Baldwin v. Von Micheroux

31 N.Y.S. 696, 83 Hun 43, 90 N.Y. Sup. Ct. 43, 64 N.Y. St. Rep. 382
CourtNew York Supreme Court
DecidedDecember 14, 1894
StatusPublished
Cited by3 cases

This text of 31 N.Y.S. 696 (Baldwin v. Von Micheroux) 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
Baldwin v. Von Micheroux, 31 N.Y.S. 696, 83 Hun 43, 90 N.Y. Sup. Ct. 43, 64 N.Y. St. Rep. 382 (N.Y. Super. Ct. 1894).

Opinion

PARKER, J.

This controversy relates to the ownership of and right to use a secret or unpatented process for manufacturing tobacco flavors, and to certain trade-marks and brands, used in the [697]*697business of the firm of Baldwin Bros. & Co. from the time of the commencement of this suit up to January 1, 1893. Baldwin Bros. & Co. were continuously in business in the city of New York for a period of over 30 years prior to the commencement of this suit. One of the members of the partnership was George B. Seymour, one of these defendants, who had been a member of the firm for nearly 10 years, and had been one of their clerks for some 15 years prior thereto. Von Micheroux, from December, 1883, until October, 1892, was in the employ of the firm as a traveling salesman, and the defendant Boulger had been in the employ of the firm as a compounder or rectifier of liquors for nearly 10 years prior to the commencement of this suit. Boulger and Seymour had full knowledge of the secret process by which the tobacco flavorings were manufactured. Indeed, while its manufacture was suggested by Mr. Baldwin, the experiments were conducted almost entirely by Boulger and Seymour. The theory of plaintiff’s suit is that these defendants conspired together, while Seymour was yet a partner and the other defendants in the employ of the firm, to form a partnership for the manufacture and sale of the tobacco flavorings, the secret process for the manufacture of which was the property of the firm of Baldwin Bros. & Co.; that their plan went beyond the manufacture and sale of the product under their own firm name, and involved a scheme to wrongfully divert the business of Baldwin Bros. & Co. to themselves. To accomplish this they caused circulars to be prepared, before any of them had terminated their relation with Baldwin Bros. & Co., in which they described themselves as being the sole owners of this secret process, and made use of trade-marks belonging to the partnership. These circulars they sent to those dealers who had been accustomed to do business with Baldwin Bros. & Co. That the ruin of the business of Baldwin Bros. & Co. might be more certainly accomplished for their benefit, the fact that Seymour was a member of the new firm was kept secret. He notified his partners that he should go out of the firm at their convenience, and January 1, 1893, was selected as the date of the dissolution of the firm. In the meantime he made the most of his opportunities to divert customers of Baldwin Bros. & Co. to the new firm in which his membership was kept secret. The trial court decided that the secret process belonged to the firm of Baldwin Bros. & Co. prior to its dissolution, which took place December 31, 1892; that the manufacture and sale of the extracts by the defendants prior to such dissolution were a fraud upon plaintiffs, and that defendants should account therefor; that an injunction should issue, restraining defendants from representing, by the issuing of circulars or otherwise, that they are the exclusive owners of the secret process, or of the trademarks and devices used in connection with the goods manufactured by such process. The conclusions of fact upon which the judgment is based are entirely sufficient for its support, and the reasons presented by the trial court for its decision are so satisfactory as to make it wholly unnecessary for this court to attempt to add anything to them,

[698]*698The appellants insist that there were errors in the rulings of-the trial court. Some of the findings of fact, they urge, are. unsupported by evidence. We cannot agree with them, but think there was evidence upon which to base every inference of fact. The appellants press upon the attention of this court exceptions taken to the admission in evidence of certain letters written by Seymour to Von Micheroux and Boulger during the time which elapsed between the agreement to form the new firm and the commencement of this suit, and from which it appears that Seymour was employed in taking away from his long-time partners all the trade he could reach. These letters disclose some of the fraudulent practices of which Seymour was guilty. They tend to show the nature of the conspiracy to wrong Baldwin Bros. & Co., and make it clear that Von Micheroux and Boulger were fully aware of the secret and fraudulent work in which Seymour was engaged against his old firm for the benefit of the new one. A reference to some of their letters will cause it to appear that the trial court was not in error in receiving them. November 14th, Seymour, then the plaintiffs’ partner, wrote to his partners in the new firm, expressing his annoyance that the plaintiffs had received an order from one of their regular customers, and makes an inquiry which indicates a wonder on his part whether their fraudulent scheme had proved ineffective in that one case, or whether Von Micheroux had neglected to perform his part of the work. It contains other suggestions of duplicity. But let the letter speak for itself:

“I have just come from 53 Broadway, and am very much annoyed to report we rec’d to-day 90 gal. order from Stern Bros., Chicago. What ails these d-— Jews? Did you not send them a circular? I have also other news to report. The inclosed is a copy of a letter from B. Bros. & Co., lawyers, to H. P. B., upon the propriety of suing out an injunction upon us. I am going there to-morrow, probably, but I am of the opinion, when I am through, there will be no injunction, I am quite sure.”

The day following, November 15th, Seymour advised what plaintiffs’ traveling salesman was doing. The next day he informed Von Micheroux that there might be danger that Marburg, one of plaintiffs’ oldest customers, would send an order to Baldwin Bros. & Co. instead of defendants. In the letter of November 19th to Von Micheroux, Seymour says, among other things:

“We have got them tight, I think, beyond all doubt. They don’t dare to attempt such a thing. Baird [the plaintiffs’ traveler], as I wrote you, went out over the N. Y. Central road, but so far has sold nothing. Only one letter from him since Monday, and no report of work beyond Albany. * * * They will have to discharge him, and toy it again, which will probably take the wind out of their sails, and all the fight out of them as well. From what I hear, the latter is pretty well squeezed out of them now. On Monday I am to see Guthrie, and you bet I will feel pretty independent. I know where I stand better than they do. * * * They are dying fast, much faster even than Itoberts, and I hardly think six months will see them in the ‘biz.’ If we hold Finzer and your old trade, they won’t last even that long after I leave.”

From the letter of November 22d we take the following:

“But we doubt it. Of course, they may be foolish enough to do so. No one can tell what fools may do. * * * Please, in all first orders, don’t fail to [699]*699give prices, terms, etc., as soon it will be impossible for writer to have access to B. B. Co.’s to get these particulars. * * * No orders at 53.”

These letters fairly indicate the general character of those received by the court, which defendants insist were immaterial. That Von Micheroux was as blameworthy as the other two defendants appears from his letters generally, and particularly in one of November 15,1892, immediately after the order from Chicago, of which Seymour complains in his letter of November 14th. He writes:

“I think we better send at once our trade-mark to Washington, and have it registered.

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Cite This Page — Counsel Stack

Bluebook (online)
31 N.Y.S. 696, 83 Hun 43, 90 N.Y. Sup. Ct. 43, 64 N.Y. St. Rep. 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baldwin-v-von-micheroux-nysupct-1894.