American Novelty & Manufacturing Co. v. Manufacturing Electrical Novelty Co.

36 Misc. 450, 73 N.Y.S. 755
CourtNew York Supreme Court
DecidedDecember 15, 1901
StatusPublished

This text of 36 Misc. 450 (American Novelty & Manufacturing Co. v. Manufacturing Electrical Novelty Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Novelty & Manufacturing Co. v. Manufacturing Electrical Novelty Co., 36 Misc. 450, 73 N.Y.S. 755 (N.Y. Super. Ct. 1901).

Opinion

Lawrence, J.

This is a motion to restrain the defendants, their officers, directors, clerks, attorneys, agents and servants during the pendency of the action from selling or offering to sell, under the name of the Manufacturing Electrical Novelty Company, certain electrical goods, or electrical novelties, similar to those manufactured hy the plaintiff, and from circulating circulars, copies of which are annexed to the complaint, or any circulars similar thereto or containing substantially the same or any other false representations, and from pretending that the electrical novelties manufactured by the defendants have been manufactured by them, or any of them, for the past three years or for any time except since September, 1901; also from representing themselves or any of them as having sold to the public electrical novelties during the past three years, or through an agent, and from pretending or representing that they have any connection, directly or indirectly, with the plaintiff, and from manufacturing electrical batteries by a certain secret process, which belongs to the plaintiff, and referred to in the complaint, or from selling the same or from manufacturing or selling electrical batteries similar to the plaintiff’s batteries, or sefling electrical goods containing such batteries, and for such other and further relief as may seem just. The plaintiff is a domestic corporation organized March 11, 1898, and since that time has been continuously engaged in manufacturing and selling certain electrical novelties. Since February 1, 1899, its principal office and factory has been at No. 255 Centre street, in this city, and it has largely advertised its goods and has employed sales agents by means of which it has an extensive business throughout the United States, with branch offices in Chicago and Canada, and agencies in Europe, Japan, Canada, Australia, San Francisco, Mexico and Massachusetts. The goods which it manufactures are illustrated in its catalogue, which is annexed to the complaint. Plaintiff’s affi[452]*452davit shows that the company is known as the American Novelty or Electrical Novelty Company, and that mail addressed in that way has, until recently, always been delivered to the plaintiff at its office and place of business No. 255 Centre street. That in June, 1898, the defendant George Stein and one William V. Langlos were copartners under the firm name of Stein & Langlos, conducting a small repair shop near plaintiff’s place of business, and obtained work from plaintiff in manufacturing certain parts of its electrical goods on a small scale. In January, 1899, that firm and the plaintiff entered into a written agreement whereby the firm was to work exclusively for plaintiff, and the said firm became a tenant of the plaintiff at its factory No. 255 Centre street from that time until about August, 1901, during which time the plaintiff paid said firm sums of money amounting to over $50,000. It is also alleged that during all this time from August 15, 1899, and extending, over a period of nearly two years, the defendant Leopold Pollock was in the employ of the plaintiff as its shipping clerk» and that during the course of his employment Pollock became acquainted with the plaintiff’s manner of doing business and the terms on which it was selling its goods, the names and addresses of its customers and the prices at which the plaintiff was selling its goods to them, the discounts which it was in the habit of allowing to such customers, and that the plaintiff found that in July or August, 1899, Pollock and Stein and the defendant Kabisch were frequently conferring with each other and that the plaintiff’s manager, upon demanding an explanation from Pollock, obtained a confession from Pollock that he expected to go into a combination with the other defendants to compete with the plaintiff, and thereupon plaintiff dispensed with his services. It is also alleged that the plaintiff in its electrical goods uses a battery which is put together by a secret process and that Pollock obtained this secret process by pretending to the plaintiff’s manager that he desired to experiment with it and obtain an improvement in such process, and in that way induced Hubert to impart this secret to him, he, Pollock, promising to let the plaintiff have the benefit of any of his experiments or improvements. It is further alleged that in February, 1901, the said firm of Stein & Langlos and the defendant Kabisch formed a domestic corporation under the name of the Stein &■' Langlos Electric Manufacturing Company; that subsequently Stein induced Langlos to sell a [453]*453portion of Ms shares, so that ultimately Stein acquired fifty-one shares of the corporate stock of that company and obtained control of it; that after Pollock severed his connection with the plaintiff he associated himself with Stein and Kabisch and took with him a list of plaintiff’s customers, addresses and all other information that he had collected wMle in plaintiff’s employ, together with the secret process, and thereupon these three defendants, Pollock, Stein and Kabisch, organized a business which they called the “ Manufacturing Electric Novelty* Company, Incorporated,” at No. 216 Centre street; that they thereupon began and manufactured the batteries which were to be used in the electrical goods of the defendants, which are similar in every respect to plaintiff’s goods, although the' defendants never manufactured batteries before and did not know how to manufacture them, and would not have known how to have done so only for the knowledge obtained by Pollock in the plaintiff’s employ, etc. That in August, 1901, the defendant Stein, ascertaining that Langlos would not enter into the alleged conspiracy against the plaintiff, tried to get him to sell his stock to Stein, and, when Langlos refused, Stein prevented him from entering the factory of the company, although Langlos was the vice-president and a director thereof. That on September 10, 1901, the Manufacturing Electrical Novelty Company was incorporated by the said Stein and said Pollock and one Booth, who is the legal adviser of Stein, Stein Subscribing for seventy-nine out of the one hundred shares of the capital stock and Pollock twenty shares and Booth for one share. 'On September 15, 1901, the Stein & Langlos Company removed from the premises No..255 Centre street, and' has had no connection with those premises since that time, and that said Manufacturing Electrical Novelty Company never had any office or factory in the premises No. 255 Centre street, and that none of the defendants has had any connection with the said premises since September 15, 1901. It is further alleged in the plaintiff’s moving papers that subsequently the defendant sent out circulars, the heading of which is The Manufacturing Electrical Novelty Company, .Manufacturers of Electrical Novelties, Portable House Lights, Dry Batteries and Miniature Lamps, No. 216 Centre Street, New York, Factories No. 255 Centre Street and No. 6 Howard Street.” In that circular it is stated that the Manufacturing Electrical Novelty Company has been manufactur[454]*454ing electrical novelties “for the past three years, and having heretofore distributed these goods to you as well as to all our other clients through an agent we propose henceforth to deal direct with you ourselves in the future, which we believe you will agree with us will be to our mutual advantage and profit,” etc.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Chas. S. Higgins Co. v. Higgins Soap Co.
39 N.E. 490 (New York Court of Appeals, 1895)

Cite This Page — Counsel Stack

Bluebook (online)
36 Misc. 450, 73 N.Y.S. 755, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-novelty-manufacturing-co-v-manufacturing-electrical-novelty-nysupct-1901.