Grills v. Miller

75 N.E.2d 737, 322 Mass. 21, 76 U.S.P.Q. (BNA) 240, 1947 Mass. LEXIS 726
CourtMassachusetts Supreme Judicial Court
DecidedNovember 24, 1947
StatusPublished
Cited by3 cases

This text of 75 N.E.2d 737 (Grills v. Miller) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grills v. Miller, 75 N.E.2d 737, 322 Mass. 21, 76 U.S.P.Q. (BNA) 240, 1947 Mass. LEXIS 726 (Mass. 1947).

Opinion

Qua, C.J.

This suit in equity arises out of a contract entered into between the plaintiff and the defendant Miller, hereinafter called the defendant, under date of May 27, 1943, by which the plaintiff was to have for a term of ten years (and for a further term of ten years, unless he should give notice of his intention not to continue) the sole and exclusive right to sell and distribute skin “creams” manu-factored by the defendant, including a product later bearing the trade mark “Sealskin,” designed to protect the skins of persons employed in industry.

The bill alleges breaches of the contract by the defendant and that the defendant has appropriated to his own use a quantity of cartons furnished by the plaintiff to be used exclusively on products to be sold by the plaintiff, and asserts that the plaintiff is the sole owner of the name “Sealskin.”

The prayers are for an accounting, that the contract be cancelled, that the defendant be ordered “to transfer and assign all of his rights in the trade mark ‘Sealskin’” to the plaintiff, and for injunctive relief and damages. The defendant by counterclaim alleges breaches of the contract by the plaintiff for which he claims compensation.

The facts appear from the report of a master, which was confirmed by interlocutory decree. A final decree was entered charging the defendant with a sum of money as due upon an accounting and with the value of the cartons, and granting to the plaintiff substantially the relief prayed for with respect to the trade mark. The defendant appeals from both decrees, but as he has not argued his exceptions to the master’s report, we deem them to have been waived.

[24]*24The defendant was a manufacturer of certain types of skin “creams.” The plaintiff was engaged in “sales promotion.” By the terms of the contract the defendant, in addition to granting to the plaintiff the exclusive right of sale hereinbefore mentioned (with an exception not now material), agreed to deliver to the plaintiff or to persons designated by him all of said products required by him at specified prices, a certain percentage of which was to be credited to the plaintiff’s account to meet payments made by the plaintiff for advertising and promotion costs, to package said products, to label the same in accordance with written instructions from the plaintiff, to turn them over to transportation agencies for delivery to persons designated by the plaintiff, not to sell to any person other than the plaintiff, and to send the bills to the plaintiff only. The plaintiff agreed to cause advertising matter to be printed and distributed, to “devote his entire time and attention and to use his best endeavors to the business of selling” the defendant’s products, and guaranteed “a minimum quota of shipments of 4000 gross yearly.” Both parties agreed to keep proper accounts and to make adjustments monthly.

Immediately upon executing the contract the parties began operating under it. The plaintiff instituted an extensive advertising campaign and established distributors in every State in the United States and some in Canada. The defendant made shipments to the plaintiff or to persons designated by him and in either case billed the plaintiff for the goods. The plaintiff collected from the purchasers and remitted to the defendant according to the contract. In July or August, 1943, the plaintiff became convinced that the “beauty trade” offered a large field for the defendant’s product, but felt that in this field a new name must be devised for the product. At a conference between the parties the plaintiff, without help from the defendant, thought of and suggested the name “Sealskin,” to which the defendant agreed. Thereupon the plaintiff prepared a new label using that name and advertised extensively and sold large quantities of the product under that label. The name became [25]*25well and favorably known to the “beauty trade” and “has considerable value in that connection.” The plaintiff had no formula for the manufacture of the product and never manufactured any. It does not appear, however, that the manufacture was a secret process known only to the defendant or that “creams” similar for all practical purposes to “Sealskin” were not readily obtainable in the market.

The defendant in violation of his contract made many direct sales to dealers, collected for such sales, and failed to account to the plaintiff for the collections. On the other hand, the plaintiff by false representations induced the defendant to make a special low price for a supposedly large purchaser, who was not in fact a purchaser at all. The plaintiff himself took over goods consigned to this supposed purchaser and sold them at the regular rates, keeping the difference, and thus defrauding the defendant of substantial sums. As a result of these breaches by both parties a conference was held in September, 1945, at which each party accused the other of the respective breaches above mentioned, and at which they finally “mutually agreed to forget their grievances and to continue to operate under the written contract.” Again, however, each broke the contract. The plaintiff broke it by devoting substantial amounts of his time during practically all of the remainder of the period during which the parties attempted to operate under the contract to one or the other of two corporations from which he received substantial payments for his services. He gave up the office he had previously maintained for the sale of the defendant’s products and took up quarters in the office of one of these corporations. This was in violation of his promise to devote his entire time and attention to the selling of the defendant’s product. The defendant on his part broke the contract by continuing to make direct sales to customers for which he collected but did not account. He also made a fraudulent conveyance to prevent the plaintiff from collecting in this suit, and he introduced in evidence at the hearings before the master documents which the master finds he had fraudulently [26]*26altered. The master finds that “In May of 1946 the plaintiff and the defendant ceased operations under the contract.” Neither party now makes any claim under the contract for any period after that time. A finding of the master that neither party is entitled to damages against the other has gone unchallenged and must stand. We interpret this in its context to refer to unliquidated damages as for breach of contract and not to any balance that might be found due upon an accounting.

It appears to us that neither the plaintiff nor the defendant is in a position to insist in a court of equity upon an accounting against the other. Even if we assume that the agreement of the parties in September, 1945, to forget their grievances and to continue to operate under the contract amounted to mutual releases of whatever claims then existed by either against the other, both parties thereafter continued in a course of deliberate and intentionally wrongful conduct. No excuse is suggested for the plaintiff’s course of action in devoting his time and effort to other enterprises. That course deprived the defendant of the plaintiff’s undivided attention for which the defendant had expressly stipulated and may well have caused loss, the amount of which is not susceptible of proof, in respect to the very matters in relation to which the plaintiff now calls for an accounting. None of the circumstances which led the court to grant relief to the plaintiff in Walsh v. Atlantic Research Associates, Inc. 321 Mass. 57, 65-66, is present here.

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Cite This Page — Counsel Stack

Bluebook (online)
75 N.E.2d 737, 322 Mass. 21, 76 U.S.P.Q. (BNA) 240, 1947 Mass. LEXIS 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grills-v-miller-mass-1947.