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National Labor Relations Board v. Marshall Field & Co.
129 F.2d 169
7th Cir.
1942
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*1 contention We understand counsel’s said: conclusion the court appli- plurality showing be that of a a say that inclined to “The court is not pat- cations about same time for made any the devices in there can be found com- covering ents similar or near-alike prior in combination art exact mechanical, binations, evidences rather say, found in claim it but argument has than inventive skill. The holds, 5 do the disclosures claim force, be if it it would more effective but what over genius not exhibit inventive patent- who not assert came from one did by the world was made manifest to the novelty able he of such combination when prior disclosures of art. felt himself the first inventor. think, court in view “The does not nar very greatly art, any prior art there was state * * * inquiry. All used, pat- rowed field elements genius Claim S of the Many been used were old. of them had ent in suit is invalid.” This, course, pre together. would not disturbing question There is a which the patentable a vent combination —nor valid a parties have failed to discuss. Plaintiff patent new these old elements a —on argued successfully, length, at however, does, It combination. make our anticipated prior show that the art Anner- inquiry precise, more more limited. en, inventor, assignor. It defendant’s question, An old raised facts, new con- seems overwhelmed defendant with (patentable fronts us. Invention novelty) patent many its In the face of citations. skill, or mechanical This is the anticipation, plaintiff is asserts —which? question. Our agrees conclusion puzzled with that explain the action of the Patent Judge. of the District is granting patent. Office in this The intima- claim of invention. Court, too, tion of the District was that conception apparatus required Anneren creator, have labored as a not ability mechanic, even the aof skilled as an must, inventor. however, We judge but rather that a of mediocre artisan. him judged, his works. So wrought he as a mechanic. Evidence of inventive hardly plaintiff completed Yet genius is not manifest in his work. argument when it asserts that it failed affirmed. by a few months to reach the Patent Of- fice ahead of applica- defendant patent very tion a ap- on a similar paratus. Naturally arises,— question If claim 5 obviously invalid art, effectively by prior blocked so what application about plaintiff filed a later, few sought pat- months wherein it ent for its similar combination? Are we patent infer this that coun- sel place view the Patent Office as where NATIONAL LABOR RELATIONS BOARD resistance is mild yielding? And MARSHALL FIELD & CO. worse, duped by being inventors —Are No. 7942. public grants, seal, these big under a

which, service, though legal evidencing Appeals, Circuit Court of Seventh Circuit. are, fact, May valueless? eth- counsel ically patentability assert he if reaches Office unpatentability first and Patent he Rehearing July Denied competitor? later arrives than his practice patent counsel to blow hot cold, vigorously pioneer attribute status discovery, only his client’s immedi- ately deny validity thereafter quality no inventive disclosed when finds another has his beaten to the client application very Patent an Office with for a product, similar is too often an embarras- sing patent argu- in a weakness counsel’s ment. *2 Act order extent Relations to that

within the of the Board. petition, its answer Board’s *3 spondent alleged compliance full with the decree, Board’s order and the cluding payment in- court’s Kelly to Swift such and of Gross, General Ernest Associate A. during sums as the have earned Arkel, Counsel, Asst. Van and Gerhard P. period prescribed decree, less the C., Counsel, D. Washington, all General Robert of by amounts received the Il- them under 111., Chicago, McKinlay, of Todd Unemployment linois Compensation Act C., Halloran, D. Washington, of Leo J. respond- during period. the same Whether Board, Labor Relations Attorneys, National fully ent complied has the to with order Watts, and Robert B. A. Norman Somers the extent that the order was within the Counsel, Wash- N.L.R.B., both of General depends upon the of Board the C., ington, petitioner. D. for questions answers to hereinbefore set 111.,for Bowers, Chicago, Ralph of forth. E. respondent. Only by English lan distorting the MIN- EVANS, KERNER, and Before guage say we could that TON, Judges. Circuit “earnings.” are word The “earn ings” denotes an good “economic which to MINTON, Judge. Circuit person rendering becomes a economic service.” entitled for New Webster’s Inter 21, Labor 1942the National February On Ed., Dictionary, unabridged national peti- 2d filed this court Relations Board 1937. See also National against Labor Relations of its order tion for enforcement Inc., Lines, Board Cir., Freight v. Brashear 8 parties respondent. Upon stipulation of 198; Phrases, F.2d 127 Words and enforcing the a consent decree order Perm.Ed., Earnings, 14, page 31. Volume thereon slight was entered modification employees The concerned did not receive 26, ex- February on Our the unemployment benefits in return for jurisdiction construe pressly reserved rendered, srvices order, and the amounts so re which paragraph 2(b) the Board’s “earnings” ceived did not constitute within respondent “(b) whole ordered to : Make meaning Consequently of the Kelly order. Georgia Papas said Anice Swift the order did not authorize their deduction. pay which any loss by suffered reason of the dis- To that we show the order as have con- payment crimination them beyond Board, powers of strued it is respondent them, respectively, money equal sum of a argued has that order they normally to that which would have Act; purposes not effectuate the of the 1, wages earned as from 8 and June employees (cid:127)that it makes the reinstated more 1940, respectively, to the date the offer whole, imposes and that therefore it reinstatement, less earnings their net upon respondent. penalty during period:” said 10(c) Section 29 U.S.C.A. The filed its answer to 160(c), jurisdiction upon confers Sec. 28, 1942, petition Board’s on March and Board, employer it finds that the proceed we now 2 paragraph construe engaged practices, in unfair labor to issue “ (b) of the order. * * per- requiring an order such son cease and desist from such unfair presented questions are: practice, labor action, and to take such affirmative under this paragraph Whether including reinstatement of em- spondent entitled was to deduct from ployees with or without pay, back as will Kelly equal amounts due Swift a sum policies effectuate the Act [chap- to the benefits them under the *” ter], Unemployment Compensation Illinois Act1 during para- forth set in the section, Under this pos the Board ; graph and sesses discretion to determine whether an 2(b) paragraph 2. If construed as pay order lost wages will effectuate preclude deducting purposes of the Act. The Board has amounts, whether under the National Labor ordered that the be made whole 1 Smith-Hurd Annot.Ill.Stat. Ch. Sections 217-250.

172 wages less net that by payment permitted lost to deduct what to them of in the con- wages. earned as earnings, general see rule we no merit tention to effectuate tort feasor is not entitled reduction the order fails purposes damages injured Act. one payment had insurance or question in substantial other collateral benefits would seem to be penalizes the this case whether the order analogous. Overland Construction Co. remedial, respondent. The Act Cir., Sydnor, Sprinkle v. 70 F.2d penalty power inflict a Board is without Davis, Cir., 111 F.2d 128 A.L.R. upon employer, though an it believes even 1101.” pur that such action would effectuate *4 poses Republic Corp. v. of the Act. Steel fact Swift mere that Board, money 311 Kelly may possibly U.S. National Labor Relations receive more 61 period unemployment L.Ed. for S.Ct. 85 the of their 7, 77, employed would have received if re pay the respondent In ordering the to private question. not of itself affect the wages instated their less lost of involving contract or tort cases loss has followed earnings, net the Board shown, employment, amount as we have the long used damages, well-established rules of damages of recoverable is not affected in tort contract actions.2 injured by paid the collateral benefits It is in on Contracts stated Williston cases, is person. award Yet these the in “ 1358, (Rev.Ed.1937) section that: compen punitive damages, of not of but by employee against the in an action the is to satory purpose of which damages, the de- employer wrongful discharge, for a a wrong injured party whole. The make the the duction the net amount of what pay by collateral doer not be benefited earned, might rea- employee or what he wronged. person the he has ments made to employment in sonably have other earned however, respondent that argues, nature, he would have like from what col- unemployment are noit benefits breach, fur- received there been no had paid from benefits, they are lateral ordinary damages.” nishes the measure of to. main- taxed funds is which Torts, Law of In the Restatement of the em- The tax is assessed tain. 924, (c), is said that: Sec. Comment tax deter- of the is ployers and the amount are earnings) damages (for “The loss of employer’s pay- by the size of the mined by plaintiff not reduced fact that the payroll percentage by the roll and no suffered net loss financial as employer to requires the which the law transaction, result of the entire as where he discharged em- paid to pay. Benefits money receives insurance an amount or employer’s to the charged ployees are equal wages employer to his lost from his account, and the amount wage from a friend.” or part in paid benefits so 1942 determines in n In the tax for 1943. If amount the rate of case recent of National Labor Re- proportion large enough paid in 1942 Freight Lines, Board lations v. Brashear 1942, employer’s payroll to the total Inc., supra, it was held that value required pay employer will be unlawfully groceries to an dis- contributed payroll its tax as a higher percentage employee charged not deductible from was year.3 following in the court said F.2d pay. his back [127 is not ultimate- that the tax we assume : “It is clear that order means If 199] consumers, this by employees or ly wages for services borne that sums as that re- supports the conclusion performed argument Aside be deducted. are to in the unem- spondent interest interpretation has some given to be the words discharged not, paid its think, used, ployment benefits could we our order be to the lead us interpreted employees, the em- but it fails intending give as imposed a wrongdoer, the Board conclusion that ployer, found be a bene- respondent. Cf. Overland penalty upon collateral gifts fit of or other benefits 338, Cir., F.2d 6 70 Sydnor, employee by during former his Const. v. ceived Co. unemployment. enough 338, 340; Cir., 2 454, Norristown v. Rettie, 287 F.2d v. Mass. 70 Shea See Hayes 571; Moyer, 44, 67 Pa. 355. 95 v. 192 N.E. A.L.R. 48, 901; Ch. Co., Smith-Hurd Annot.Ill.Stat. 119 A. & 98 Conn. Morris 234(c). City Ill.App. Chicago, 83 Sec. Cox Sydnor, 6 Overland Const. Co. v. paid (b) employee, question by discharged An The benefits were in viola- State, tion of Labor by respondent. How the not should be reim- by bursed raised the funds is a matter between for the loss occasioned dis- State his charge. ordinarily taxpayers. payment This loss is wages the State If the he earned had he not of the increases tax been dis- rate, charged, by the order less sums which he has the increase is caused not earned Board, discharge. since his by the of the State. What he has earned but law paid should include amount him as If had been fund unemployment insurance, because such sum taxation, respond- by surely general raised money earned him while was work- successfully not ent could contend ing, paid by employer his into the fund benefits were not collateral because their working, although while he was the actual payment might of tax. increase its rate payment to him was deferred until un- his paid Or the benefits had been employment period arrived. The insurance private organization to which charitable grew employment out his was so contributed, respond- surely had employment connected his wages, as not it had such an ent would claim that require determining its deduction in his payments interest in the should wage discharge. loss due to his unlawful believe that be credited its account. We *5 materially (c) present do not differ facts To construe a so statute that a dis- hypothetical Respondent charged from our cases. employee will receive more com- only employer pensation not the who is taxed under discharged when em- when ployed its dis- the Illinois nor are benefits to incongruous seems illogical. charged employees limited amounts contrary public policy to sound respondent.4 paid by that we Congress can ascribe to intent no accomplish a purpose. employees Whether are en retain, titled to under circumstances case, the sums received from Illinois Division of and Un Placement employment Compensation unemployed, were when such paid by respondent the same were employed, though they as were employees and the question between the express opinion, on which we Division no NORD BLDG. say re GEORGE F. except was not CORPORATION. earnings entitled to claim deduction as the form of collateral F. NORD BLDG. KAUSAL v. GEORGE unemployment insurance received CORPORATION. employees. No. 7883. We hold that the order of the Board Appeals, Seventh Circuit. Circuit Court of did not allow deduct paid to Swift 25,1942. Kelly within the order was the Board. supplemental shall issue a We enforcing Board’s order as we have

construed it.

EVANS, Judge Circuit (dissenting). why are several There reasons employee

amount un- employment insurance should be deducted. employee

(a) Paying the more than he have received had he remained employment tends to en- disputes. labor courage Smith-Hurd Ch. Sec. 247. Annot.Ill.Stat.

Case Details

Case Name: National Labor Relations Board v. Marshall Field & Co.
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Jun 26, 1942
Citation: 129 F.2d 169
Docket Number: 7942
Court Abbreviation: 7th Cir.
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