International Heating Co. v. Oliver Oil Gas Burner & Machine Co.

288 F. 708, 30 A.L.R. 611, 1923 U.S. App. LEXIS 2207
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 7, 1923
DocketNo. 5971
StatusPublished
Cited by14 cases

This text of 288 F. 708 (International Heating Co. v. Oliver Oil Gas Burner & Machine Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Heating Co. v. Oliver Oil Gas Burner & Machine Co., 288 F. 708, 30 A.L.R. 611, 1923 U.S. App. LEXIS 2207 (8th Cir. 1923).

Opinion

JOHNSON, District Judge.

Appellee was plaintiff in the court below. It brought the suit to restrain unfair competition and for an accounting of profits. Plaintiff company was organized early in 1918, with its principal place óf business in St. Louis, Mo. Since its organization plaintiff has carried on the business of manufacturing and selling oil and gas burners, which it has brought to the attention of the public through advertisements in various newspapers, magazines, and periodicals. Plaintiff has sold its burners principally through soliciting agents, but it does a mail order business also, and has disposed of some of its burners directly to customers. In the conduct of its business plaintiff made up lists of customers and prospective customers, which lists were furnished to and used by its agents. These lists were also used by plaintiff in its mail order business. Shortly after the organization of the company, the defendant Grafe was employed by the plaintiff to assist in the conduct of the business in the St.Louis office. He became familiar with and made use of the lists of customers above mentioned. He assisted the general manager in preparing advertising copy. Sometimes, in the absence of the general manager, he alone prepared the copy. About the 1st of February, 1920, the defendant Grafe left plaintiff’s service, and shortly thereafter, with others, organized the defendant company, with its principal place of business in St. Louis. The defendant company immediately began to manufacture and sell oil and gas burners similar to plaintiff’s burners. Grafe was manager of the business. The defendant company adopted plaintiff’s plan of business; that is, it advertised its burners in newspapers, magazines, and periodicals, sold through soliciting agents, and did a mail order business directly with customers.

The unfair competition alleged in the complaint is: (1) That the defendant Grafe, while in plaintiff’s, service, made copies of the lists of plaintiff’s customers above mentioned; that he delivered these copies to the defendant company, and the defendant company was using these lists to sell its burners to plaintiff’s customers. (2) That the defendant company, in the advertisements of its burners in newspapers, magazines, and periodicals, has imitated those published by plaintiff, and has made them so similar in appearance and wording to plaintiff’s that the ordinary person, reading defendants’ advertisements, would be deceived and believe that he was reading the advertisements of plaintiff, and that the public is necessarily and intentionally deceived and led to purchase the product of the defendant company, believing it to be the product of plaintiff.

Upon the final hearing, the trial court, upon the first ground, found for defendants; upon the second ground, for plaintiff. It thereupon granted an injunction and ordered an accounting of profits. It should be noted that there is in the case no question of trade-mark or trade-[710]*710name, or of imitation' of plaintiff’s burner or of the dress in which it is presented to the public.

In his brief, counsel for plaintiff repeatedly charges the defendant Grafe with bad faith. The evidences of bad faith, put forward and commented upon in the argument, are that Grafe, while still in plaintiff’s service, planned the organization of a competing business, opened the books of plaintiff to strangers for the purpose of inducing them to join him in organizing the defendant company, kept copies of all advertising literature, instructed a subordinate not to answer letters from complaining customers, burned plaintiff’s paragraph book, left plaintiff’s service in violation of his agreement to remain for another year, and after leaving plaintiff’s service Grafe said the almighty dollar was his god and he would “get” plaintiff’s business, appropriated and used in the advertisements and advertising literature of the defendant company certain words, phrases, and sentences, and also in general outline the pictorial representations, appearing in plaintiff’s advertisements, advertising copy, and literature, duplicated plaintiff’s plan of advertising campaign for 1920 as outlined to him while still in plaintiff’s service by the general manager, organized the defendant company, “not so much to build up a business of his own,” but “by using everything of plaintiff company which he could * * * ‘to get the Oliver Company and put it out of business.’ ” These evidences of bad faith are put forward, not as independent causes of action, but to buttress and reinforce the cause of action alleged in the complaint of unfair competition by imitation of plaintiff’s advertisements, etc. Counsel in his brief says:

“The purpose of this suit is to stop the deception at the first point of contact with the public, to wit, when the public sees the advertisement and then gets the follow-up literature in answer to inquiries.”

And:

“We feel that in the instant ease are several elements, the proof of one of which in other cases has been sufficient to warrant an injunctive decree, but the several elements so combined here demand as the only just and equitable thing that can be done to stop this unfair and irreparable withdrawal by Grafe and his associates of plaintiff’s business, is to hold aloft the strong arm of equity which was interposed by the District Court below.”

It is only fair to say the statement that Grafe organized the defendant company “not so much to build up a business of his own,” but “by using everything of plaintiff company which he could * * * ‘to get the Oliver Company and put it out of business,’ ” is without support in the evidence.

Plaintiff’s cause of action is that the defendant company, in the advertisements of its burners in newspapers, magazines, and periodicals, has imitated those published by plaintiff, and has made them so similar in appearance and wording to plaintiff’s that the ordinary person reading defendants’ advertisements would be deceived and believe that he was. reading the advertisements of plaintiff, and that the public is necessarily deceived and led to purchase the product of the defendant company, believing it to be the product of plaintiff. If Grafe did all the things he is charged with doing, in what way is plaintiff’s case [711]*711strengthened? His conduct may have been unethical, and reprehensible, but the things he is charged with doing, whether considered singly or together, do not in the remotest degree tend to prove that the advertisements of the defendant company were so similar in appearance and wording to plaintiff’s that the ordinary person reading those of the defendant would be deceived' and believe that he was reading the advertisements of plaintiff.

Let it be conceded, as claimed by plaintiff, that Grafe appropriated and used in the advertisements and advertising literature of the defendant company certain words, phrases, and sentences, and in general outline the pictorial representations appearing in plaintiff’s advertisements and advertising literature, what right of plaintiff was encroached upon? It seems to be plaintiff’s contention that the language of its advertisements, advertising copy and literature used during the years 1918 and 1919'which Grafe prepared or assisted in preparing, and the language of advertising copy intended for use in 1920 which the witness Oliver testified he showed to Grafe in January, 1920, were ‘confidential information which Grafe had no right to use in preparing the advertisements and advertising literature of the defendant company.

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Cite This Page — Counsel Stack

Bluebook (online)
288 F. 708, 30 A.L.R. 611, 1923 U.S. App. LEXIS 2207, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-heating-co-v-oliver-oil-gas-burner-machine-co-ca8-1923.