3th Circuit. United States District Court (Eastern District of Pennsylvania)
Writing for the CourtLUONGO
Citation247 F. Supp. 550
Decision Date15 January 1965
Docket NumberCiv. A. No. 27579.
PartiesLeon KIRSCHNER and Henry Naftulin, individually and as co-partners, trading as K-N Enterprises v. WEST COMPANY.

247 F. Supp. 550

Leon KIRSCHNER and Henry Naftulin, individually and as co-partners, trading as K-N Enterprises
v.
WEST COMPANY.

Civ. A. No. 27579.

United States District Court E. D. Pennsylvania.

January 15, 1965.


247 F. Supp. 551

Harry R. Kozart and Weissman & Kozart, Philadelphia, Pa., for plaintiff.

Theodore Voorhees and Dechert, Price & Rhoads, Philadelphia, Pa., for defendant.

LUONGO, District Judge.

This matter is before me on two motions: defendant's to confirm, and plaintiffs' to vacate, the award of an arbitrator pursuant to the provisions of United States Arbitration Act, 9 U.S.C.A. §§ 9 and 10, respectively. The award was rendered in connection with a dispute arising out of a contract dated July 15, 1952. The background out of which these motions emerge is:

The United States Army uses and has used rubber stoppers as closures for bottles containing pharmaceuticals. Seeking to avoid contamination of the contents of those bottles by the stoppers, the Army, in 1941, drew up specifications for lacquer coatings to be applied to the stoppers. Defendant, a manufacturer of closures for the pharmaceutical industry, had tried to meet the specifications, but had not been successful.

In 1951, the plaintiffs succeeded in developing a lacquer which, when tested, met the Army's requirements. In July 1952, plaintiffs granted an exclusive license to the defendant to manufacture and sell the lacquer made from their formula. Under the agreement, which was for a term of seven years, plaintiffs disclosed their secret formula to defendant, and defendant, although not obligated to use the formula, agreed to pay royalties to plaintiffs in the event it used the lacquer. Defendant further agreed to disclose and to turn over to plaintiffs, as plaintiffs' property, any improvements in plaintiffs' formula developed by defendant. The agreement provided for arbitration of any disputes arising under it.

After the contract was entered into, plaintiffs and defendant, by joint efforts, improved the formula to the point where production was commercially feasible. Defendant produced and used the

247 F. Supp. 552
lacquer and paid the royalties called for in the agreement

In 1954, defendant, through one of its own staff, discovered another lacquer, simpler to produce, but which also met the Army specifications. Thereafter use of plaintiffs' formula gradually diminished until finally it was discontinued and payment of royalties ended.

In 1960, plaintiffs filed a complaint in this court charging that defendant had breached a confidential relationship and had converted their secret formula without properly accounting for the royalties due. The defendant moved for a stay of proceedings pending the arbitration contracted for in the agreement between the parties. The stay was granted by the late Circuit Judge Goodrich, sitting specially as a district court judge. Kirschner v. West Co., 185 F.Supp. 317 (E.D.Pa.1960). Since the order granting the stay was interlocutory, an appeal therefrom was dismissed. Kirschner v. West Co., 300 F.2d 133 (3d Cir. 1962). The parties thereupon selected the Honorable Horace Stern, former Chief Justice of the Pennsylvania Supreme Court, as arbitrator, and proceeded to arbitrate the dispute. Justice Stern made an award in favor of the defendant, West Company, following which the motions now before me were filed.

At the outset plaintiffs assert that Judge Goodrich did not have jurisdiction to order a stay of proceedings pending arbitration.

Defendant's motion for a stay was based upon § 3 of the Arbitration Act. Judge Goodrich noted that that section's "* * * compulsory effect is applicable only to those contracts covered by...

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16 practice notes
  • Shearson Hayden Stone, Inc. v. Liang, No. 79 C 2241.
    • United States
    • United States District Courts. 7th Circuit. United States District Court (Northern District of Illinois)
    • June 30, 1980
    ...577, 581 (2d Cir. 1967); Oceania Shipping Corp. v. Thos. P. Gonzalez Corp., 442 F.Supp. 997, 999 (S.D.N. Y.1977); Kirschner v. West Co., 247 F.Supp. 550, 552 (E.D.Pa.), aff'd per curiam, 353 F.2d 537 (3d Cir. 1965), cert. denied, 383 U.S. 945, 86 S.Ct. 1202, 16 L.Ed.2d 208 (1966); see also ......
  • BIOTRONIK, ETC. v. Medford Medical Instrument Co., Civ. A. No. 75-1042.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • May 12, 1976
    ...when the protesting party had an opportunity to rebut his opponent's claims at the arbitration hearing. E. g., Kirschner v. West Co., 247 F.Supp. 550 415 F. Supp. 138 (E.D.Pa.), aff'd per curiam, 353 F.2d 537 (3rd Cir. 1965), cert. denied, 383 U.S. 945, 86 S.Ct. 1202, 16 L.Ed.2d 208 (1966);......
  • Low v. Minichino, No. 28980.
    • United States
    • Court of Appeals of Hawai'i
    • September 29, 2011
    ...when the protesting party had an opportunity to rebut his opponent's claims at the arbitration hearing."); Kirschner v. West Co., 247 F.Supp. 550, 553 (E.D.Pa.1965) (court denied plaintiffs' motion to vacate arbitration award grounded on claim that defendant's witnesses had committed p......
  • Amerada Hess Corp. v. LOCAL 22026 FED. LAB. U., AFL-CIO, Civ. A. No. 74-842.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • October 31, 1974
    ...98 L.Ed. 168 (1953); Bernhardt v. Polygraphic Co. of America, 350 U.S. 198, 76 S.Ct. 273, 100 L.Ed. 199 (1956); Kirschner v. West Co., 247 F.Supp. 550 (E.D.Pa.1965), aff'd 353 F. 2d 537 (3d Cir. 1965), cert. den. 383 U. S. 945, 86 S.Ct. 1202, 16 L.Ed.2d 208 (1966); Federal Commerce & Na......
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16 cases
  • Shearson Hayden Stone, Inc. v. Liang, No. 79 C 2241.
    • United States
    • United States District Courts. 7th Circuit. United States District Court (Northern District of Illinois)
    • June 30, 1980
    ...577, 581 (2d Cir. 1967); Oceania Shipping Corp. v. Thos. P. Gonzalez Corp., 442 F.Supp. 997, 999 (S.D.N. Y.1977); Kirschner v. West Co., 247 F.Supp. 550, 552 (E.D.Pa.), aff'd per curiam, 353 F.2d 537 (3d Cir. 1965), cert. denied, 383 U.S. 945, 86 S.Ct. 1202, 16 L.Ed.2d 208 (1966); see also ......
  • BIOTRONIK, ETC. v. Medford Medical Instrument Co., Civ. A. No. 75-1042.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • May 12, 1976
    ...when the protesting party had an opportunity to rebut his opponent's claims at the arbitration hearing. E. g., Kirschner v. West Co., 247 F.Supp. 550 415 F. Supp. 138 (E.D.Pa.), aff'd per curiam, 353 F.2d 537 (3rd Cir. 1965), cert. denied, 383 U.S. 945, 86 S.Ct. 1202, 16 L.Ed.2d 208 (1966);......
  • Low v. Minichino, No. 28980.
    • United States
    • Court of Appeals of Hawai'i
    • September 29, 2011
    ...when the protesting party had an opportunity to rebut his opponent's claims at the arbitration hearing."); Kirschner v. West Co., 247 F.Supp. 550, 553 (E.D.Pa.1965) (court denied plaintiffs' motion to vacate arbitration award grounded on claim that defendant's witnesses had committed p......
  • Amerada Hess Corp. v. LOCAL 22026 FED. LAB. U., AFL-CIO, Civ. A. No. 74-842.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. District of New Jersey
    • October 31, 1974
    ...98 L.Ed. 168 (1953); Bernhardt v. Polygraphic Co. of America, 350 U.S. 198, 76 S.Ct. 273, 100 L.Ed. 199 (1956); Kirschner v. West Co., 247 F.Supp. 550 (E.D.Pa.1965), aff'd 353 F. 2d 537 (3d Cir. 1965), cert. den. 383 U. S. 945, 86 S.Ct. 1202, 16 L.Ed.2d 208 (1966); Federal Commerce & Na......
  • Request a trial to view additional results

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