Gillis

The question on this appeal concerns a liability asserted by Jenkins Petroleum Process Company, a Wisconsin corporation, hereinafter called Jenkins, against Robert C. Gillis, receiver of Western Oil & Refining Company, a Nevada corporation, hereinafter called Western. The claimed obligation of the receiver to Jenkins is predicated upon the receiver’s use of certain petroleum process patents owned by Jenkins, who seeks to impose against the receiver a licensee liability arising out of such use. The receiver denies that he is a licensee.

For a number of years Western has owned and operated an oil refinery at Wilmington, Cal. During 1926 and 1927, conversations were had between officers of Western and Jenkins relating to the installation in the refinery of two so-called Jenkins cracking units or “cracking stills” designed to increase the efficiency of the petroleum refining process. The processes governing the use of the stills were covered by patents owned by Jenkins. The stills themselves were being sold at the time in question by Graver Corporation which, in its business operations, was closely affiliated with Jenkins. Whenever a still was sold by Graver, a contract was made…