Holmes, Booth & Haydens v. Holmes, Booth & Atwood Manufacturing Co.

37 Conn. 278
CourtSupreme Court of Connecticut
DecidedSeptember 15, 1870
StatusPublished
Cited by86 cases

This text of 37 Conn. 278 (Holmes, Booth & Haydens v. Holmes, Booth & Atwood Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmes, Booth & Haydens v. Holmes, Booth & Atwood Manufacturing Co., 37 Conn. 278 (Colo. 1870).

Opinion

Carpenter, J.

In 1853 the plaintiff corporation was organized under the joint stock laws of this state, taking the name of four of its principal corporators or promoters. Two of these, Israel Holmes and John C. Booth, whose names appear in the corporate title, by long experience had acquired considerable skill and reputation in the manufacture of brass, the business for which the corporation was organized. Thus organized, the corporation established and carried on a successful business, and their corporate name acquired a valuable reputation in the public markets of the country. There were but five original stockholders. The amount of the capital stock, and the number of shares owned by each, do not appear ; but at the time of the organization of the defendant corporation, February 9th, 1869, the stock consisted of six-icon thousand shares, distributed among fifty-one stockholders. Six of the eight corporators in the new corporation were stockholders in the old, and four of them were directors, one of whom was president until a short time before. The respondents organized under the corporate title of “ The Holmes, Booth & Atwood Manufacturing Company,” for the purpose of carrying on, and carried on, the same business as that dono hjr the petitioners.

Their place of business was in the same town, and their depots in Now York and Boston were in the same streets. The similarity of the names of the two companies resulted in confusion of their correspondence, mistakes in tire delivery of orders, goods, &c., and it is expressly found that, “ by reason of this similarity, dealers in the market are likely to be confused and misled into the belief that the companies are ihc same.” Other facts of less importance appear, but the above embraces all the material facts in the case.

Upon these facts the petitioners pray that the respondents may be restrained from the use of their corporate name, also [292]*292from using the words “Holmes, Booth,” or the words “ Holmes” or “ Booth,” in the name, title, or style of the corporation, or any words or titles so expressed as to be in any degree an imitation of the corporate name of the petitioners.

The petitioners insist that if the respondents are permitted to continue their business as heretofore, their goods will be sold in market as the goods of the petitioners. This claim is not seriously controverted, and we think it is a fair inference from the facts found. That any name, symbol or device, adopted by an individual, corporation or business firm, for the purpose of designating the origin and ownership of goods manufactured by them, will be protected as a trade-mark is well settled law. The name of a corporation or partnership, accomplishing the same object, will be protected upon the same principle. This is not disputed. Indeed the respondents seem to admit that the petitioners are entitled to the relief sought, unless they can protect themselves in the use of their corporate name on one of three several grounds.

1. That the petitioners, having taken their name from some of their principal stockholders, could acquire no exclusive right to the use of that name as against another corporation, subsequently formed, embracing those same stockholders.

2. That there is no actual fraud found, and no purpose or intention on the part of the respondents to use their name to the prejudice of the petitioners.

8. That the petitioners’ name is itself a misrepresentation, and calculated to deceive the trade.

The case will be considered with reference to these objections.

1. In respect to the names.

The argument of the respondents’ counsel upon this point proves too much. If sound it would establish the proposition that if the Haydens, or one of them, had united in forming the respondent corporation, they might have taken the petitioners’ name verlatim, and the petitioners would have had no legal ground of complaint. Indeed this result is necessarily involved in the statement of the proposition. [293]*293Such a claim, in terms, certainly would not be seriously made. There can be no distinction in principle between talcing the entire name and so much of it as will mislead dealers into the belief that the two corporations are the same. The mischief in both cases is of precisely the same character, differing only in degree.

It will be well to observe that, the controversy in this case is between two corporations. Each party owes its existence to the law. The law authorizes, sanctions, and protects every act done, and every step taken, in pursuance of law, either in the process of organization, or in the course of its business. It is true all the details are not prescribed in advance. Certain general powers are conferred, which are applicable alike to all corporations ; such as the power to hold property, to sue and be sued, and the like. So also of certain requisites and forms, such as the par value of each share of stock, the publication of notice, and recording the articles of association, &c. Other powers and privileges are left in a measure to the discretion of the parties interested. Among these are the amount of capital stock, the location, the business to be transacted, and the name. When the corporators have once exercised their power in respect to these matters, the law declares the capital stock, the location, the business, and the name, to be as thus determined, until changed in pursuance of law. In respect to these matters the corporation is as much the creature of, and subject to, and protected by, the law, as in the former.

The law having authorized the selection of a name, and having declared the name so selected to be the name of the corporation, we see no reason why the law should not protect the corporation in the use of that name, upon the same principle, and to the same extent, that individuals are protected in the use of trade-marks. Hence it necessarily follows that corporations in -the exercise of discretionary powers conferred by the statute, must so exercise them as not to infringe upon the established legal rights of others.

But it is contended, conceding that if John Boe and Richard Roe had formed the defendant corporation they would [294]*294have had no right to use the petitioners’ name, that the petitioners, by incorporating into their name the names of some of the principal corporators, have forfeited their right to this •protection, for the reason that t^ey coul* not thereby so absorb the names of Israel Holmes aj-id?John C. Booth as to prevent them from imparting the right to use their names to any other corporation or business_firm with which' they might become connected. We state the claim in this form because, as it seems to us, in this form only has it any application to the present case. We do not wish to be understood as deciding that the respondents may not, in any legitimate way, indicate to the trade that their business had the benefit of the experience, skill and reputation of these gentlemen. But the simple question is, have they^a rigid to do it by a substantial use of the petitioners’ name ?^Yln answering this question we shall answer that Mr. Holmes and Mr. Booth, in the first instance, had a perfect right to prohibit the use of their names by the petitioners. If so, presumptively at least, they assented to such use. T-he^ subscribed to the capital stock with the knowledge, if not upon the condition, that the corporation would thus hold out to' the world that their skill and experience were involved'in the enterprise.

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Bluebook (online)
37 Conn. 278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-booth-haydens-v-holmes-booth-atwood-manufacturing-co-conn-1870.