75 N.J. Eq. 542 | N.J. | 1909
The opinion of the court was delivered by
The bill in this case prayed for an injunction restraining the defendants from using a secret process of the complainant for detinning tin scrap, and also for an accounting of the profits made by the defendants through the use of that process. The case went to a hearing on bill, answer, replication and proofs, and resulted in a decree of dismissal. On review by this court the decree was reversed, and it was held that the relief prayed for in the complainant’s bill should be decreed by the court of chancery,
The first point raised by counsel on the argument before us is thus stated in his brief: “The right of a complainant to an accounting in equity for the profits made by a defendant in the use of property depends upon the title of the complainant to the property so used, and it appears in the present case that the complainant had no title to the process used by the American Can Company." A reference to our earlier opinion in this case (72 N. J. Eq. (2 Buch.) 387) shows that it has already been'determined that, as betAveen the parties to this litigation, the complainant is the rightful possessor of the secret process for detinning scrap, and is entitled to protection against the defendant in its user. If the soundness of the abstract principle contained in this contention of the appellant be conceded, the complainant is Avithin it.
It is further insisted on behalf of the appellant that a complainant is not entitled to an accounting against a defendant for profits made b3r the latter in the use of a secret process belonging to the complainant, unless such use was made with fraudulent intent ; and it is said that no such intent appears in the case. If by this proposition the appellant intends to assert that where the user is begun in good faith, without any knowledge on the part of the defendant that he is infringing on the rights of the complainant, the defendant is entitled to continue it without incur
In the present case the proofs do not make it clear that the American Can Company, when they first engaged in the detinning of scrap by the use of the complainant’s secret process, had knowledge of the fact that they were infringing on the complainant’s rights by doing so; for although, as we stated in our former opinion, it was manifest from the proofs that the president of the can company had such knowledge, that knowledge should not be imputed to the corporation for the purpose of establishing fraud on its part. But after the complainant filed its bill in this cause, and spread its whole case before the can company upon that pleading, the latter had full notice of the complainant’s rights, and, in continuing the user of the secret process after that notice, it became a willful wrong-doer.
We conclude, therefore, that the complainant is entitled to an accounting from the can company of all profits made by it through the use of the secret process, from the date of the filing
On the other points raised by this appeal we concur in the opinion filed by Vice-Chancellor Howell in the court below.
As the order appealed from requires the can company to account for all profits made by it from the inception of its use of the secret process, there will be a technical reversal for the purpose of modifjdng the order to the extent which we have indicated.