Dixieland Food Stores, Inc. v. Kelly's Big Star, Inc.

391 So. 2d 633, 1980 Miss. LEXIS 2156
Procedural entryThis page is a short order in Dixieland Food Stores, Inc. v. Kelly's Big Star, Inc.. Read the opinion of the Court — 1980 Miss. LEXIS 2011
Mississippi Supreme Court·Decided November 26, 1980·No. No. 51934·Published

Opinion

WALKER, Justice,

for the Court:

This is a suit for damages alleged to have been sustained by Kelly’s Big Star, Inc., a food store, because of an alleged campaign of unfair competition by false advertising conducted by Dixieland Food Stores, Inc., through its employees, Charles E. Kervin and Phillip Skinner. Another defendant named in the suit Benson Wholesale, Inc., was granted a directed verdict at the end of the plaintiffs’ case. The case against the remaining defendants was submitted to a jury in the Circuit Court of Smith County, resulting in a verdict and judgment for Kelly’s Big Star in the amount of $250,000. We reverse and render.

For the purposes of the opinion, the defendants will be referred to as Piggly Wiggly. Big Star sued Piggly Wiggly for damages alleged to have resulted from untrue misleading and deceptive advertisements published by Piggly Wiggly in violation of Mississippi Code Annotated section 97-23-3 (1972), which reads as follows:

Any person who, with intent to sell or in any way dispose of merchandise, secu[634] rities, service, or anything offered by such person, directly or indirectly, to the public for sale or distribution, or who, with intent to increase the consumption of or demand for such merchandise, securities, service or other thing, or to induce the public in any manner to enter into any obligation relating thereto, or to acquire title thereto, or an interest therein, makes, publishes, disseminates, circulates or places before the public, or causes, directly or indirectly, to be made, published, disseminated, circulated or placed before the public within the state, in a newspaper or other publication, or in the form of a book, notice, handbill, poster, bill, circular, pamphlet or letter, or by a label affixed to the merchandise or its container, or in any other way, an advertisement of any sort regarding merchandise, securities, service or anything so offered to the public, which advertisement contains any assertion, representation or statement of fact which is untrue, deceptive or misleading, including but not limited to representing himself as selling at wholesale unless he is actually selling at wholesale those items so represented, and which such person knew, or might on reasonable investigation have ascertained to be untrue, deceptive or misleading, shall be punished by a fine of not more than five hundred dollars ($500.00), and the offending person, whether found guilty or not, may be held civilly responsible in tort for damages to persons or property proximately resulting from a violation of this section. This section shall not apply to any owner, publisher, printer, agent or employee of a newspaper or other publication, periodical or circular, or to any agent of the advertiser who in good faith and without knowledge of the falsity or deceptive character thereof publishes, causes to be published, or participates in the publication of such advertisement. Firms with the word “wholesale” in their corporate title are not in violation of this section so long as they identify the sales as being made by their retail division.

In 1977 Big Star and Piggly Wiggly were the only large grocery stores in Taylorsville, and their quest for the local grocery business was highly competitive. Big Star had been running an advertisement in the Tay-lorsville Signal, which ad stated, “Why pay more!! Check our Prices first!!” Phillip Skinner, the manager of the Taylorsville’s Piggly Wiggly Store, decided to check Big Star’s prices to see if they were really any lower. After checking the prices of certain name brand goods carried by both stores, Skinner obtained permission from his supervisors to prepare a comparative advertisement setting forth the difference in prices.

Before making the price comparison, Skinner hired the services of Mr. P. A. Cockrell, a notary public, for the purpose of attesting to the accuracy of the price comparison. Cockrell then accompanied an employee of Piggly Wiggly, who purchased 172 name-brand items at both the Big Star and Piggly Wiggly stores in Taylorsville. Skinner then ran an advertisement in the Tay-lorsville Signal listing all 172 items and the prices charged by both stores. Of the 172 items listed, Piggly Wiggly’s prices were lower on 171 items.

Big Star does not challenge the accuracy of the prices or the price difference of the 172 items bought and compared, except for three arguable discrepancies making a total difference of 2OV2 cents. On the stand even Mr. Robert Kelly, the owner of Kelly’s Big Star, admitted that out of 172 items such a slight discrepancy was pretty accurate printing. There is no testimony that indicates this minor discrepancy was intentional, and there was some testimony that the error may have been on the part of Big Star’s own cashier. The advertisement Pig-gly Wiggly ran indicated that the price difference of the 172 items totalled $21.45. This affidavit prepared by Mr. Cockrell indicated that the total of the purchases made at Big Star was in the amount of $244.18. The affidavit indicated that the same items at Piggly Wiggly sold for $223.11, or a difference of $21.07 less at Piggly Wiggly.

When the advertisement was prepared, there was placed in the bottom right-hand [635] corner in an inconspicuous manner, and covering a minimal amount of the total area of the full page advertisement, an attestation which read as follows: “Products listed above were purchased and compared on week ending October 15 by P. A. Cockrell, Notary Public, at Taylorsville Piggly Wiggly and Big Star. The items are on display at Piggly Wiggly for varification (sic).”

Big Star took exception to this portion of the advertisement contending it was not accurate in that Mr. Cockrell did not, in fact, “purchase” the merchandise from Big Star, but only accompanied and observed a Piggly Wiggly employee who made the actual purchases. Upon receipt of this objection, Piggly Wiggly revised the next printing of the advertisement to more accurately read: “Products listed above were purchased and compared on week ending October 15, 1977. The transactions by Piggly Wiggly were supervised, compared and notarized by P. A. Cockrell, Notary Public at Taylorsville Piggly Wiggly and Big Star. The items are on display at Taylorsville Piggly Wiggly for varification (sic).”

Although this ad more accurately reflected the role of Mr. Cockrell, Big Star nevertheless objected to it and demanded a complete retraction of the ad. The Piggly Wiggly manager again conferred with his attorney, who advised him that the advertisement was accurate and there was no need for any further change. However, he did suggest an alternative advertisement should Piggly Wiggly desire to change it. Piggly Wiggly, in an attempt to satisfy Big Star, revised the next printing of the advertisement to reflect the changes made in the previous two ads. The second revised advertisement reflected that the purchases were made in the presence of a notary public and that a notarized statement of the accuracy of the purchases and comparisons, along with the actual tapes on purchased products, was available upon request at the Taylorsville Piggly Wiggly. This advertisement, in essentially the same form was printed in three successive editions of the Taylorsville Signal.

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Dixieland Food Stores, Inc. v. Kelly's Big Star, Inc., 391 So. 2d 633, 1980 Miss. LEXIS 2156 (Mich. 1980).

391 So. 2d 633 (Dixieland Food Stores, Inc. v. Kelly's Big Star, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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