In Indiana, a father invented a hand tool and got it patented, and then his son talked him into signing an incredibly one-sided exclusive licensing agreement that he downloaded from the internet and edited himself. The original contract had an option to terminate by licensor (father), but the son deleted it among other things.
The father wants out of the contract, and the son will not let him. There is no exit clause, but the son has breached the contract several ways. It says the son will provide quarterly reports, which he has not done. It says he will provide a business plan, which he has also not done. The contract also stipulates that improvements to the patent will be paid for by the son, so I told the father to stick a GPS on the side of the tool and force the son to patent it...repeat until he exits.
What is the cheapest/easiest way to get out of it? I can show damages of around $120,000 according to the son's numbers he has provided. The father doesn't want any money from his son, he just wants the contract invalidated. I was thinking Indiana has small claims court with a $6k limit. The father could sue in small claims for breach of contract. Does a small claims judge have the power to rule a contract invalid?
Answer
Assuming this is an Indiana case: This is not going to be solved in Small Claims Court if you have damages of $120,000.00. Small Claims Court may not have jurisdiction because of the fact that the invention is going to be valued at more than $6000 by both sides, so even if damages are not shown to be that much, you may have to file in Circuit or Superior Court.
The solution is to find a lawyer who can file for breach of contract and seek to rescind the contract on equitable grounds.
Answer
I agree with Voyle. I also suggest that not only do you seek rescission, but also seek damages. Since the father does not want damages, he can negotiate it away in exchange for rescission. He should hire counsel as he has already been burned without one.
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