Diamond Drill Contracting Co. v. International Diamond Drill Contracting Co.

179 P. 120, 106 Wash. 72, 1919 Wash. LEXIS 644
CourtWashington Supreme Court
DecidedMarch 10, 1919
DocketNo. 14649
StatusPublished
Cited by21 cases

This text of 179 P. 120 (Diamond Drill Contracting Co. v. International Diamond Drill Contracting Co.) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diamond Drill Contracting Co. v. International Diamond Drill Contracting Co., 179 P. 120, 106 Wash. 72, 1919 Wash. LEXIS 644 (Wash. 1919).

Opinions

Mackintosh, J.

The respondent was incorporated under the laws of the state of Washington in the year [77]*771900, the incorporators being Knight and Stone, who organized their company nnder the name of “Diamond Drill Contracting Company”. The appellant was incorporated nnder the laws of this state in 1913, the incorporators being one Mitchell, his wife, and son, the name nnder which they incorporated being “International Diamond Drill Contracting Company”. The respondent commenced this action, to permanently enjoin the appellant from the nse of the latter name, or any name containing the words “Diamond Drill” or “Diamond Drill Contracting Company”.

For many years prior to 1900, the tool known as the diamond drill had been in nse thronghont the world, the feature which distinguishes the diamond drill from other drills being the use of a cutting surface set with carbon diamonds, the drill being used to secure a core of the rock in the line of the drill hole, this core being brought to the surfa'ce through the drill for examination. Prior to 1900, Knight and Stone had been employed by the Sullivan Machinery Company, which was engaged in the manufacture and sale of mining supplies, among them the diamond drill, and, incidentally, was contracting to drill with diamond drills for different individuals or companies desiring to have their properties prospected. Knight and Stone, leaving the employ of the Sullivan Machinery Company, engaged as partners in the business of drilling by contract with diamond drills for owners of property desiring to have mineral prospecting done by means of drilling. They then incorporated the respondent, ninety-five. per cent of the activity of which is contracting business, the other five per cent consisting of the manufacture and sale of diamond drills. Since 1904 these drills had been known [78]*78as the “double tube return water core barrel drills”, patent for which was issued to Knight and Stone.

The respondent in its business had acquired a reputation for ability and reliability and had paid out large sums of money in advertising its business under the name of “Diamond Drill Contracting Company”, and had become well known in the diamond drill contracting business by the name of “Diamond Drill Contracting Company”. Mitchell for some years had oeen a diamond driller in the employ of the Sullivan Machinery Company and, after leaving that company, had been employed by the respondent for a few months in the year 1911 as a drill foreman. After he had organized the appellant company, it engaged, in Spokane, within a very few blocks of the main office of the respondent, in the diamond drill contracting business. It, also, as a minor portion of its business, engaged in the manufacture and sale of diamond drills of a design similar to that manufactured by the respondent, but made under what is known as the Jenkins’ patent. The„ appellant for sometime conducted its operations with drills manufactured by the respondent and purchased from it; but a few months before the beginning of this action, the appellant began to engage in the manufacture and sale of machines on its own account under the Jenkins’ patent.

At the time of the trial, there were in the United States and Canada some half dozen or more firms or corporations which were taking contracts to drill with diamond drills; but only one or two of these companies, other than the two involved in this litigation, included in their names the words “Diamond Drill Contracting Company,” one company so doing being the Smith & Travers Diamond Drill Contracting Com[79]*79pany, of Canada. Respondent predicates its right to enjoin the nse of the words “Diamond Drill Contracting Company”, first, npon section 3680, Rem. Code; and, second, upon the fact which it alleges that the name “Diamond Drill Contracting Company” had acquired a secondary meaning, and respondent had therefore a right to its exclusive use as a trade-name, and should he protected from the use of a similar and misleading name by the appellant.

Section 3680, Rem. Code, reads, so far as material to this controversy, as follows:

“No corporation shall take the name of a corporation theretofore organized under the laws of this state, nor . . . one so nearly resembling the name of such other corporation as to be misleading. The secretary of state shall refuse to file said articles of incorporation of any association or corporation violating the provisions of this section.”

The secretary of state, having accepted the filing of the articles of appellant, has exercised his discretion and determined that the two names are not misleading. The appellant argues therefrom that the respondent is bound by that determination, and in this action cannot collaterally attack the action of the secretary of state, and that such action can only be reviewed in a direct proceeding, and then only for mistake, abuse, or want of jurisdiction; and if there was ground for an honest difference of opinion, the secretary of state, having exercised his judgment, that exercise cannot be here reviewed. State ex rel. Megler v. Forrest, 13 Wash. 268, 43 Pac. 51.

It is probably true that the action of the secretary of state in allowing the filing of the appellant’s articles cannot be brought into question in this proceeding; and, in a direct action against the secretary of state for the purpose of securing the cancellation [80]*80of such, filing, the court would not interfere with the exercise of his discretion; for, as we said in State ex rel. Progressive Motion Picture Co. v. Howell, 96 Wash. 163, 164 Pac. 917:

“It may also be true that had the names of these corporations, instead of being exactly alike, only resembled each other with a difference such as to furnish room for an honest difference of opinion as to whether they so resembled each other ‘as to be misleading,’ thus presenting a question for the exercise of judgment on the part of the secretary for decision, we would not award relator relief by mandamus.”

But this view of the action of the secretary of state does not exclude the consideration of the other phase of § 3680, which provides that no corporation shall take the name of a corporation theretofore existing, nor a name so closely resembling the name of such other corporation as to be misleading. In other words, the section provides that no corporation shall take a misleading name, and that the secretary of state shall not allow the filing of the articles of incorporation of such company. As we have said, we cannot, in this action, interfere with the filing which has already taken place; but if the second company has taken the •name of a corporation theretofore existing or taken a name which is so similar thereto as to be misleading, we can prevent, in this action, the second company from continuing to use such name. Grand Lodge A. O. U. W. v. Graham, 96 Iowa 592, 65 N. W. 837, 31 L. R. A. 133; Society of the War of 1812 v. Society of the War of 1812, etc., 46 App. Div. 568, 62 N. Y. Supp. 355; Edison Storage Battery Co. v. Edison Automobile Co. etc., 67 N. J. Eq. 44, 56 Atl. 861.

This presents to us a question of fact as to whether the prefixing of the word “International” to the name theretofore used by the respondent is the adoption [81]*81by tbe respondent of a name “so clearly resembling tbe name of” the respondent “as to be misleading”. It may be tbat tbe use of these two names would result in some confusion.

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Cite This Page — Counsel Stack

Bluebook (online)
179 P. 120, 106 Wash. 72, 1919 Wash. LEXIS 644, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diamond-drill-contracting-co-v-international-diamond-drill-contracting-wash-1919.