Laursen v. Lowe, 5485

• Citation: 46 F.2d 303
• Decision Date: 16 January 1931
• Docket Number: No. 5485,5486.,5485
• Parties: LAURSEN et al. v. LOWE.
• Court: U.S. Court of Appeals — Sixth Circuit

46 F.2d 303 (1931)

LAURSEN et al. v. LOWE.

Nos. 5485, 5486.

Circuit Court of Appeals, Sixth Circuit.

January 16, 1931.

H. J. Crawford, of Cleveland, Ohio (Squire, Sanders & Dempsey, of Cleveland, Ohio, Robinson & Parsons, of Holland, Mich., Slabaugh, Seiberling, Huber & Guinther, of Akron, Ohio, and Thos. N. Robinson, of Holland, Mich., on the brief), for appellant Laursen.

Willis Bacon, of Akron, Ohio (Burch, Bacon & Denlinger, of Akron, Ohio, and Stolts & Crocker and Victor M. Stolts, all of Eau Claire, Wis., on the brief), for appellee Lowe.

Before MOORMAN, MACK, and HICKENLOOPER, Circuit Judges.

HICKENLOOPER, Circuit Judge.

Appellee Lowe instituted an action on the equity side of the court below and secured a decree for accounting, and declaring a 20 per cent. interest in complainant in all royalties to be paid to appellant, defendant below, under certain patents for the curing and vulcanizing of automobile tubes and tires by a hot-water process. The parties disagree upon, and address much of their argument to, the issue whether their relationship was that of joint adventurers or merely of parties to a unilateral contract, particularly as bearing upon the complainant's right to maintain his suit in equity. This issue does not seem to us to be vital. Even though the question be presented as one of simple breach of contract, the fact that compensation was to be paid from future royalties which were not subject to accurate estimate or computation would, we think, be sufficient to confer equity jurisdiction either in analogy to matters of partnership, or upon the ground that an equitable interest in such royalties themselves was created when and as they were received. Wylie v. Coxe, 15 How. 415, 14 L. Ed. 753; Ingersoll v. Coram, 211 U. S. 335, 365, et seq., 29 S. Ct. 92, 53 L. Ed. 208; Valdes v. Larrinaga, 233 U. S. 705, 709, 34 S. Ct. 750, 58 L. Ed. 1163.

The only other question presented is one of fact, viz. whether the parties had entered into a binding contract that the appellant would pay to the appellee 20 per cent. of all royalties secured from manufacturers, in return for services of the appellee in interesting such manufacturers, procuring their representatives to be sent to Eau Claire, Wis., to see the process in operation at the Gillette Rubber Company plant there, and obtaining licensing agreements with them. While much weight is ordinarily, and rightly, given to the opinion of the trial judge who has seen the witnesses upon the...