Castrol Inc. v. Pennzoil Co.

799 F. Supp. 424, 1992 WL 179713
CourtDistrict Court, D. New Jersey
DecidedJuly 24, 1992
DocketCiv. A. 92-1364
StatusPublished
Cited by13 cases

This text of 799 F. Supp. 424 (Castrol Inc. v. Pennzoil Co.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castrol Inc. v. Pennzoil Co., 799 F. Supp. 424, 1992 WL 179713 (D.N.J. 1992).

Opinion

OPINION

WOLIN, District Judge.

In this action, Castrol Inc. (“Castrol”) has sued Pennzoil Company and Pennzoil Products Company (“Pennzoil”) for false and misleading representations of fact disseminated in commercial advertising in violation of § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). Castrol further asserts that Pennzoil’s media campaign violates the Consumer Fraud Act of the State of New Jersey, N.J.S.A. 56:8-2 and Common Law Unfair Competition. Castrol seeks a permanent injunction to enjoin Pennzoil from broadcasting, publishing or disseminating, in any form, or in any medium, the commercials or claims Castrol contends falsely describe or represent Pennzoil’s motor oil products. Additionally, Castrol seeks compensatory and punitive damages, and reasonable attorneys fees.

The Court has jurisdiction under 28 U.S.C. §§ 1332 and 1338 as to the claims brought pursuant to the Lanham Act, and has supplemental jurisdiction over the claims arising under the New Jersey Consumer Fraud Act and under common law unfair competition. Venue is proper in this district pursuant to 28 U.S.C. § 1391.

Suit was instituted on March 31, 1992 by Verified Complaint, and Castrol’s application for a temporary restraining order was denied on April 8, 1992. Castrol’s motion for a preliminary injunction was consolidated with a trial on the merits. See Fed. R.Civ.P. 65(a)(2). The merits trial began on April 27, 1992, and concluded on May 4, 1992. The Court heard testimony from ten witnesses. Castrol presented no testimony on monetary damages. Therefore, no monetary relief was considered and is deemed waived by Castrol.

Castrol and Pennzoil are two of the major motor oil companies who manufacture and distribute their products in the United States. Competition for market share is keen, especially among the do-it-yourself segment of the public. Each of these motor oil companies engages in extensive advertising campaigns and closely monitors the other’s media output. At the core of this dispute, is Pennzoil’s television and print advertising campaign that states Pennzoil “outperforms any leading motor oil against viscosity breakdown.” Closely coupled with Pennzoil’s viscosity breakdown claim are related claims that pertain to “engine failure and premature engine wear, longer engine life and better engine protection.” The television media campaign which began on or about February 15, 1992, features C.G. “Chuck” Rider, Bill Ingle and Michael Waltrip, all associated with a Nascar race team, John Andretti, Indy Car Race Team driver, and Arnold Palmer, a luminary of professional golf. Similar claims of superiority are disseminated through Pennzoil’s print campaign.

I. THE TELEVISION COMMERCIALS

Each of the television commercials features an individual associated with professional sports. Four of them feature individuals well known to professional race car competition. In the fifth, Arnold Palmer a professional golfer who has a long association with Pennzoil and currently competes on the professional golf tour, is a spokesman for Pennzoil. In each of these celebrity commercials, the phrase “outperforms any leading motor oil against viscosity breakdown” is flashed across the television screen after the celebrity has introduced the product and proclaimed its superiority. Accompanying the alleged offending claim is a Pennzoil trademark in the lower right-hand corner of the screen.

*428 A. C.G. “Chuck” Rider — Owner

In this commercial, Rider conveys to the viewer that viscosity breakdown would mean to him “engine failure ... and with Pennzoil he does not have that problem.”

B. Bill Ingle — Crew Chief

Ingle contends that viscosity breakdown can cause “engine failure and premature engine wear ... and with Pennzoil that is a problem that you don’t have to worry about.”

C. John Andretti — Driver

Andretti asserts that “longer engine life and better engine protection are definitely two things you can expect out of Pennzoil.”

D. Michael Waltrip — Driver

Because Waltrip drives a race car for a living, he “depends on the parts and pieces in his car ... and [he feels] confident knowing that Pennzoil is protecting the moving parts inside of his engine.”

E. Arnold Palmer

Palmer confides that in his youth his family, “not being [from] a very wealthy family [his family] had to take very good care of its equipment ... so that it lasted a long time and that's why they used Pennzoil.”

II. CASTROL’S CONTENTIONS

The following paragraphs taken from Castrol’s Verified Complaint succinctly summarize Castrol’s contentions:

8. In a series of five television commercials, and in other media, Pennzoil makes the following representation about its products: ‘Pennzoil outperforms any leading motor oil against viscosity breakdown.’ This claim of product superiority is false on its face. When compared to Castrol motor oils, Pennzoil’s motor oils do not provide superior protection against viscosity breakdown. Castrol motor oils equal or exceed Pennzoil’s products according to every industry standard of viscosity breakdown. In fact, in industry approved laboratory tests, two of Pennzoil’s three leading brands of motor oil failed even to pass the most demanding test of viscosity breakdown protection.
9. In addition, Pennzoil’s television commercials convey the false and misleading message that, because of Pennzoil’s purported viscosity breakdown advantage, Pennzoil motor oils prevent ‘engine failure’ better than other motor oils and afford customers ‘longer engine life’ and ‘better engine protection’ than other motor oils. These claims are baseless. There is no proof that consumers run any risk of suffering engine failure or shorter engine life if they use a motor oil other than Pennzoil.
10. Pennzoil’s television commercials are false, misleading and deceptive, in violation of federal and New Jersey law. Castrol seeks an injunction prohibiting defendants from broadcasting the Pennzoil television commercials at issue or from making similar claims in any medium.

III. PENNZOIL’S CONTENTIONS

Pennzoil denies that its primary message “outperforms any leading motor oil against viscosity breakdown” is literally false. Likewise, it asserts that the secondary message associated with engine failure, premature engine wear, longer engine life and better engine protection is true.

In support of its contentions, Pennzoil relies on an industry recognized test referred to as ASTM D-3945. 1

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Cite This Page — Counsel Stack

Bluebook (online)
799 F. Supp. 424, 1992 WL 179713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castrol-inc-v-pennzoil-co-njd-1992.