American Machine & Metals, Inc. v. De Bothezat Impeller Co.
United States Court of Appeals for the Second Circuit
166 F.2d 535 (1948)
American Machine (plaintiff) wanted to stop paying license fees to De Bothezat (defendant) and continue selling products that no longer used De Bothezat's patents, but hesitated to terminate the agreement because De Bothezat threatened to sue, claiming termination would also strip American Machine's right to sell its non-infringing products; American Machine sought a declaratory judgment on its post-termination rights before actually terminating, and the district court dismissed for lack of an existing controversy.
Whether the Declaratory Judgment Act requires the accrual of damages prior to authorizing a court to declare the rights and other legal relations of a party seeking such a declaration.