Adam Hat Stores, Inc. v. Lefco

44 F. Supp. 442, 53 U.S.P.Q. (BNA) 21, 1942 U.S. Dist. LEXIS 3009
CourtDistrict Court, E.D. New York
DecidedMarch 6, 1942
DocketNo. 586
StatusPublished
Cited by2 cases

This text of 44 F. Supp. 442 (Adam Hat Stores, Inc. v. Lefco) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adam Hat Stores, Inc. v. Lefco, 44 F. Supp. 442, 53 U.S.P.Q. (BNA) 21, 1942 U.S. Dist. LEXIS 3009 (E.D.N.Y. 1942).

Opinion

GANEY, District Judge.

This is a bill in equity brought by the plaintiff to enjoin and restrain the defendants from conducting their business under the style name, “Adams Clothes”, in the cities of Philadelphia, Norristown, Chester, Wilmington and Trenton, or from using any other name deceptively similar to that of the plaintiff, or more particularly under any name containing the word “Adam” or “Adams”. After carefully reviewing a great deal of testimony and a large number of exhibits, the court makes the following:

Findings of Fact.
(1) The plaintiff is a corporation organized under the laws of the State of New York and is engaged largely in the sale at wholesale and retail of men’s hats, and in a small way some wearing apparel such as neckwear and gloves throughout the United States.
(2) The defendants are citizens and residents of the State of Pennsylvania, engaged in the sale of men’s clothing and wearing apparel in the cities of Philadelphia, Chester, Norristown, Wilmington, Delaware and Trenton, New Jersey, in all of which men’s hats are sold excepting in the City of Trenton.
(3) Since 1924 the plaintiff has been continually engaged in the sale at retail and wholesale of hats and caps under the name Adam throughout the country, the annual sales of which at the time of the institution of this action ran around seven million dollars.
(4) The plaintiff now has ninety-five (95) company owned stores, one hundred twenty-nine (129) agencies (those who handle only Adam products, but are individually owned) and two thousand dealers (those who sell Adam products along with any other products).
(5) In this general area the plaintiff conducts two company owned stores in Philadelphia, the first of which was opened in September, 1930, at Thirteenth and Juniper Streets, seven sales agencies in Philadelphia, and one company owned store in Trenton, which was opened in 1931; a sales agency in Norristown, Pennsylvania, which was opened on September 19, 1933; a sales agency in Chester, Pennsylvania, opened on February 2, 1935 and one sales agency in Wilmington, Delaware, opened on March 5, 1934.
(6) In the year 1933 the plaintiff moved his store to Thirteenth and Market Streets in the City of Philadelphia.
(7) The plaintiff has spent large sums of money in radio broadcasting since the opening of its store in Philadelphia in 1930, and among others, sponsored sport programs and championship fights.
(8) In Philadelphia alone the plaintiff’s sales have increased from forty-four thousand dollars ($44,000) in 1931 to two hundred ninety thousand dollars ($290,000) in 1939.
(9) The plaintiff has an established selling price for its hats of two dollars and 95/100 ($2.95).
(10) In September, 1920, one of the defendants, Arthur Lefco, opened a store under the name of Charles Adams Co. and sold men’s custom tailored clothes under the brand name “Adams Clothes”.
(11) In September, 1920, defendant opened a store at Trenton, New Jersey, selling clothes under the brand name “Adams Clothes”.
(12) In the spring of 1923 both the Trenton and Philadelphia stores were closed, Mr. Lefco retiring from business by reason of illness.
(13) From the spring of 1923 to the fall of 1933 the defendant, Arthur Lefco, never conducted a business under the style name “Adams Clothes” or Charles Adams [444]*444Co., nor under any style name with, the word Adams in it.
(14) That the defendant from the fall of 1923 until the spring of 1924 conducted a business under the name of “Clarks” at 1514 Market Street, and from the spring of 1924 until the fall of 1924 at 11 North 13th Street, under the name of “Arthur & Kennedy” and “Arthur, The Tailor”, and from the fall of 1924 to September, 1933, at 902-910 Arch Street under the name of “Herman Tailoring Co.” and “Herman & Company”, in all of which he sold clothes under the brand name “Adams Clothes”.
(15) On September 9, 1933, the defendant, Arthur Lefco, opened a store at 10 North 11th Street, devoted exclusively to “Adams Clothes” under the style name of “Adams Clothes” and continues so to do.
(16) The style name “Adams Clothes” was registered with the Court of Common Pleas of Philadelphia County on July 31, 1933, and with the Secretary of the Commonwealth on August 4, 1933.
(17) The defendants opened the following additional stores under the style name of “Adams Clothes” at the following dates:

Norristown, Pa. on September 9, 1935;

Chester, Pa. on March 4, 1936;

Wilmington, Delaware on March 14, 1937;

Trenton, New Jersey on September 9, 1939.

(18) Defendants moved their store from 10 North 11th Street to 1013 Market Street on September 13, 1940.
(19) On November 15, 1933, the plaintiff wrote a letter to the defendants, protesting to the defendants’ use of the style or business name, “Adams Clothes”.
(20) On February 27, 1934, the plaintiff filed a Bill in Equity in the Court of Common Pleas of Philadelphia County, praying that the defendants be restrained preliminarily, and on final hearing from using the style or business name, “Adams Clothes”.
(21) On March 20, 1934, a hearing was held on the plaintiff’s application for a preliminary injunction at the end of which,, the plaintiff withdrew the application for a preliminary injunction and on the following day, March 21, 1934, an attempt was made to discontinue the proceedings, and on application by the defendants the Supreme Court of Pennsylvania remitted the record to the Court of Common Pleas-refusing to allow the discontinuance, and the matter has remained in this status-down to the present time.

Conclusions of Law.

(1) The court has jurisdiction of the parties and the cause of action.

(2) The use by the defendants of the style or business name -of Charles Adams Co. in the City of Philadelphia from 1918 to 1923, selling exclusively a product known as “Adams Clothes” and the continuance of the sale of men’s clothes under the brand, “Adams Clothes” from 1923 to 1933- — -although trading under a number of different style or business names, none of which included the word “Adams” — did not make the use by the defendants of a style or business name “Adams Clothes” in 1933, an infringement of the plaintiff’s trademark or constitute unfair competition to the plaintiff, who-opened an Adam Hat Store in Philadelphia in September 1930.

(3) The plaintiff is guilty of laches.

The testimony shows that the defendant, Arthur Lefco, had an established business at 114 South 11th Street, a mid-city location, in the City of Philadelphia, and that he sold and advertised men’s clothing under the name “Adams Clothes”, and had gained —either through the sale of “Adams Clothes” or by reason of the style or business name of Charles Adams Company— the name of Mr. Adams by a goodly number of his customers.

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Bluebook (online)
44 F. Supp. 442, 53 U.S.P.Q. (BNA) 21, 1942 U.S. Dist. LEXIS 3009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adam-hat-stores-inc-v-lefco-nyed-1942.