Humble Oil & Refining Co. v. American Oil Co.

259 F. Supp. 559, 151 U.S.P.Q. (BNA) 266, 1966 U.S. Dist. LEXIS 8309
District Court, E.D. Missouri·Decided September 29, 1966·No. No. 63 C 251(2)·Published·Cited by 5 cases

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

MEREDITH, District Judge.

This proceeding was brought under and pursuant to Rule 60(b) of the Federal Rules of Civil Procedure to modify an injunction decree of this Court entered in 1937 in case No. 11407, which was affirmed on appeal in Esso, Inc. v. Standard Oil Co. (Indiana), 98 F.2d 1 (8 Cir. 1938). Under the 1937 decree “Esso, Incorporated, its agents, servants, representatives, employees, attorneys, confed[560] erates, and all others acting for, with, through or under it and each of them,” were perpetually enjoined from using in the .petroleum industry in the States of Colorado, Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Montana, North Dakota, Oklahoma, South Dakota, Wisconsin and Wyoming “the term Esso alone or in combination with other names, terms, letters, marks, symbols, or syllables,” or the trade names or trademarks Standard, Standard Oil, Standard Oil Company, S O, or S O C O, or “any names, terms, marks or symbols colorably similar thereto in sound, appearance, significance of meaning.”

Plaintiffs in this proceeding are Humble Oil & Refining Company, a Delaware corporation (herein called Humble), Esso, Inc., a corporation, and Standard Oil Company, a New Jersey Corporation (herein called Standard Oil [New Jersey] ). Humble is wholly owned by Standard Oil (New Jersey), and Esso, Inc., is wholly owned by Humble. Esso, Inc., was a defendant in the 1937 case.

Defendants in this proceeding are The American Oil Company, a Maryland corporation (herein called American), and Standard Oil Company, an Indiana corporation (herein called Standard Oil [Indiana]), which owns all of the capital stock of American. Standard Oil (Indiana) was the plaintiff in the 1937 case and obtained the above-mentioned injunction.

Plaintiffs herein seek to modify the 1937 injunction to permit Humble to use the name and mark “Esso” in the petroleum industry in the fourteen midwest states covered by the decree and in the State of Nebraska. Following the entry of the 1937 injunction, Standard Oil (Indiana) began marketing in Nebraska. These fifteen states are hereafter referred to as the midwest.

Plaintiff Humble is now the owner of record of the federal registration of the trademark “Esso”. Plaintiff is prohibited from using it in the midwest by virtue of the 1937 decree.

To understand the problems of this litigation, a brief history of the Standard Oil Company is necessary. The Standard Oil trust began in 1870. By 1899 Standard Oil was the leading and dominant name in the American oil industry. A holding company, Standard Oil of New Jersey, was formed and through this holding company various Standard Oil Companies were controlled from 1899 to 1911. During this period of time the name “Standard Oil”, by extensive national advertising and excellent products, achieved a nationwide reputation. In 1911 the Supreme Court held that the method of operation of Standard Oil violated the Sherman Antitrust Act and ordered the company dissolved. Standard Oil Co. of New Jersey v. United States, 221 U.S. 1, 31 S.Ct. 502, 55 L.Ed. 619 (1911). After 1911 the courts determined that various Standard Oil Companies had the exclusive right to use the Standard name and marks in their own territories, as this Court so held in 1937 in relation to fourteen midwest states.

The courts throughout the United States have uniformly held that the particular Standard Oil Company which first and continuously used the name “Standard” and derivatives thereof in a particular trade area had the exclusive right to use that name and all derivatives therefrom to the exclusion of the other Standard Oil Companies and to the exclusion of all strangers who attempted to use the name. See Standard Oil Company (Sohio) v. Standard Oil Company (Indiana), 141 F.Supp. 876 (D.Wyo.1956), aff’d 252 F.2d 65, 76 A.L.R.2d 600 (10 Cir.1958); Standard Oil Co. of Colorado v. Standard Oil Co. (Indiana), 72 F.2d 524 (10 Cir. 1934), cert. den. 293 U.S. 620, 55 S.Ct. 216, 79 L.Ed. 708; Standard Oil Co. of New Mexico v. Standard Oil Co. of California, 56 F.2d 973 (10 Cir. 1932); Esso Standard Oil Co. v. Standard Oil Co. of New England, 170 F.Supp. 71 (D.N.H.1958); Standard Oil Co. (Indiana) v. Standard Oil of North Dakota, 123 F.Supp. 227 (D.N.D.1954); Esso Standard Oil Co. v. Bazerman, 99 F.Supp. 983 (E.D.N.Y.1951); Standard Oil of New York v. Standard Oil of Maine, 38 F.2d 677 (D.Maine 1930), aff’d [561]*5611 Cir., 45 F.2d 309; Standard Oil Co. (Indiana) v. Michie, 34 F.2d 802 (E.D.Mo.1929). The one exception to this universal holding was found in the case of Humble Oil & Refining Co. v. Standard Oil Co. (Kentucky), 229 F.Supp. 586 (D.C.Miss.1964), where Standard Oil (Kentucky) had been distributing Esso products under a licensing agreement which had expired. Thereafter, Humble began using Esso products in the five southeast states area, Alabama, Georgia, Florida, Kentucky and Mississippi, in its own right. The district court held that if any confusion resulted, it was the fault of Standard Oil (Kentucky), and it could not now complain. This case was reversed by the Fifth Circuit Court of Appeals on July 1, 1966, Standard Oil Co. (Kentucky) v. Humble Oil & Refining Co. 363 F.2d 945 (5 Cir. 1966), and an application for certiorari is now pending in the United States Supreme Court.

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Humble Oil & Refining Co. v. American Oil Co., 259 F. Supp. 559, 151 U.S.P.Q. (BNA) 266, 1966 U.S. Dist. LEXIS 8309 (E.D. Mo. 1966).

259 F. Supp. 559 (Humble Oil & Refining Co. v. American Oil Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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