Mellwood Distilling Co. v. Harper

167 F. 389, 1908 U.S. App. LEXIS 5479
CourtU.S. Circuit Court for the District of Western Arkansas
DecidedDecember 9, 1908
StatusPublished
Cited by3 cases

This text of 167 F. 389 (Mellwood Distilling Co. v. Harper) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Western Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mellwood Distilling Co. v. Harper, 167 F. 389, 1908 U.S. App. LEXIS 5479 (circtwdar 1908).

Opinion

ROGERS, District Judge.

The bill in this case was filed by the Mellwood Distilling Company, a corporation organized under the laws of the state of West Virginia, and having its principal place of business in the city of Louisville, in the state of Kentucky, against Samuel R. Harper and Cyrus E. Reynolds, citizens and residents of the Ft. Smith division of the Western district of Arkansas, partners, doing business under the firm name of the Harper-Reynolds Liquor Company, and alleges that complainant is the sole and exclusive owner of a certain trade-mark for whisky, consisting of the word “Mellwood,” which has been applied to whisky by the complainant and its predecessors since 1855; that said trade-mark has been applied to whisky by being marked or branded upon packages containing the whisky, or containing the bottles in which said whisky was contained, when bottled, and by the same being imprinted upon labels affixed to bottles containing the whisky; that whisky bearing the trade-mark “Mellwood” has been extensively sold throughout the United States, and particularly in the state of Arkansas, and has been extensively advertised by complainant throughout the United States; that said trade-mark is an .integral part of the good will of the complainant, and is one of its principal assets, and is of large value; that the whisky to which said trade-mark is applied is of superior excellence and of uniform quality, and that its reputation for such excellence and quality is owing to the labor and expenditure of money by the complainant and its predecessors, extended throughout the United States; that the value of the trade-mark is $500,000, and that complainant’s right to be subjected to none but fair and lawful competition is of that value and upward; that complainant is the proprietor and sole owner of distillery No. 34, Fifth internal revenue district in the state of Kentucky, and said distillery is known as the “Mellwood Distillery.” The bill then alleges that the defendants, well knowing these facts, on the 2d of January, 1905, and has continuously since, availed themselves of the reputation of said whisky designated by said trade[391]*391mark, fraudulently intending to invade complainant's good will and divert its trade, made or caused to be made, or sold and caused to be sold, in the city of Ft. Smith, Ark., and elsewhere, a certain spurious liquor, not produced by complainant, to which they have caused the trade-mark “Mill Wood” to be affixed; that in and by said fraudulent traffic the defendants have diverted to themselves the trade of complainant, and have invaded its good will, and have instituted and maintained, and are now maintaining, a fraudulent and unfair competition with complainant. It further alleges that said whisky, to which the words “Mill Wood” have been affixed by the defendants, has been further marked and branded by them with the words “Kentucky Mill Wood Distilling Company,” and complainant avers that there is not now. and never has been, in the state of Kentucky any distillery company doing business under the name of the “Kentucky Mill Wood Distilling Compan}',” or “Mill Wood Distilling Company.” It further avers that said names “Kentucky Mill Wood Distilling Company” and “Mill Wood Distilling Company” have been adopted and used by defendants solely for tlie purpose of fraud and deceit, in order to enable them to pass off their whisky as the whisky of complainant. The bill further avers that the whisky sold under this name by the defendants is not produced in Kentucky, and is a compound of spirituous coloring matter, and other ingredients, prepared by them in the city of Ft. Smith. It then avers, in substance, that this misconduct on the part of defendants has resulted to the complainant in the loss of the sales of its own whisky, and in great injury to the reputation of complainant's product; that said liquor has been bought by the public and consumers under the belief that they were purchasing complainant’s whisky and that the sanie was deteriorating in quality. It then alleges no adequate remedy at law, and prays for an injunction perpetually enjoining the defendants and their privies from making, keeping, offering for sale, and selling any liquor not produced by the complainant hearing the mark or the words “Kentucky Mill Wood Distilling Company," “Mill Wood,’’ or “Mill Wood Distilling Company,” and' for an account of gains and profits thus unlawfully made and received.

In short, the defendants deny all fraud and deceit, and all purpose upon their part to injure the complainant, or avail themselves of the brand of its whisky; and, to all intent and purposes, all tlie other allegations in tlie bill. They set forth, and make a part of their answer the label which complainant used on the whisky it sold, and also a copy of the label on the whisky which they sold, deny any infringement, and insist that in the use of the .words “Mill Wood” no deceit or fraud was practiced against complainant, and allege that none was intended. It can be of little use to set forth more fully the specific allegations in the answer. The facts upon which the case will turn will largely depend upon an examination of these labels, and the proofs in the case.

The following facts are uncontradicted: The “Mellwood Distillery Company” is a corporation organized under the laws of the state of West Virginia, and doing business at Louisville, Ky., where its principal office is located. It has owned, since July 21, 1902, the Mell[392]*392wood Distillery, located at Mellwood and Frankfort avenues, Louisville, Ky.,' and it and its predecessors have owned the “Mellwood” brand of liquors since 1869, and it has remained in continuous use by them ever since. The “Mellwood” brand was well known to the trade, and its sales were large, and the very high grade quality of the whisky well established. The brand and good will of the business is estimated by the witnesses to be very large. About 10,000 barrels and 50,000 cases (some of the cases being filled out of the 10,000 barrels) were sold annually, and was manufactured at an annual cost of $300,000, and the distillery is estimated to be worth $600,000. The brand “Mellwood” was originated by the late George W. Swearingen, a farmer (who ran a small distillery on his farm, which he called “Millwood”), and after selling the .farm he removed to Louisville, Ky., and engaged in the whisky business, and concluded to name this brand after the old farm, “Millwood,”, but by error of the man who made the brand the name was misspelled “Mellwood,” which Mr. Swearingen concluded to adopt. By mesne conveyances, on July 21, 1902, the “Mellwood Distilling Company” became the owner of the distillery and all appurtenances, including the name “Mellwood,” and has owned and used it since as a brand on its whisky.

The defendant Cyrus F. Reynolds testifies that prior to 1894 he was an employé of M. C. Wallace, a liquor dealer at Ft. Smith, Ark., who carried complainant’s “Mellwood” brand of whisky in stock; that he first became familiar with it while an employé of said Wallace ; that about that time his partner, Danner, and himself bought out Wallace, and they continued to carry the same brand, but did not buy it in bottles; that later Danner and himself dissolved, and he became a partner and a member of the firm of Harper Bros., who also had the same brand in stock. Later Harper Bros., was succeeded by defendants, and they too carried the same brand, and had it on the shelves when this bill was filed; that they also had in stock on the shelves the “Mill Wood” brand, which it is alleged infringes the “Mellwood” brand.

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Cite This Page — Counsel Stack

Bluebook (online)
167 F. 389, 1908 U.S. App. LEXIS 5479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mellwood-distilling-co-v-harper-circtwdar-1908.