THE FAIR
v.
KOHLER DIE AND SPECIALTY COMPANY

U.S. | 1913-03-24
No. 169
228 U.S. 22 Supreme Court of the United States (1913) Negative Treatment
Also reported at: 57 L. Ed. 716 · 33 S. Ct. 410 · 1913 U.S. LEXIS 2348 · SCDB 1912-139
Cited by 506 cases

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Synopsis

Kohler Die and Specialty Company, a patentee of gas heating devices, brought an equity suit against The Fair for selling the patented devices below the price the patentee had imposed as a condition of sale, claiming patent infringement. The Supreme Court affirmed jurisdiction over the case, holding that when a plaintiff alleges a cause of action based on federal patent law in good faith and with substance, the federal courts have jurisdiction regardless of whether the defendant's plea contests the merits or denies the legal right at issue, and jurisdiction cannot be defeated by a plea challenging whether the patent law actually supports the claimed right.


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Opinion of the Court
Me. Justice Holmes

Mr. Justice Holmes delivered the opinion of the court'.

This is a bill in equity brought by the appellee, an Illinois corporation, against The Fair, also an Illinois corporation, for an injunction against The Fair’s making and vending certain; patented gas heating devices, or selling such devices of the plaintiff’s manufacture at less than one dollar and a half each; for an account and for triple damages. The bill alleges that the plaintiff has. the sole, and exclusive right to make and sell the devices throughout the United States and that the defendant with full notice has sold and is selling the same without license . in violation of the plaintiff’s right. . It then.goes on to, allege that the .plaintiff, when it sells, imposes the condition that the goods shall not be sold at less than one dollar and fifty cents, and attaches to the goods a notice to that effect and that any salé in violation of the condition, or use of the article if so sold, will be an infringement of the patent. It further avers that the defendant obtained a stock of the devices with notice of the conditions and sold them for a dollar and a quarter each in infringement of the plaintiff’s rights under the patent.

The Fair , appeared specially and pleaded that all the devices in question sold by it were purchased from the plaintiff by a jobber, that the jobber paid the full price .to the plaintiff, that upon these facts there was no question arising under the patent or other laws of the United States, ánd that-the court had no jurisdiction of the case. The case was set down for hearing on the plea, so that the foregoing allegations of fact must be taken to be true. Farley v. Kittson, 120 U. S. 303, 314. The court in deference to Victor Talking. Machine Co. v. The Fair, 123 Fed. Rep. 424, maintained its jurisdiction, and as the defendant did not answer within, the time allowed,^ took the bill as confessed and made a decree for the plaintiff. The judge stated that he did not feel at liberty to give a formal certificate blit added what appears from the record, that the defendant did nothing except to file the above plea. The appeal is upon the question of jurisdiction alone. There, is no uncertainty or ambiguity and we are of opinion that the case is properly here. Petri v. Creelman Lumber Co., 199 U. S. 487, 492.

Obviously the plaintiff sued upon the patent law, so far as the purport and intent of the bill-is concerned. It .was a resident of the same State as-the defendant and could have had no other ground. In’ the earlier paragraphs of the bill it charged an infringement of its patent rights in general terms, aiiddt sought triple damagés, which it could have done only by virtue, of the statute. It is true that-later it set up the. sale at a dollar and a. quarter as an infringement and that we may guess that this is the only one, although.it does not say so. But if that, is the plaintiff’s only cause of action, still the plaintiff relies upon it as an •infringement and nothing else — so that, good or bad, the cause of action alleged is a cause of action under the laws of the United States!

Of course the party who brings a suit is master to decide what law he will rely upon and therefore does determine whether he will bring a ‘suit arising under’ the patent or other law of the United States, by his declaration or bill. That question cannot depend upon the answer, and accordingly jurisdiction cannot be conferred by the defence even when anticipated and replied to. in the bill. Devine v. Los Angeles, 202 U. S. 313, 334. Conversely, when the plaintiff bases his cause of action upon an act of Congress jurisdiction cannot be defeated by a plea denying the merits of the claim. It might be defeated, no doubt, in a case depending on diversity of citizenship by a plea to the citizenship of parties. Interior Construction and Improvement Co. v. Gibney, 160 U. S. 217, 219. We are speaking of a case where jurisdiction is incident to a Federal statutory cause of. action. Jurisdiction is authority to decide the case either way. Unsuccessful as well as-successful suits máy be brought upon the act, and a. decision that a patent is bad, whether on the facts or the law, is as binding as one that it is good. See Fauntleroy v. Lum, 210 U. S. 230, 235. No doubt if it should appear that the plaintiff was not really relying upon the patent law for .his alleged rights, or if the claim of right were frivolous, the case might be dismissed." In the former instance-the suit would not really and substantially involve a controversy within the jurisdiction of the court, Excelsior Wooden Pipe Co. v. Pacific Bridge Co., 185 U. S. 282, 287, 288, and in. the latter the jurisdiction wpuld not .be denied, except possibly in form. Deming v. Carlisle Packing Co., 226 U. S. 102, 109. But if the plaintiff, really makes a substantial claim under an act of Congress there is jurisdiction whether the claim ultimately be held good or bad. Thus in Vicksburg Waterworks Co. v. Vicksburg, 185 U. S. 65, 68, it was pointed out that, while the certificate inquired whether a Federal question was involved upon the pleadings, and while, the counsel had argued the merits of the case, the function of this court “is restricted to the inquiry whether, upon the allegations of the bill of complaint, assuming them to be true in point of fact, a Federal question is disclosed so as to give the Circuit Court jurisdiction in a suit between citizens of the same State.” For that reason the court-declined, to pass upon the validity of the contract the obligation of which was alleged to have been impaired. Ibid. 82. S. C., 202 U. S. 453, 458. Mercantile Trust & Deposit Co. v. Columbus, 203 U. S. 311, 322, 323. Knoxville Water Co. v. Knoxville, 200 U. S. 22, 32.

In this case the plea though purporting to go to the jurisdiction of the court merely means that the patent, law does not give a patentee a right to impose such a condition as the plaintiff attempted to impose upon second purchasers of the device. The plaintiff no doubt maintains that the law does give him that right, ánd that even if the alleged infringements are confined to the acts admitted by the plea they are. infringements none the less. The .bill hardly can be confined to that claim, but if it were, it is made in good faith and is not frivolous, it is a claim of right under the patent law and the Circuit Court properly took jurisdiction of the case. Excelsior Wooden Pipe Co. v. Pacific Bridge Co., 185 U. S. 282, 295. White v. Rankin, 144 U. S. 628, 635, 636, 639.

Decree affirmed.


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Citator

Cited By (147 total)

  • Bell v. Hood, 327 U.S. 678 (U.S. 1946)
    …h may in some circumstances be availed of by a plaintiff, the fact that his pleading does not bring him within that class as one entitled to the remedy, goes to the sufficiency of the pleading and not to the jurisdiction. The Fair v. Kohler Die Co., 228 U. S. 22, 25; Binderup v. Pathe Exchange. 263 U. S. 291, 306-308, and cases cited. But where, as here, neither the constitutional provision nor [*686] any act of Congress affords a remedy to any person, the mere assertion by a plaintiff that he is entitled t…
    1 / 2
  • Hagans v. Lavine, 415 U.S. 528 (U.S. 1974)
    …onstitutional claim sufficient to confer jurisdiction on the District Court to pass on the controversy. Jurisdiction is essentially the authority conferred by Congress to decide a given type of case one way or the other. The Fair v. Kohler Die Co., 228 U. S. 22, 25 (1913). Here, §§ 1343 (3) and 1983 unquestionably authorized federal courts to entertain suits to redress the deprivation, under color of state law, of constitutional rights. It is also plain that the complaint formally alleged such a deprivatio…
  • Gully v. First Nat'l Bank in Meridian, 299 U.S. 109 (U.S. 1936)
    …st be disclosed upon the face of the complaint, unaided by the answer or by the petition for removal. Tennessee v. Union & Planters Bank, 152 U. S. 454; Louisville & Nashville R. Co. v. Mottley, 211 U. S. 149; The Fair v. Kohler Die & Specialty Co., 228 U. S. 22, 25; Taylor v. Anderson, 234 U. S. 74. Indeed, the complaint itself will not avail as a basis of jurisdiction in so far as it goes beyond a statement of the plaintiff’s «ause of action and anticipates or replies to a probable defense. Devine v. Los…

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