Caigan v. Plibrico Jointless Firebrick Co.

65 F.2d 849, 17 U.S.P.Q. (BNA) 533, 1933 U.S. App. LEXIS 3184
CourtCourt of Appeals for the First Circuit
DecidedMay 23, 1933
DocketNo. 2795
StatusPublished
Cited by5 cases

This text of 65 F.2d 849 (Caigan v. Plibrico Jointless Firebrick Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caigan v. Plibrico Jointless Firebrick Co., 65 F.2d 849, 17 U.S.P.Q. (BNA) 533, 1933 U.S. App. LEXIS 3184 (1st Cir. 1933).

Opinion

ANDERSON, Circuit Judge.

On July 22, 1929', the appellee, an Hlinois corporation, brought this suit for unfair competition against Caigan, a citizen of Massachusetts. The appellant answered, and filed a cross-bill. The trial was in open court, in November, 1930', followed by an opinion, containing findings, on December 9, 1930 (3 F. Supp. 983), and a final decree for the plaintiff on May 15, 1931. In the court’s opinion he ordered the cross-bill dismissed, but the record shows no decree and no appeal thereon. It follows that the arguments on both sides on the cross-bill are without foundation; that the sole question before this court is as to the validity of the decree for the plaintiff. Defendant (not a lawyer) tried and argued his own case.

The business in question is that of selling fire clay to line boiler furnaces. Furnaces are sometimes lined with fire brick set in water, and sometimes with fire clay whieh, when used, is sufficiently moist to be workable and adherent, and is then referred to as pliable in distinction from brick linings. The plaintiff is one of numerous concerns manufacturing and selling this material. It began business as early as 1914 under the name of Pliable Fire Brick Company, which, in 1924, was changed to Plibrico Jointless Firebrick Company. Plibrico is a coined word, registered by the plaintiff in the United States Patent Office as its trade-mark. The plaintiff’s business is widely extended; its sales amount to about $1,250,000 a year.

In 1916, the defendant Israel Caigan, after four years’ experience in heating and engineer work, went into business for himself at 110 State street, Boston, in heating, power plant, and mechanical equipment, adopting the trade-name “Caigan Engineering Equipment Company.” In 1918, he added the sale of pliable fire-brick material to his other lines. He has also carried on the business of repairing boilers, etc., sometimes employing three to five brick masons and their helpers in this boiler brick repair work. In July, 1925, he moved to 162 Tyler street, Boston.

He purchased his pliable fire-brick material from two of the plaintiff’s competitors, until, in April, 1920, he arranged with the [850]*850plaintiff for the exclusive right to sell plaintiff’s product Plibrico, in the New England States, agreeing, on his part, to handle no other pliable fire-brick material. This arrangement continued until November 8, 1925, when on 60 days’ notice and after much friction, it was terminated by the plaintiff. Thereafter litigation arose between the parties, marked by much ill feeling — -with charges and counter charges of slander and libel, and generally of unfair dealing — on both sides. We make no assessment of the comparative merits and demerits of the parties in 'these unseemly quarrels; but we must have a care not to beeome a party thereto by sustaining a frivolous or unsupported charge.

The record is singularly lacking in any evidence dealing with the merits of the various outputs of this pretty common combination apparently of clay and cement. We find nothing to indicate that Plibrico had, or was recognized in the trade as having, any peculiar or unusual quality for lining boilers, over that of other makes of the same sort of stuff. Such good will as attached to the name was grounded on advertising and pushing it on the trade.

For about five and a half years Caigan, under the name of “Caigan Engineering Equipment Company,” sold Plibrico. How far any good will that accrued in the course of this trade attached to the substance manufactured by the plaintiff, and how far it attached to Caigan doing business under the name of the Caigan Engineering Equipment Company, is left entirely uncertain. Plibrico is only the name attached to the plaintiff’s output of a fairly common, unpatented material, manufactured by numerous concerns.

Plaintiff’s right was limited to its trademark. But as pointed out by Mr. Justice Pitney in United Drug Co. v. Rectanus Co., 248 U. S. 90, 39 S. Ct. 48, 50, 63 L. Ed. 141, a trade-mark is not “a right in gross or at large, like a statutory copyright or a patent for an invention, to either of which, in truth, it has little or no analogy. Canal Co. v. Clark, 13 Wall. 311, 322, 20 L. Ed. 581; McLean v. Fleming, 96 U. S. 245, 254, 24 L. Ed. 828. There is no such thing as property in a trade-mark except as a right appurtenant to an established business or trade in connection with which the mark is employed. The law of trade-marks is but a part of the broader law of unfair competition; the right to a particular mark grows out of its use, not its mere adoption; its function is simply to designate the goods as the product of a particular trader and to protect his good will against the sale of another’s product as his; and it is not the subject of property except in connection with an existing business. Hanover Milling Co. v. Metcalf, 240 U. S. 403, 412-414, 36 S. Ct. 357, 60 L. Ed. 713.” Cf. Ammon & Person v. Narragansett Dairy Co. (C. C. A.) 262 F. 880. See, also, In re Jaysee Corset Co. (D. C.) 201 F. 779. The good will created by defendant’s sale of Plibrico for five and a half years was obviously divided, in undetermined and underminable proportions, between Caigan (doing business under the name of Caigan Engineering Equipment Company) and Plibrico. The termination of plaintiff’s relations with Caigan left him in full ownership of the good will attaching to his name, place of business, and telephone numbers. The tendency of customers to continue pre-existing business relations, to call the same telephone, and to go to the same office, when wanting the same sort of substance, belonged to Caigan. The desire of customers to obtain Plibrico, because of a possibly assumed special merit of Plibrico, belonged to the plaintiff; it may also have created some good will by advertising.

After the termination of the defendant’s agency for New England, the plaintiff put six other agents into this field; and took Cai-gan’s former office at 110' State street; but as the court below found, “seems not to have given any widespread notice that Caigan had ceased to represent it.” Caigan proceeded in the same general line of business, buying his pliable fire clay linings from another producer. He also had on hand a few drums containing Plibrico. He received certain orders for Plibrico addressed to him under the name he had used while the plaintiff’s representative. He filled these orders with Plibrico so long as his supply lasted. In not more than twelve eases, shortly after the termination of his relations with the plaintiff he filled these orders by shipping his pliable flint day products. On this point the court said:

“In the years immediately following his separation from the plaintiff, he received from time to time orders for Plibrico from persons who supposed that he was still selling it. These orders he filled with his own product ‘Flint-Clay.’ He billed it in that name. If any objection was made by the buyer, he explained that it was not Plibrico but was as good or better. It is not easy to prove a course of business of this sort; but from the instances which the plaintiff has been able to establish I have no doubt that the facts are as above stated, and that Caigan’s regular course of business, after separating from the [851]

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Bluebook (online)
65 F.2d 849, 17 U.S.P.Q. (BNA) 533, 1933 U.S. App. LEXIS 3184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caigan-v-plibrico-jointless-firebrick-co-ca1-1933.