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Contracts Keyed to Calamari
VRT, Inc. v. Dutton-Lainson
Facts
The Plaintiff-Appellee seller, VRT,Inc. (previously known as Sanitas, Inc.) (the "Plaintiff"), filed suit to obtain "its right to past and future royalties" pursuant to a purchase and sales contract. The product involved was a type of "patient care equipment". The Plaintiff alleges that the Defendant-Appellant, Dutton-Lainson (the "Defendant") failed to pay it royalties under a purchase and sales contract, and consequently breached that contract. The court concluded the Plaintiff did everything in its power to patent their "patient care equipment." After their attorney told them they were going to inevitably obtain a patent, the Plaintiff and the Defendant entered into an agreement whereby by the Plaintiff sold and the Defendant bought those assets relating to the "patient care equipment." At the closing, the Plaintiff delivered the Defendant a document entitled "BILL OF SALE AND ASSIGNMENT" purporting to assign the Defendant various rights relating to the "patient care equipment." Additionally, the Plaintiff delivered the Defendant documents that purported to assign the Defendant the patent application and the Plaintiff's interest in the invention referred to in the application. Although the Plaintiff thought their attorney procured a patent, in fact he did not do so until after the parties executed their contract. As a result, the Plaintiff filed suit against their attorney alleging that his negligence forced them to file this current lawsuit. That lawsuit was settled. The district court found the Defendant liable for past and future royalties.
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