American Restaurant China Manufacturers Ass'n v. Corning Glass Works

24 Misc. 2d 634, 198 N.Y.S.2d 366, 1960 N.Y. Misc. LEXIS 3299
CourtNew York Supreme Court
DecidedMarch 31, 1960
StatusPublished
Cited by5 cases

This text of 24 Misc. 2d 634 (American Restaurant China Manufacturers Ass'n v. Corning Glass Works) 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 Restaurant China Manufacturers Ass'n v. Corning Glass Works, 24 Misc. 2d 634, 198 N.Y.S.2d 366, 1960 N.Y. Misc. LEXIS 3299 (N.Y. Super. Ct. 1960).

Opinion

Regis O’Brien, J.

The defendant seeks an order (1) dismissing the complaint on the ground that the plaintiff has not the legal capacity to commence this action, because it is a membership corporation and by reason thereof is prohibited from taking any assignment of an alleged claim and instituting suit thereon; or (2) dismissing the complaint because it appears on the face thereof not to state facts constituting a cause of action; or (3) dismissing the first cause of action alleged in the complaint on the ground that it fails to state a cause of action; or (4) dismissing the second cause of action alleged in the complaint because it fails to state a cause of action; or (5) requiring the complaint to be made more definite and certain, by stating the causes of action that were assigned to the plaintiff and by whom they were assigned and the facts upon which each of such causes of action are founded and the amount of each such causes of action; or (6) requiring the plaintiff to number and state separately:

(a) each cause of action assigned to it, by whom and when assigned, and the facts upon which each cause of action is founded and the amount of each such causes of action; and

(b) each cause of action based upon each publication of an advertisement by the defendant as respects each of the plaintiff’s assignors.

The complaint alleges two causes of action. For a first cause gf action, the plaintiff alleges:

[635]*635First: That it is a membership corporation of New York State.

Second: That defendant is a domestic corporation.

Third: That plaintiff corporation is “ comprised of member organizations” which “manufacture approximately ninety-five percent (95%) in dollar sales of all restaurant china manufactured in the United States ”.

Fourth: That prior to the commencement of the action, the several ‘ ‘ member organizations * * * duly assigned to plaintiff their respective causes of action against the defendant ”, growing out of the matters thereafter alleged in the -complaint.

Fifth: That plaintiff’s assignors for many years had manufactured restaurant chinaware and advertised extensively throughout the United States the sanitary nature and other advantages of china dinnerware manufactured by them.

Sixth: That by such means they had acquainted the users of and potential customers for, with the names of plaintiff’s assignors as being the manufacturers of such products.

Seventh: That by such advertising, the plaintiff’s respective assignors had gained the confidence and respect of the users of their products, particularly as to the sanitary benefits thereof, all of which was reflected in their respective increase of yearly sales.

Eighth: That the products of said assignors were received and used with complete confidence by the users thereof, particularly as to their sanitary qualities.

Ninth: That the plaintiff’s assignors and the defendant were and are competitors in the manufacture and sale of restaurant ware.

Tenth: That the defendant, “wilfully, maliciously, falsely and fraudulently caused to be published and widely circulated among the users and purchasers of restaurant dinnerware many advertisements allegedly representing the comparative sanitary qualities of the defendant’s product and restaurant china ” and further that ‘ ‘ upon information and belief, the advertisements of the defendant purported to illustrate and portray the relative sanitary qualities ” of the products “ as determined by a testing made by a leading, prominent and respected institution in the field of public health.”

Eleventh: That the alleged ‘1 test ’ ’ was ‘1 wilfully, maliciously, falsely and fraudulently ” represented by the defendant to show that the products of plaintiff’s assignors were inferior to those of the defendant from the standpoint of sanitary quality.

[636]*636Twelfth: That the defendant’s advertisements were false and known by the defendant to be false, yet nevertheless were circulated and published to injure and destroy the amicable business relations between the plaintiff’s assignors and their customers to enhance the defendant’s profits.

Thirteenth: That solely by reason of the “ wilful, malicious, false and fraudulent advertisements ” published and circulated by the defendant, the business of plaintiff’s assignors was reduced and former and potential customers led to believe that such products were of poor sanitary quality.

Fourteenth: That the plaintiff’s assignors were obliged to expend substantial sums for advertising to overcome the false representations of the defendant’s advertising.

Fifteenth: That the plaintiff’s assignors suffered damage in the sum of $1,000,000.

For a second cause of action, the plaintiff realleged the contents of paragraphs First through Eleventh and Thirteenth and Fourteenth of the first cause, in paragraph Sixteenth. It then continues:

Seventeenth: That the defendant negligently misinterpreted and misrepresented the tests which it had conducted.

Eighteenth: That the misrepresentations of the defendant, and the damages caused thereby, were due solely to its negligence and without any contributory fault on the part of plaintiff’s assignors.

Nineteenth: That defendant’s negligence and carelessness caused plaintiff’s assignors damages in the sum of $1,000,000.

The court has referred to the different allegations of the complaint somewhat in detail to show the tenor and gravamen of each cause of action. However, the question posed by the defendant’s motion, viz., does the plaintiff have the legal capacity to sue, must first be determined. Defendant claims it has not such capacity.

As will be noted, the complaint alleges that plaintiff is a membership corporation organized under the laws of New York State with its principal office in Erie County.

The certificate on file contains, as required by such law, a recital of the purposes for which it is incorporated. Clause numbered Second of the certificate which was filed in the Erie County Clerk’s office on June 11, 1957, recites “the purposes for which this corporation is to be formed are:

“ To educate the Public with the advantages and superiority of American manufactured restaurant china.
“ To promote high standards of business and to encourage research in the manufacture and use of restaurant china.
[637]*637‘ ‘ To maintain free competitive relations among all members of the restaurant china dinnerware trade. The Association may not, directly or indirectly, restrain the freedom of any member in competition or in trade, control or fix and maintain sales prices, limit production or allot or apportion territory or business.
To meet and discuss various problems of common interest from time to time confronting the manufacturers of vitrified restaurant china.
‘ ‘ In furtherance of and not in limitation of the general powers conferred by the laws of the State of New York, and the objects and purposes herein set forth, it is expressly provided that this corporation shall also have the following powers, viz: —

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Bluebook (online)
24 Misc. 2d 634, 198 N.Y.S.2d 366, 1960 N.Y. Misc. LEXIS 3299, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-restaurant-china-manufacturers-assn-v-corning-glass-works-nysupct-1960.