Crown Overall Manufacturing Co. v. Levy Overall Manufacturing Co.

16 Ohio N.P. (n.s.) 561, 25 Ohio Dec. 439, 1914 Ohio Misc. LEXIS 44
CourtOhio Superior Court, Cincinnati
DecidedDecember 5, 1914
StatusPublished

This text of 16 Ohio N.P. (n.s.) 561 (Crown Overall Manufacturing Co. v. Levy Overall Manufacturing Co.) is published on Counsel Stack Legal Research, covering Ohio Superior Court, Cincinnati primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crown Overall Manufacturing Co. v. Levy Overall Manufacturing Co., 16 Ohio N.P. (n.s.) 561, 25 Ohio Dec. 439, 1914 Ohio Misc. LEXIS 44 (Ohio Super. Ct. 1914).

Opinion

Oppenheimer, J.

About eleven years ago Oscar Berman and Samuel Levy formed a partnership under the firm name of Berman & Levy [562]*562for the manufacture and sale of overalls. The business, which was generally conducted under the name of the Crown Overall Company, grew apace, until during the year 1913 the gross sales aggregated nearly $1,000,000. On or about the 20th day of December, 1913, the partnership was dissolved by mutual consent, Berman buying the interest of Levy, and paying therefor the sum of $115,000. Of this sum $15,000 was understood to represent the value of Levy’s interest in the good-will, and the bill of sale which was executed by Levy at that time recited that he conveyed to Berman “the good-will of said partnership and all other property and assets of every kind and nature whatsoever. ’ ’ The sum of $15,000 was paid to Levy in cash at the time of the transfer, and the balance of $100,000 was, by agreement, to be paid in weekly installments of $2,000 each, and was evidenced by notes which were to be secured by stock in a new corporation to be organized by Berman. Shortly after the transfer was made, the plaintiff company was organized by Berman, who transferred to it all the property and good-will owned and acquired by him. In consideration of such transfer, Berman received stock of the plaintiff corporation, which he now holds.

Some time thereafter Levy organized the defendant corporation, with himself as president and chief stock-holder, and this corporation is now engaged in the same business as that in which plaintiff corporation has been engaged.

The firm of Berman & Levy had, during practically all of its existence, employed three methods of soliciting business. The first method was that of sending to various retail dealers in the western part of the country samples which were to be paid for if retained by them. The second method was that of solicitation through traveling salesmen in the states of the Mississippi valley. The third method was that of sending advertising matter to proposed customers. These methods of securing business were followed by the plaintiff corporation. Shortly after the defendant corporation was organized, the same methods of solicitation were adopted by it. The principal question which is [563]*563now presented to us for our consideration concerns defendant’s right, by the methods thus indicated, to solicit customers of the old firm of Berman & Levy. Before answering this question, it will be well to review a portion of the testimony with a view to determining whether defendant’s methods were those of fair, legitimate competition, or of deliberate, wilful and improper interference.

Among plaintiff’s employees was one Harry IToemmelle, who had been employed as a draughtsman and cutter for more than five years. ILe was induced by defendant Levy to leave plaintiff’s employ and to enter the employ of defendant. Various witnesses testify that prior to the time when he severed his connection with plaintiff’s company, he made measures of patterns belonging to it, and noted these measurements in a memorandum book which he retained in his possession. Iloemmelle did not take the witness stand to deny these allegations. The result of his work is apparent from the fact that the overalls produced by the defendant company and designed by ITommelle are in manifest imitation of plaintiff’s product. It is quite true that the designs for these overalls are neither copyrighted nor patented, nor is it contended that defendant may not produce overalls which are similar in appearance to those which are manufactured by plaintiff. But the fact of conscious and deliberate imitation is a circumstance which reflects pertinently upon the fairness of defendant’s competition, when samples are sent directly to those who must have been known to defendant to be customers of plaintiff. Moreover, the testimony indicates that when defendant desired to have circulars printed for advertising purposes, it sent for the printer who had originally furnished the circulars used by the old concern, and made inquiry concerning the prices of circulars substantially like those which were used by plaintiff. And the circulars which were ultimately prepared for defendant’s use were similar in all respects to those which plaintiff had used. There could not have been even as much excuse for this as for the imitation of overalls, for manifestly no economy was effected by such simulation excepting in mental effort.

[564]*564The testimony further shows that printed order blanks were sent out with the circulars. In the printing of these blanks, the very electrotypes which had been bought, paid for and used by plaintiff, were, at defendant’s request, employed by the printer. No more patent effort to appropriate the fruits of another’s brain can be conceived. Levy’s explanation that he himself had assisted in preparing these order blanks, is answered by the statement that so far as they had become the property of the old firm of Berman & Levy, he had parted with all rights in them, and received compensation therefor. He can scarcely be permitted both to “eat his cake and have it too.”

The impression which defendant desired to convey to plaintiff’s customers to whom such samples and printed matter were sent, can readily be conceived. Defendant, however, contends that there was no misrepresentation that it had succeeded to plaintiff’s business and no imitation of the buttons, tickets or other marks upon the overalls. The truth of such contention is more apparent than real. The lot numbers employed by' defendant were in most cases similar to or identical with the lot numbers which plaintiff had continuously used. The garment tickets which were attached to the overalls made by defendant are suspiciously similar in color to those employed by plaintiff to designate lots of similar numbers. It is more than passing strange that with all the colors of the rainbow from which to choose, defendant should have selected blue, or a combination of blue and red, for tickets to place upon overalls strikingly similar to plaintiff’s product upon which tickets of the same color were used. And when all these facts are considered in connection with the subscription of Samuel Levy’s name to letters which -were sent to former customers of plaintiff, the conclusion is inevitable that a studious effort was being made to induce the belief that defendant’s overalls were proper substitutes for those ■ previously made and sold by plaintiff and by the firm of Berman & Levy. We are aware that under present economic conditions it is the purpose of the law to foster competition. Acting upon this principle [565]*565Congress has enacted the Sherman Anti-Trust law, and the General Assembly of this state has passed the Valentine act. But the competition thus fostered and encouraged must be legitimate. With the unfolding of our social conscience, the ethical standard in the business world is being elevated.

We are demanding honesty of method and integrity of purpose in our industrial life. Misrepresentation and fraud elicit public condemnation. One who seeks to gain the confidence of the people must offer as a foundation for such confidence the merit of his own product and the honesty of his own methods. He can not in good conscience offer as his own that which he has not himself produced and which he has obtained by unconscionable means from those whose wares he seeks to displace. He can not reap where he has not sown, nor earn his profits in the sweat of another’s brow.

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Bluebook (online)
16 Ohio N.P. (n.s.) 561, 25 Ohio Dec. 439, 1914 Ohio Misc. LEXIS 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crown-overall-manufacturing-co-v-levy-overall-manufacturing-co-ohsuperctcinci-1914.