HML Corp. v. General Foods Corp.

236 F. Supp. 719, 1965 U.S. Dist. LEXIS 9693
CourtDistrict Court, E.D. Pennsylvania
DecidedJanuary 6, 1965
DocketCiv. A. No. 30735
StatusPublished

This text of 236 F. Supp. 719 (HML Corp. v. General Foods Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
HML Corp. v. General Foods Corp., 236 F. Supp. 719, 1965 U.S. Dist. LEXIS 9693 (E.D. Pa. 1965).

Opinion

WOOD, District Judge.

This contract action was tried to the Court without a jury from December 7, 1964, to December 10, 1964. At the close of the plaintiff’s evidence the defendant moved for an involuntary dismissal under Rule 41(b) which was granted by the Court. Therefore, in accordance with Rule 52(a) we find the following:

FINDINGS OF FACT

1. The plaintiff, HML Corporation (HML) (formerly Lamaze Foods, Inc.) is a Pennsylvania corporation with its principal place of business located in Philadelphia, Pennsylvania.

2. At the time of the institution of suit, January 5, 1962, HML was a food manufacturer.

3. The defendant, General Foods Corporation (General Foods) is a Delaware Corporation with its principal place of business situated in White Plains, New York.

4. The amount in controversy exceeds $10,000.00.

5. Plaintiff’s predecessor corporation prior to 1956 was the owner and registrant of the trademarks “Cream Wipt” and “SalaDream” covering certain food dressing products.

6. In 1956 and 1957, General Foods adopted and used the trademark “Dream Whip” which was a dessert topping mix.

7. Litigation arose when the defendant attempted to register the trademark “Dream Whip” with the United States Patent Office in 1956 and 1957.

8. The plaintiff successfully opposed the defendant’s application to register its trademark because- of the likelihood [721]*721that confusion in the trade would result. Cream Wipt Foods, Inc. v. General Foods Corporation, 278 F.2d 521, 47 CCPA 968 (1960).

9. Thereafter, on September 14, 1960, plaintiff and defendant entered into two agreements to resolve the trademark dispute between them.

10. The first agreement denominated herein as the “Main Agreement”, provided for the sale by the plaintiff to General Foods of the trademarks “Cream Wipt” and “SalaDream” together with the good will of those trademarks and United States Patent No. 2,715,068 owned by plaintiff’s president covering the production of a salad dressing containing milk solids and cream.

11. Section 10 of the Main Agreement provided for a closing date of October 31, 1960.

12. On or before the closing date General Foods paid $100,000 to the plaintiff' for the transfer of the trademarks and $150,000 to plaintiff’s president, Harry M. Levin (Levin) for transfer of the patent.

13. The recital clauses of the Main Agreement specifically state that the basis of the Agreement was to settle the trademark dispute and to permit General Foods to continue its use of the trademark “Dream Whip.”

14. Section 7 of the Main Agreement states that the parties will “execute in good faith a mutually satisfactory agreement for the supply to General Foods by Wipt of said food dressing products.”

15. Section 19(d) (ii) of the Main Agreement entitled “Conditions” recites that General Foods’ obligations are subject, to the receipt by General Foods, at the time of closing, of an executed supply agreement as provided in Section 7.

16. Section 22 of the Main Agreement restricts the entire agreement of the parties to the written instrument and provides that modifications, alterations or changes must be in writing.

17. The second agreement, known as the “Supply Agreement”, provided that General Foods would order from the plaintiff not less than 85% of General Foods’ requirements in a specific geographic region for certain food dressing products previously manufactured and processed by the plaintiff.

18. Section 22, subsections (a) and (b) of the Supply Agreement provided that the written instrument constituted the whole agreement between the parties and that no representations or statements were made by officers or representatives of General Foods which would “add to, modify, or change any one or more of the provisions of this agreement.” Also, any enlargement or modification of the agreement had to be in writing to be effective.

19. The Main Agreement and Supply Agreement were executed by the plaintiff’s President, Levin and E. W. Kelley, Treasurer of General Foods, on September 14, 1960, and both agreements went into effect on October 31, 1960.

20. After both agreements had been signed on September 14, 1960, Levin discovered two errors relating to processing charges in the written instruments which were corrected at his request by an amendment dated October 28, 1960.

21. Other than the two errors discovered by Mr. Levin, no other oral or written additions, changes or modifications were made by the parties before or after the closing date, October 31, 1960.

22. There is no written provision in either agreement obligating General Foods to promote, sell or expand the market for the food dressing products covered by the Supply Agreement.

23. Levin knew before the two agreements were executed that General Foods intended to proceed cautiously with the marketing of the food dressing products, and that General Foods intended to conduct marketing investigations and surveys concerning the food dressing products.

[722]*72224. Following the closing date, on November 1 and 2, 1960, six representatives of General Foods visited the plaintiff’s plant to familiarize themselves with the plaintiff’s method of manufacturing, and to evaluate the products to be sold by General Foods.

25. Samples of the plaintiff’s products were taken by Mr. Feldman, a General Foods employee, for use in making tests by the defendant.

26. Mr. Whitcomb, a General Foods employee, visited the plaintiff’s factory on at least six occasions between November and December, 1960, and discussed with Levin the experimentation ánd research being conducted by General Foods.

27. Plaintiff’s attorney, Mr. Denny, with Levin’s permission, was consulted by General Foods in connection with consumer research being conducted by the defendant, and wrote to General Foods with regard thereto.

28. General Foods appointed five brokers, in Philadelphia, Pittsburgh, Erie, Baltimore, and New York to handle the sale of the food dressing products covered by the Supply Agreement, and advised the plaintiff accordingly.

29. Sample cases, pictures and slides were prepared by the defendant for use in promoting the food dressing products.

30. General Foods reimbursed the plaintiff for certain advertising costs which the plaintiff incurred pursuant to contracts in effect on November 1, 1960, until December 31, 1960.

31. Mr. Whitcomb of General Foods called on the trade in Pittsburgh, Pennsylvania, to encourage customers to sell the food dressing products.

32. On February 17, 1961, W. Parlin Lillard, Vice President of General Foods, notified the plaintiff orally and in writing that General Foods had decided to discontinue the sale of the food dressing products covered by the Supply Agreement.

33. In a letter dated February 17, 1961, addressed to Levin, Mr.

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Cream Wipt Foods, Inc. v. General Foods Corporation
278 F.2d 521 (Customs and Patent Appeals, 1960)
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7 F.2d 628 (E.D. New York, 1925)
Rubinger v. International Telephone & Telegraph Corp.
193 F. Supp. 711 (S.D. New York, 1961)
Imperial Meat Co. v. United States
375 U.S. 820 (Supreme Court, 1963)

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Bluebook (online)
236 F. Supp. 719, 1965 U.S. Dist. LEXIS 9693, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hml-corp-v-general-foods-corp-paed-1965.