Edgar Herbert Vickery v. Fisher Governor Company

The action appealed from in this diversity case is, first, the granting by the district court of appellee’s motion for summary judgment, and second, the denying of appellant’s motions to set aside the summary judgment and grant a new trial and to amend appellant’s first amended complaint for damages to add a new cause of action. Our jurisdiction to review the lower court’s action arises under 28 U.S.C. § 1291 .

Appellant is a citizen of the State of California. From 1955 to 1960, he developed and sold a ball valve used principally in the aerospace industry. Patent applications covered the design of the valves.

In 1960, appellant began extensive negotiations with appellee, an Iowa corporation. A ten year contract, containing royalty and sales agreements, resulted. Appellant assigned to appellee his interest in five patent applications relating to the valves for $100,000 and agreed, during the period royalties were payable, to serve as a consultant to appellee. As here relevant, the royalty agreement provided that “Fisher has the unrestricted right to terminate this agreement at any time by giving Vickery at least sixty (60) days prior written notice. * * *” R.T. 11. If appellee…