77 Neb. 752 | Neb. | 1906
Lead Opinion
When the ruling upon the second demurrer was sustained for the reasons stated in the opinion, 75 Neb. 275, a motion for a new trial was filed, this being an action brought originally in this court. Upon this motion the attorney general filed an able and exhaustive brief. The propositions of law advanced by him as showing that our former decision Avas Avrong are vigorously supported both in his brief and upon the oral argument. Many decisions of other courts, both in this country and England, are cited and discussed with earnestness and ability. It became very manifest that, Avhatever might be thought of the conclusion reached by this court, the opinion filed had not served its intended purpose; it had not made plain the vieAvs of the court upon all the legal principles upon AArhich a right determination of the case must rest. The case is an important one both on account of the amount involved, if the contentions of the state are sustained, and on account of the character of the allegations upon which the claim of the state rests.
What interest or right of the state then has been interfered with or damaged by the acts of the defendant? The answer of the. state’s brief is: “The state engaged in the enterprise of publishing the decisions of the supreme court for the purpose of creating a fund to buy books for the state library. ⅜ * * For the purpose of creating a fund to purchase books for the benefit of the state library tfie state has by statute made provision for engaging in
1. The first point stated in the argument is: “Defendant accepted employment in the state’s publishing enterprise, and thereafter could make no clandestine profit out of its employer’s business, and such profit belongs to the state.” It is not entirely clear whether counsel intended to urge that this rule is applicable more especially to publishing enterprises, or whether it is the relation of principal and agent which they are intending to present in the discussion of this proposition. The first case cited under this point in the argument is an old English case, in which the defendant was employed by the plaintiff to make copies of certain drawings, and, while in that employment,
Let us first inquire how the law of principal and agent affects the determination of this case. As before stated, a great many authorities on this question are cited in the brief, but they are all substantially to the same effect. In Cottom v. Holliday, 59 Ill. 176, the court in its opinion used this language: “The duties and obligations of an agent are such that he cannot avail himself of any advantage his position may give him to speculate off his principal. All the profits or advantages gained in the transaction belong to the principal.” This expression is copied in the brief as being applicable to the facts in this ease1, but to our minds the rule of law declared in Cottom v. Holliday has no application whatever to the case at bar. In that case Mr. Cottom had employed Holliday to buy for him a piece of land from one Ritchie. Mr. Hol-liday purchased the land, and reported to Mr. Cottom that the land cost more than in fact it really did, and so obtained from Cottom more money than he was entitled to. It was held that Holliday, being the agent of Cottom to transact this business, could not .be alloAved to “speculate off his principal” in such manner. In the case at bar the defendant was not employed as an agent to carry on a printing and publishing business for the state. Its contract was to manufacture certain plates and certain books for the state. When they were manufactured they were to be delivered to the state and the defendant paid a certain agreed price therefor. This was the special employment of the defendant by the plaintiff. It was not
2. One of the oldest cases cited by the state, and a case Avhich may be regarded as a leading one, is Pulcifer r. Page, 32 Me. 404, 54 Am. Dec. 582. In that case the facts were that the plaintiff and defendant each had an iron chain Avhich had been broken into various pieces. The plaintiff took the pieces of the two chains to a blacksmith and had them united so as to make two other chains. The defendant took one of these chains, and the plaintiff brought the action to recover from him. The court in stating the case began Avith this expression: “This case presents a question of acquisition of property by accession, but does not involve an inquiry concerning the admixture or confusion of goods. It is a general rule of
3. The proposition is stated in the brief that, when one employs another to manufacture pictures or books for him, the person so employed has no right to make any other copies for his own benefit. Several cases are cited as illustrating this proposition and its application to the case at bar. Pollard v. Photographic Co., 40 L. R. Ch. Div. 345, is one of the cases relied on. That was an action to restrain the defendant “from selling, or offering for sale, or exposing by way of advertisement or otherwise a certain photograph of the plaintiff, Alice Morris Pollard, got up as a Christmas card, and from selling, or exposing for sale or otherwise dealing Avith such photograph.” The lady was photographed at defendant’s shop, and paid for a likeness of herself taken from negatives then made. “It Avas found by the plaintiff that a photographic likeness of Mrs. Pollard taken from one of the negatives, got up in the form of a Christmas card, was being exhibited in the defendant’s shop windoAV at Rochester.” In the course of the argument one of the judges remarked: “Injunctions have been granted to restrain a libel.” The photograph Avas a private matter, it never had been published, and the attempt to publish it on the part of the defendant was the injury complained of. The case illustrates the doctrine of the right of privacy. This right of the plaintiff to prevent her photograph being made public against her Avish was so Avell established in English law that it Avas unnecessary ff,o discuss that right. The question dis
Another case quoted from in the brief and strongly relied upon by the state is Tuck & Sons v. Priester, 19 L. R. Q. B. Div. 629. In the syllabus the case is stated as folloAVs: “The plaintiffs employed the defendant, who was a printer in Berlin, -to make for them copies of a drawing of which they had the copyright. The defendant executed the order, and also, without the plaintiff’s knowledge or consent, made other copies, and imported them into England. After this the plaintiffs registered their copyright under 25 & 26 Viet. c. 68, and after the registration the defendant sold in England some of the copies which he had imported.” The court held: “There was an implied contract that the defendant should not make any copies of the drawing other than those ordered by the plaintiffs, and that, independently of the statute, the plaintiffs were entitled to an injunction and damages by reason of the defendant’s breach of contract.” It
The case of Murray v. Heath, 1 Barn. & Ad. (Eng.) 698, Avas decided in England in 1831. The plaintiff delivered certain drawings to the defendant to be by him engraved on copper plates for the plaintiff’s sole use. The defendant engraved the drawings for the plaintiff, but while the drawings and copper plates were in the hands of the defendant he took off impressions on paper from the plates for his OAvn use, and this was the foundation of the action against him. In the first count against the defendant it was alleged “that the plaintiff was possessed of and had the right to the sole use of” the drawings in question; and, in the seventh count, “that the plaintiff Avas entitled to the pecuniary profit, benefit, and advantage to be derived in any way from all impressions taken and to be taken” from the copper plates; and, in the eighth count, “that the plaintiff was the proprietor of certain prints, which had been etched and engraved (named them), and had and was entitled to the sole right and liberty of printing and reprinting the same.” The other counts are not set out in the opinion. These allegations in these three respective counts do not appear to have been denied. No question was made in regard to these allegations. They
4. It is said in the brief that the rule contended for has been stated in a different form as follows: “Where material is delivered by the owner to a Avorkman to be Avorked up, together Avith some additional materials to be fur-' nished by the workman, into a manufactured article, the general doctrine is that the property in the finished product, including the accessorial material furnished, remains in the original OAvner.” What material of the state has been Avorked up with other material into a manufactured article? The only “materials” delivered by the state to the defendant are the written manuscripts furnished, and the plates made by defendants for the state. Have these been Avorked up, together with some additional material, into books uoav in defendant’s possession? Can' such authorities be seriously regarded as applicable to this case?
5. It is argued that the court was wrong in holding in the former opinion that no confidential relations were created between the parties by the contract in question,’ except such as arises from ordinary contracts of employment or bailment. Without doubt the laAV will imply an agreement on the part of the defendant not to use for its own private purposes the property of the state, entrusted to defendant’s care to enable it to carry out the contract; and, so far as defendant has done so, it is liable to the state for such damage as it has suffered on that account. The measure of such damages is pointed out, and Ave think ' correctly, in the former opinion. The state has a right to control the use of its OAvn property, and, Avhen by contract it places its property in the hands of its employees
We think that the judgment heretofore entered is right and it is adhered to.
Demurrer sustained and action dismissed.
Dissenting Opinion
dissenting.
The former opinion of the court, and the opinion of Chief Justice Sedgwick, filed herewith, in substance, hold : (1) That the state has no literary property in the opinions of the supreme court so that the defendant or any other person can be restrained from printing and publishing the same upon'its own account as an independent enterprise; (2) that the allegations of the petition with ref- • erence to recovery of damages are insufficient to support
These propositions being settled there still remains the inquiry whether,* under the conditions of the contract between the parties, the defendant has been guilty of, and is threatening such a violation of its terms as a court of equity will grant an injunction to restrain, on account of the inadequacy of the remedy by suit at law. The contract between the parties was entered into with knowledge by the defendant of the statute providing for the publication and sale of the supreme court reports. This statute became a part of the contract, of which the defendant was bound,to take notice. It knew therefore that the purpose of the contract was to procure 1,000 copies of each original volume and 500 copies of each duplicate to be printed from the state’s own plates furnished from its vaults, for the purpose of distributing a certain number of the copies to various officers and libraries, and of selling a much larger number, to create a library fund for the benefit of the state library. It whs therefore fully aware that the preparation of the manuscripts, the indexing, editing, proof reading, and the arrangement of the contents of each volume was performed under the contract by the officers of the state for the pecuniary benefit of the state. This was not the only object, but it was one of the purposes of the contract.
It may' be laid down as a general principle that no person has the right to use the property of another contrary to the wall and against the interest of its owner. This rule applies with greater force where the property of one has been delivered to another under a contract to use it for certain- specified purposes, and when the unauthorized use of the property for the benefit of the wrongful user would defeat the very object of the contract. When the state employed the defendant to print from its materials, furnished for the purpose, several thousand copies of supreme court reports, which the law prohibits the reporter of the supreme court from selling at less than a specified
With that portion of the opinion of Chief Justice Sedg-wick quoted hereafter I therefore concur: “The state had the right in the manuscripts and in the plates, and the defendant did wrong in using them without the consent of the state, and would be liable under suitable allegations for such injury as the state suffered by reason thereof. The contract between the plaintiff and the state was of such a nature that the agreement on the part of defendant not to use the plates and manuscripts of the state for such purpose might be reasonably implied, because the defendant had no right to so use them.” And, further: “Without doubt' the law will imply an agreement on the part of the defendant not to use for its own private purposes the properly of the state, entrusted to defendant’s care to enable it to carry out the contract. * * * The state has a right to control the use of its own property, and, Avhen by contract it places-its property in the hands of its employees for a special purpose, the law, in the absence of anything in the contract to the contrary, will imply an agreement that the property shall be used only for that purpose.” I further concur in so far as the opinion holds that the fact that the defendant entered into the contract Avith the state in noAvise deprived it of the right Avhich it had, in common Avith every other citizen, to procure in the ordinary manner copies of the opinions of the supreme court, to arrange, index, correct the proof,
From the nature of the contract it will be observed that the damages which may flow from its breach are almost impossible of ascertainment. They may continue for a long period of years by the defendant’s glutting the market with the reports which it is alleged it printed in violation of its contract, and thus deprive the state of the opportunity to reimburse itself for the money which it has paid for the printing of the books. The difficulty of ascertaining or recovering any specific damages furnishes a foundation for the interposition of a court of equity. Can it be questioned that, if the defendant was still in possession of these plates and manuscripts, and was using and threatening to use them in printing copies of the reports for its own use with the intention of selling them at reduced prices, it could not be enjoined? If it can be enjoined from using these plates, and from using the editorial labors paid for by the state in the preparation of indexes and the arrangement of manuscripts in violation of the contract, why should it not be enjoined from selling the unauthorized copies and thus profiting by its breach of the contract?
To sum up, the contract implied by its terms a negative covenant or restriction that the defendant would not use the property and material of the state, furnished it for the purpose of executing the contract, in such a manner as to defeat the object of the agreement and against the interest of the state. It made a breach of this implied agreement. The ordinary remedies provided by a legal action are clearly inadequate and, hence, a court of equity
Of course, this discussion has proceeded upon the assumption that the allegations of the petition are true. What the proof may show, if issues are made up, we cannot foresee.
In my opinion the petition states a cause of action in equity to enjoin a breach of contract, and the demurrer should be overruled.
The following opinion on motion for leave to file amended petition was filed March 7, 1907. Motion overruled:
Judgments, Vacating After Term. The provisions of sections 602-609 of the code apply to original actions in the supreme court. The court therefore has no power or jurisdiction to set aside a judgment and allow the amendment of a petition, in its discretion, after the final adjournment of the term at which the judgment was rendered.
Application has been made during the present term of the court to file an amended petition in this case. A final judgment of dismissal, upon the demurrer to the petition being sustained, was entered at the September, 1906, term, since the plaintiff had formally announced that it would stand on its pleadings. The defendant contends that, since that term adjourned without further proceedings, the judgment entered was a final disposition of the case.
The action was brought under the original jurisdiction of this court, which is concurrent with that of the district court in like actions. Ordinarily a judgment of the district court, after the adjournment of the term at which it was rendered, becomes final.. The power of the district court to vacate or modify its judgments, after the expiration of the term at which such judgments or orders are
Independent of these provisions, we are of the opinion that under the statutes we have no power to alloAV the amendment at this time. A discussion of the rules relative to original actions in the supreme court is to be found in In re Petition of Attorney General, 40 Neb. 402, and the conclusion is there reached that, since section 2 of the code provides there shall be but one form of action, and in section 903 it is provided that AAdiere the statute gives an action, but does not describe the mode of proceeding therein, the action shall be held to be the civil action of this code, therefore, original cases in this court must be governed by the rules of the code. If this action had been brought in the district court the right of the court in its discretion to set aside the judgment and to allow the plaintiff to amend its petu'on would expire Avith the term. As Ave have seen, both by the special provisions of section 610
Leave to file an amended petition is therefore
Denied.