Coca-Cola Co. v. Dixi-Cola Laboratories, Inc.

155 F.2d 59
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 3, 1946
Docket5431
StatusPublished
Cited by36 cases

This text of 155 F.2d 59 (Coca-Cola Co. v. Dixi-Cola Laboratories, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coca-Cola Co. v. Dixi-Cola Laboratories, Inc., 155 F.2d 59 (4th Cir. 1946).

Opinions

SOPER, Circuit Judge.

Upon the former appeal in this case, Dixie-Cola Laboratories, Inc. v. Coca-Cola Co., 4 Gir., 117 F.2d 352, our attention was directed mainly to the contention of the Coca-Cola Company that the names Dixi-Cola, Marbert Cola and Marbert the Distinctive Cola infringe the trade mark “Coca-Cola” because the word “Cola” leads the public to believe that the defendants’ product originated with the Coca-Cola company, This contention was opposed not only by the defendants but also by the manufacturers of other cola beverages who in one way "or another co-operated with the defendants in presenting their appeal. We rejected the contention and held that the well established trade mark of the Coca-Cola Company is not infringed by the mere use of names which include the suffix “cola”, especially since the evidence showed that the word has become a generic term generally used in common 'by a number of manufacturers as part of their trade names to indicate a kind or class of beverage. We held, however, that the evidence in the case justified the finding that the defendants’ product had been palmed off in soda fountains and bar rooms as Coca-Cola with the knowledge and approval of the defendants, and therefore upheld the injunction issued by the District Court to prohibit such illegal action.

When the case was remanded to the District Court, the interlocutory decree was modified and a special master was appointed to hear evidence and report what damages the plaintiff had sustained and what profits the defendants had realized from their illegal actions. The report of the [62]*62special master, as modified in some particulars by the District Judge, is now the subject of an appeal by the plaintiff and a cross appeal by the defendants.

The appeal of the Coca-Cola Company presents the following questions: (1) The finding of the master that certain evidence offered by the plaintiff was insufficient to show that prior to 1942 certain distributors who bottled and sold defendants’ product were putting up the beverage in quart size bottles and selling them to taverns, which made a practice of substituting defendants’ product for Coca-Cola when ordered by customers in mixed drinks. The plaintiff contended that the evidence showed that this practice was going on in such a way that the defendants had or should have had knowledge thereof. The special master held that the burden of proof was on the plaintiff to show that the defendants had knowledge of the substitution and that the evidence as to prevalence of practice before 1942 was unsatisfactory; and the District Court affirmed the finding. The appellant contends that this holding was in error since .the evidence was sufficient for the purpose and since the master placed too great a burden of proof on the plaintiff in holding that actual knowledge by the defendants of the substitution was required, whereas it was sufficient to show that the defendants by the exercise of reasonable care should have known of the illegal practice. Our examination convinces us that there was no error in this respect. The evidence offered was tenuous and it is plain from a reading of all that the master said on the point that he did not exaggerate the burden of proof. Indeed he said expressly that if the practice of substituting the defendants’ product for plaintiff’s in serving mixed drinks had been a general one before 1942, he would have held that a prima facie case of fraud had been made out since the defendants could not shut their eyes to facts which must have been known to them.

(2) The plaintiff contends that the court and the master were wrong in not requir- ■ ing an accounting generally for goods sold under the names of Dixie-Cola and Mar-bert Cola, and in not receiving evidence that after the passage of the interlocutory decree on March 5, 1940, the defendants made use of certain labels, bottle caps and advertising matter'so similar in general effect to the corresponding instrumentalities of the Coca-Cola Company as to deceive the public and lead it to buy defendants’ product in the belief that it was Coca-Cola. After the reference for an accounting the master ordered the defendants to produce yearly statements beginning with the first year in which the defendants’ products were sold and showing the gross receipts from sales of products sold under various names. Included were products sold under names such as Apola Cola, which had been held by the District Court and by this court on appeal to infringe the plaintiff’s trade mark; and also included were products sold as Dixi-Cola, Marbert Cola and Mar-bert the Distinctive Cola, held by this court not to infringe. The District Court held on i-eview of the interim report of the master that an account of the proceeds of sales under noninfringing names should not be required. We think "that this holding was wrong. The decision of this court on the first appeal determined that the mere use of noninfringing names should not be enjoined but approved the injunction of the District Court insofar as it related to fraudulent or deceptive acts in the marking of defendants’ goods under these names. The interlocutory decree was based in part upon findings of fact of the District Judge that the defendants had engaged in certain acts of unfair competition, in that they had induced and encouraged customers to pass off defendants’ products on calls for Coca-Cola 'and also that the distributors of defendants’ products, with .the knowledge of defendants, had sold these products in containers which bore no trade mark or other means of identification, and also in containers which bore the Coca-Cola name, and that defendants and other distributors had sold defendants’ product in refilled containers painted with the distinctive red col- or used by the plaintiff in distributing its product, and that said acts were committed by the defendants with the deliberate intent and purpose of appropriating plaintiff’s good will.

We think that under these holdings the plaintiff was entitled to further relief, if it should be found upon consideration of the evidence that the defendants derived profits from the acts of unfair competition in the use of deceptive materials. See Singer Mfg. Co. v. June Mfg. Co., 163 U.S. 169, 16 S.Ct. 1002, 41 L.Ed. 118; Hiram Walker & Sons v. Grubman, D.C.S. D.N.Y., 222 F. 478; Worcester Brewing Corporation v. Rueter & Co., 1 Cir., 157 F. 217; Walter Baker & Co. v. Slack, 7 [63]*63Cir., 130 F. 514; N.K. Fairbank Co. v. Windsor, C.C.W.D.N.Y., 118 F. 96; Williams v. Mitchell, 7 Cir., 106 F. 168; W. R. Lynn Shoe Co. v. Auburn-Lynn Shoe Co., 100 Me. 461, 62 A. 499, 4 L.R.A.,N.S., 960; 52 Am.Jur., Trademarks, Tradenames and Trade Practices, 147; 63 C.J., TradeMarks, Trade-Names and Unfair Competition, 275 (2) (a). Moreover, we think that the evidence should not be confined to actions which occurred prior to the interlocutory decree on March 5, 1940. The plaintiff presented certain evidence to the master that after that date the defendants engaged in the use of lables, bottle caps and advertising matter of a deceptive nature. The master rejected this evidence since he felt bound by the ruling of the District Court upon his interim report and this ruling was affirmed by the District Court when the final report of the master was considered. It is generally held that in cases of this sort the plaintiff is entitled to recover for the period from the beginning of the fraudulent conduct to the date of the taking of the testimony. G. & C. Merriam Co. v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

THE CADLE CO. VS. WOODS & ERICKSON C/W 63790
2015 NV 15 (Nevada Supreme Court, 2015)
AD Bedell Wholesale Co., Inc. v. Philip Morris, Inc.
104 F. Supp. 2d 501 (W.D. Pennsylvania, 2000)
Mertens v. Hewitt Associates
508 U.S. 248 (Supreme Court, 1993)
Shakespeare Co. v. Silstar Corp. of America, Inc.
802 F. Supp. 1386 (D. South Carolina, 1992)
Getty Petroleum Corp. v. Bartco Petroleum Corp.
858 F.2d 103 (Second Circuit, 1988)
Winslow v. Sadler
16 Va. Cir. 493 (Alexandria County Circuit Court, 1980)
Beals v. Washington International, Inc.
386 A.2d 1156 (Court of Chancery of Delaware, 1978)
Stolz v. Franklin
531 S.W.2d 1 (Supreme Court of Arkansas, 1975)
Gai Audio of New York, Inc. v. Columbia Broadcasting System, Inc.
340 A.2d 736 (Court of Special Appeals of Maryland, 1975)
Larry E. Clark v. Berkeley L. Bunker
453 F.2d 1006 (Ninth Circuit, 1972)
Mortellito v. Nina of California, Inc.
335 F. Supp. 1288 (S.D. New York, 1972)
Creme Lure Co. v. Schwartztrauber
257 F. Supp. 53 (S.D. Iowa, 1966)
Farowitz v. ASSOCIATED MUSICIANS OF GREATER NY, LOCAL 802
241 F. Supp. 895 (S.D. New York, 1965)
I. H. P. Corp. v. 210 Central Park South Corp.
16 A.D.2d 461 (Appellate Division of the Supreme Court of New York, 1962)
Car-Freshner Corporation v. Marlenn Products Company
183 F. Supp. 20 (D. Maryland, 1960)
Orkin Exterminating Co. of So. Fla., Inc. v. Truly Nolen, Inc.
117 So. 2d 419 (District Court of Appeal of Florida, 1960)
American Safety Table Co. v. Schreiber
269 F.2d 255 (Second Circuit, 1959)

Cite This Page — Counsel Stack

Bluebook (online)
155 F.2d 59, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coca-cola-co-v-dixi-cola-laboratories-inc-ca4-1946.