Chinchuba Inst. v. St. Tammany Parish Bd.

664 So. 2d 1230, 1995 WL 669479
CourtLouisiana Court of Appeal
DecidedNovember 9, 1995
Docket95 CA 0419
StatusPublished
Cited by4 cases

This text of 664 So. 2d 1230 (Chinchuba Inst. v. St. Tammany Parish Bd.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chinchuba Inst. v. St. Tammany Parish Bd., 664 So. 2d 1230, 1995 WL 669479 (La. Ct. App. 1995).

Opinion

664 So.2d 1230 (1995)

CHINCHUBA INSTITUTE—The Sound Option and The Parent-Teacher Group of Chinchuba School, Inc.
v.
ST. TAMMANY PARISH SCHOOL BOARD, Bill Brugmann and Terry Bankston.

No. 95 CA 0419.

Court of Appeal of Louisiana, First Circuit.

November 9, 1995.

*1232 Michael E. Holoway, Covington, for Plaintiffs—Appellants Chinchuba Institute—The Sound Option and the Parent—Teacher Group of Chinchuba School, Inc.

Harry P. Pastuszek, Jr., Mandeville, for Defendants—Appellees St. Tammany Parish School Board, Bill Brugmann and Terry Bankston.

Before SHORTESS, PARRO and KUHN, JJ.

KUHN, Judge.

This is a trade name infringement case in which plaintiffs-appellants, Chinchuba Institute-The Sound Option and the Parent-Teacher Group of Chinchuba School, Inc., (collectively "Chinchuba School") sought to enjoin defendants-appellees, St. Tammany Parish School Board, Bill Brugmann and Terry Bankston (collectively "the School Board") from using a registered trade name. The trial court denied the requests for preliminary and permanent injunctive relief. We reverse.

FACTS

Appellants operate a private school which administers to the needs of deaf and hearing impaired persons and have done so continuously since 1890. Chinchuba School is one of only twenty-four schools of its type in the nation. It attracts students from throughout the United States as well as from various foreign nations. In addition, it operates as a regional school serving students residing in St. Tammany Parish, including the Mandeville area.

In 1934, a fire destroyed the original Mandeville, Louisiana site upon which Chinchuba School had been built and operated. Retaining its name, the school relocated to Marrero, Louisiana.[1]

In January 1994, after obtaining input from parents and teachers, the School Board adopted a resolution naming a newly built public school in Mandeville, "Chinchuba Middle School." Representatives for appellants *1233 contacted the School Board in early March 1994, to protest the use of their registered trade name for the newly erected public school.[2] Despite numerous meetings at which representatives for the Chinchuba School requested their registered trade name not be used and voiced concerns for the likelihood of causing confusion, especially to deaf and hearing impaired persons seeking information on enrollment in appellant school, the School Board named the new public school in Mandeville, "Chinchuba Middle School."

On July 13, 1994, appellants filed a petition to enjoin the School Board from using their registered trade name. The parties agreed to consolidate the actions for preliminary and permanent injunctive relief, and after a hearing, the trial court denied appellants' requests. Appellants appeal, raising the following issues:

(1) Whether Chinchuba School is entitled to enjoin the School Board from using their registered trade name; and

(2) Whether the legislature intended LSA-R.S. 51:224 to include the activities of a public school.

LAW

Addressing the first issue raised by Chinchuba School, we note the applicability of LSA R.S. 51:211-300 (entitled "Trade Marks and Trade Names") to trade names was recently examined in Gulf Coast Bank v. Gulf Coast Bank & Trust Co., 94-2203 (La. 4/10/95); 652 So.2d 1306. In that case, plaintiff, Gulf Coast Bank, conducting business primarily in the Acadiana area, had registered its name with the Secretary of State. Defendant began doing business, primarily in the New Orleans area, under the name of "Gulf Coast Bank & Trust." On a motion for summary judgment, relying on Straus Frank Co. v. Brown, 246 La. 999, 169 So.2d 77 (1964), the trial and the intermediary courts determined plaintiff's inability to prove fraud on the part of defendant was fatal to its request for injunctive relief and dismissed the lawsuit.

The Louisiana Supreme Court took the opportunity in Gulf Coast Bank to revisit the issue of whether fraud is a proper requirement in seeking an injunction for trade name infringement, concluded it was not, and overruled Straus Frank Co. v. Brown. In so doing, the history of the piecemeal amendments to the cryptic statutory scheme entitled "Trade Marks and Trade Names" was reviewed. The Gulf Coast Bank court determined LSA R.S. 51:211-300 accorded substantive statutory protections to trademarks and service marks, and while the statutory scheme allowed trade names to be registered, it did not provide protection for infringement of those trade names. The court concluded the legislature intended to leave the substantive protection of trade names to the jurisprudentially developing law relating to trade names as part of the law of unfair competition. Gulf Coast Bank, 652 So.2d at 1311.

Under the unfair competition jurisprudence relating to trade names, the primary issues in a trade name infringement case are: (1) whether the party seeking the injunction has a protectable proprietary right in the name it seeks to exclude others from using; and (2) if so, whether there has been an infringement of that right. In determining whether one has a protectable trade name, actual use of the name (i.e., priority of appropriation) gives rise to a protectable proprietary interest in the name. Additionally, the trade name must be distinctive, either by being inherently distinctive or by having acquired distinctiveness through secondary meaning. In determining the distinctiveness of a trade name, the jurisprudence has generally divided trade names into four categories: (1) generic; (2) descriptive; (3) suggestive; and (4) arbitrary or fanciful. Gulf Coast Bank, 652 So.2d at 1309, 1313.

The concept of "secondary meaning" recognizes that words with an ordinary or primary meaning of their own, may, by long use with a particular product, service or business, come to be known by the public as *1234 specifically designating that particular product, service or business, and thereby rise to the level of a fully protected trademark or trade name. Secondary meaning may be proved by either direct evidence such as testimony from individuals, surveys, and proof of actual instances of confusion; or by indirect evidence such as the volume of business done under the name, the length of time the designation has been in use, advertising and promotional efforts, and the conspicuousness of the designation. Gulf Coast Bank, 652 So.2d at 1314.

Once a plaintiff has established it has a protected proprietary right in the name it seeks to exclude others from using, it still must show an infringement upon that right to obtain injunctive relief. Under Straus Frank, plaintiff was required to prove fraud on the part of the defendant. In Gulf Coast Bank, the court determined the fraud requirement imposed in Straus Frank was unduly burdensome, completely swallowed up the secondary meaning doctrine and failed to properly balance the purposes behind the protection of trade names. The court then held where one relies on secondary meaning to establish the distinctiveness of its name, in order to enjoin another's use of a similar name, there need only be proof of a likelihood of confusion. Gulf Coast Bank, 652 So.2d at 1319-1320.

I.

The School Board asserts a public school infringes on the use of a registered trade name only if it is using the name for a commercial purpose. The School Board contends its public school is not in commerce or in competition with private schools in a commercial sense, and its use of the name Chinchuba was not for a commercial purpose.

In

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Bluebook (online)
664 So. 2d 1230, 1995 WL 669479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chinchuba-inst-v-st-tammany-parish-bd-lactapp-1995.