Miller Brewing Company v. Jos. Schlitz Brewing Co.

605 F.2d 990, 203 U.S.P.Q. (BNA) 642, 1979 U.S. App. LEXIS 12051
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 6, 1979
Docket78-2011
StatusPublished
Cited by138 cases

This text of 605 F.2d 990 (Miller Brewing Company v. Jos. Schlitz Brewing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller Brewing Company v. Jos. Schlitz Brewing Co., 605 F.2d 990, 203 U.S.P.Q. (BNA) 642, 1979 U.S. App. LEXIS 12051 (7th Cir. 1979).

Opinion

TONE, Circuit Judge.

Two years ago we reversed a preliminary injunction order against infringement of Miller Brewing Company’s trademark “LITE” for beer. We did so on the ground that “because ‘light’ is a generic or common descriptive word when applied to beer, neither that word nor its phonetic equivalent may be appropriated as a trademark for beer.” Miller Brewing Co. v. G. Heileman Brewing Co., 561 F.2d 75, 77 (7th Cir. 1977), cert. denied, 434 U.S. 1025, 98 S.Ct. 751, 54 L.Ed.2d 772 (1978). The principal question before us now is whether that determination in an interlocutory appeal should be given preclusive effect in another trademark action by Miller to enforce the same trademark against a different defendant, Jos. Schlitz Brewing Company. Holding that it should, the district court entered a summary judgment against Miller, Miller Brewing Co. v. Jos. Schlitz Brewing Co., 449 F.Supp. 852 (E.D.Wis.1978). The judgment is affirmed with respect to the trademark claims and vacated with respect to a joined unfair competition claim, and the case is remanded for further proceedings.

The present action was filed by Miller one year earlier than the Heileman action, and extensive discovery and other trial preparation took place during that year. Nevertheless, Miller chose to seek a preliminary injunction in the Heileman case rather than in this or any of six other cases it had earlier filed against other competitors. After our decision reversing the preliminary injunction in Heileman, Schlitz, which had filed a brief amicus curiae in this court in Heileman, moved in this case for summary judgment on the ground of collateral estoppel with respect to all claims of the complaint except those for knowingly false disparagement of a competitor’s product.

The district court granted the motion, holding that the doctrine of collateral estoppel was applicable under Blonder-Tongue Laboratories, Inc. v. University of Illinois Foundation, 402 U.S. 313, 91 S.Ct. 1434, 28 L.Ed.2d 788 (1971), to preclude Miller from litigating further, because this court in Heileman, although deciding an interlocutory appeal, had “found an insuperable obstacle to Miller’s maintenance of the litigation.” Therefore, under the principles laid down in Mast, Foos & Co. v. Stover Mfg. Co., 177 U.S. 485, 20 S.Ct. 708, 44 L.Ed. 856 (1900), and CES Publishing Corp. v. St. Regis Publications, Inc., 531 F.2d 11 (2d Cir. 1975), a final judgment without further liti *992 gation was appropriate. Miller’s argument that it had not had a full and fair opportunity in Heileman to litigate the question whether “light” or “LITE” is generic was rejected. 449 F.Supp. at 855. In granting summary judgment the district court ordered the Commissioner of Patents and Trademarks to cancel the trademark registrations of the mark, and, acting pursuant to Rule 54(b), Fed.R.Civ.P., found no just reason for delay and made the judgment final with respect to all claims that depended on the validity of the trademark. 449 F.Supp. at 855-856. This appeal followed.

I.

Availability of Collateral Estoppel to a Non-Party to the Prior Case.

The fact that Schlitz was not a party to the Heileman case will not preclude giving collateral estoppel effect to a determination necessarily made in that case, if Miller had a full and fair opportunity to litigate on the issue determined. Blonder-Tongue Laboratories, Inc. v. University of Illinois Foundation, supra, 402 U.S. at 332-334, 91 S.Ct. 1434. Whether a full and fair opportunity to litigate was afforded in the other action depends, Blonder-Tongue teaches, upon several factors, including who chose the forum, incentive to litigate, whether (speaking of the patent issues before the court in that case) “the prior case was one of those relatively rare instances where the courts wholly failed to grasp the technical subject matter and issues in suit,” and “whether without fault of his own the [party against whom preclusion is sought] was deprived of crucial evidence or witnesses in the first litigation.” Id. at 333, 91 S.Ct. at 1445. And, “[i]n the end, decision will necessarily rest on the trial courts’ sense of justice and equity.” Id. at 334, 91 S.Ct. at 1445.

Although the opinion in Blonder-Tongue demonstrates that the reasons for eliminating the doctrine of mutuality of estoppel weigh especially heavily in patent cases, they are applicable generally. E. g., Samuel C. Ennis & Co. v. Woodmar Realty Co., 542 F.2d 45, 49 (7th Cir. 1976). The Restatement (Second) of Judgments § 88 (Tent. Draft No. 3, 1976) states,

A party precluded from relitigating an issue with an opposing party, . is also precluded from doing so with another person unless the fact that he lacked full and fair opportunity to litigate the issue in the first action or other circumstances justify affording him an opportunity to relitigate the issue.

The “other circumstances to which consideration should be given” are those applicable in deciding whether the opposing party in the prior case should be allowed to relitigate, id. § 68.1, and additional ones applicable when mutuality of estoppel is lacking, id. § 88. Because of the nature of Miller’s suits against Heileman and Schlitz and the identity of the central issue in both, none of these “other circumstances” described in the Restatement are present in the case at bar, so the test to be applied is whether Miller had a full and fair opportunity to litigate, which is to be determined by applying the factors stated in Blonder-Tongue. See also Restatement, supra, § 68.1, Comment j, § 88, Comment b. 1

A. Who Chose the Forum

Miller chose the forum in the Heileman case. Moreover, when Miller sued Heileman the instant action against Schlitz had been pending for one full year, during which extensive discovery and trial preparation had been conducted by both Miller and Schlitz. Nevertheless, Miller had not sought a preliminary injunction against Schlitz. Simultaneously with the filing of the Heileman complaint, however, Miller moved for a preliminary injunction against Heileman. Whatever the litigation strate *993 gy that motivated Miller’s decision to seek a preliminary injunction and to seek it against Heileman rather than Schlitz despite the extensive preparation that had already gone into the Schütz

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Bluebook (online)
605 F.2d 990, 203 U.S.P.Q. (BNA) 642, 1979 U.S. App. LEXIS 12051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-brewing-company-v-jos-schlitz-brewing-co-ca7-1979.