General Bedding Corporation v. Angel Echevarria, Angel Echevarria Co., Inc., D/B/A Somma Mattress, and Frederick Brandau

General Bedding Corporation appeals from a judgment of the United States District Court for the Central District of California granting summary judgment because the statute of limitations had run. We reverse because there is a genuine issue of material fact regarding constructive notice.

FACTS AND PROCEEDINGS BELOW

From 1974 to 1978, General Bedding, a Missouri corporation, designed, manufactured, imported, and sold air mattresses. In January of 1978, General Bedding authorized Fred Brandau, Vice President, Sales Manager, and Director, to investigate the uses of polyvinyl tubes in waterbeds. Brandau worked with Angel Echevarria, whose company was supplying mattress covers to General Bedding. In March of 1978, Echevarria applied for a patent for a waterbed design using tubes. In April of 1978, Brandau and Echevarria, without informing General Bedding, entered into a written agreement wherein Brandau would get a one-half interest in the invention and the profits derived from it. In June of 1978, General Bedding ceased business activities.

In 1980, the United States Patent Office granted Echevarria’s application, giving him patent number 4,221,013. The patent named Echevarria as…