Peck

In an action upon a contract, brought in the District Court on the ground of diversity of citizenship of the parties, judgment was entered for defendants. Plaintiffs appeal.

On April 8, 1938, plaintiff-appellants, Peck and Ruddle, entered into a “license agreement” with Shell Oil Company, predecessor of appellant Shell Oil Company, Incorporated. (Both companies are hereinafter referred to as Shell.) Therein Peck and Ruddle warranted that they owned all rights “to a new and useful core binding composition hereinafter referred to as ‘Core-Min-Oil/ consisting of two components, a secret solution and asphalt emulsion, and to new compositions for other foundry uses such as core covering.” They warranted further ■ that “Core-Min-Oil” was fully described in three specified patent applications. They then granted to Shell “an exclusive license to make, use or sell” the product covered by the patent applications “and other inventions in so far as they relate to compositions for foundry use owned or controlled by Peck or Ruddle.” A provision was included that “Shell Oil shall diligently attempt to sell Core-Min-Oil and other compositions for foundry use as covered by said patent…