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CHROMALLOY AMERICAN CORP. v. FISCHMANN

Nos. 82-5452, 82-5469 and 82-5471

716 F.2d 683 (1983)

CHROMALLOY AMERICAN CORPORATION, a Delaware corporation, Plaintiff-Appellant, v. B. Wallace FISCHMANN, an individual, Defendant-Appellee. B. Wallace FISCHMANN, an individual, Counterclaimant-Appellant, v. CHROMALLOY AMERICAN CORPORATION, a Delaware corporation, Counterdefendant-Appellee. Harvey FISCHMANN, Joseph D. Kruss, and Dashe, Inc., doing business as Scorpion, Inc., Plaintiffs-Counterdefendants, v. B. Wallace FISCHMANN, Involuntary Plaintiff-Appellant, v. CHROMALLOY AMERICAN CORPORATION, a Delaware corporation, Defendant-Counterclaimant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided September 22, 1983.

Attorney(s) appearing for the Case

B. Wallace Fischmann, B. Wallace Fischmann, Professional Corp., Los Angeles, Cal., Tom Lallas, Levy & Norminton, Beverly Hills, Cal., for defendant-appellee.

William J. Robinson, Poms, Smith, Lande & Rose, Los Angeles, Cal., for plaintiff-appellant.

Before WRIGHT and SCHROEDER, Circuit Judges, and REED, District Judge.

SCHROEDER, Circuit Judge.

These related appeals all stem from a 1968 transaction in which Chromalloy acquired from B. Wallace Fischmann the patent license, related know-how, and business assets necessary to produce a machine, known as the "Scorpion," for rolling, measuring, and cutting carpet and other material. Chromalloy paid $365,000 for the patent license. In addition, Chromalloy agreed to pay royalties of 3% on future sales of the "Scorpion" and substantially...

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