New York & New Jersey Lubricant Co. v. Young

77 A. 344, 77 N.J. Eq. 321, 7 Buchanan 321, 1910 N.J. Ch. LEXIS 29
CourtNew Jersey Court of Chancery
DecidedAugust 8, 1910
StatusPublished

This text of 77 A. 344 (New York & New Jersey Lubricant Co. v. Young) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York & New Jersey Lubricant Co. v. Young, 77 A. 344, 77 N.J. Eq. 321, 7 Buchanan 321, 1910 N.J. Ch. LEXIS 29 (N.J. Ct. App. 1910).

Opinion

Stevens, V. C.

This is a hill to enjoin the defendant corporation from selling or offering for sale, their lubricating compositions or greases under the name of “Nonfluid oil.”

The bill charges that immediately after its incorporation, in 1896, the complainant began the business of manufacturing and selling lubricants, and that for the purpose of identifying certain lubricating compositions, originated and manufactured by it from similar wares sold by others, on or about March 29th, 1900, it adopted and made use of, and since then has continued to make use of, a certain distinguishing mark or trade name, to wit, the words “Nonfluid oil,” and that it has affixed the same as a label upon its boxes, packages and cans ever since the date named. The evidence sustains this allegation.

The answer denies that the defendant has counterfeited, copied or colorably imitated any trade-mark or name of complainant, .in violation of complainant’s rights, or that in the manner, of placing its name and the name of its goods upon its boxes, it has counterfeited, copied or imitated the manner of placing the name of the complainant upon complainant’s goods or boxes. The evidence does not sustain this averment. In the case of some, at least, of defendant’s cans and packages there is undoubtedly a design to imitate the make-up of complainant’s cans and packages. The principle controversy, however, hinges upon the use by defendant of the words “Nonfluid oil.” As to this, defendant says that the name was employed as a descriptive designation of the goods which it manufactured and sold; that the words composing it are words in general use in the English language, having a definite and well established meaning, and that as such they may be used by anyone who manufactures and sells goods of which the words are properly descriptive. This insistment would, no doubt, be sound if the lubricant that both parties make be, in fact, an oil. The undisputed evidence, however, shows that neither parly manufactures an oil, properly so called. What they do [323]*323put out is a grease. The two substances are so dissimilar that complainant founds his case upon the admitted difference. Were it not for the dissimilarity, it is conceded that complainant would have no exclusive right, for the reason that neither the descriptive adjective “nonfluid,” nor the noun “oil,” are capable of exclusive appropriation by any single manufacturer, if used in their proper sense.

The complainant in his bill charges that the term “Uonfluid oil” is an arbitrary, fanciful and distinguishing name or trademark, applied by it to lubricating compositions for the first time. It does not tell us, however, wherein it is arbitrary or fanciful. It does not allege that its “lubricating compositions” are really greases and not oils, and that, as applied to these compositions, the name is arbitrary and fanciful and therefore capable of appropriation by the first user. In order to make out its case it had to show this by proof. Standing by themselves, the words do not appear to be either arbitrary or fanciful. They apply to a well-known article of commerce, some of whose varieties are, at ordinary temperatures, solid. Uonfluid, as applied to them, is purely descriptive. On its appearing that complainant’s lubricants were greases, defendant took the ground that the term in its application to such greases was a falsehood calculated to deceive the public, upon which complainant could base no right, even as against defendant, guilty of the same falsehood.

This brings us to the point of the case. Can the complainant have an injunction to protect its use of a label that tells this untruth ?

The law has been settled by courts of the highest authority. In Worden v. California Fig Syrup Co., 187 U. S. 516, the supreme court of the United States, speaking by Mr. Justice Shiras, thus stated it: “When the owner of a trade-mark applies for an injunction to restrain the defendant from injuring his property by making false representations to the public, it is essential that the plaintiff should not in his trade-mark, or in his advertisements and business, be himself guilty of any false or misleading representation; that if the plaintiff makes any material false statement in connection with the property he seeks to protect, he loses his right to claim the assistance of a [324]*324court oi equity; that where any symbol or label claimed as a trade-mark is so constructed or worded as to make or contain a distinct assertion -which is false, no property can be claimed on it, or, in other words, the right to the exclusive use of it cannot be maintained.”

In Prince Manufacturing Co. v. Prince’s Metallic Paint Co., 135 N. Y. 24, Mr. Justice Andrews said: “Any material misrepresentation in a label or trade-mark as to the person by wdiom the article is manufactured, as to the place where manufactured, or as to the materials composing it, or any other material false representation deprives a party of the right to relief in equity. The courts do not, in such eases, take into consideration the attitude of the defendant, although the defendant’s conduct is without justification. This, in the view of a court of equity, affords no reason for interference. * * * And although the false article is as good as the true one, the privilege of deceiving the public oven for their own benefit is not a legitimate subject of commerce.”

And Lord Westbury, in Leather Cloth Co. v. American Leather Cloth Co., 4 De G. J. & S. 137, said: “When the owrner of a trade-mark applies for an injunction to restrain defendant from injuring his property by making false representations to the public, it is essential that the plaintiff should not, in his trade-mark or in the business connected with it, be himself guilty of any false or misleading representation; for if he makes any material false statement in connection with the property he seeks to protect, he loses and very justly, his right to claim the assistance of a court of equity.” The statement of the law, by Lord Westbury, -was approved on appeal by the house of lords. 11 H. L. Cas. 523.

I have cited these passages for the purpose of showing that the rule as laid down b3r courts of the highest authority is of universal application. It is not, either in terms or because of its declared reason, confined to particular classes of cases. The classification suggested by counsel finds no support in the above utterances or in any case to which he has referred me.

There is no such limitation as counsel suggests, to be found in the language of our owm decisions, so far as they have dealt [325]*325with the subject. In Johnson & Johnson v. Seabury & Johnson, 71 N. J. Eq. (1 Buch.) 750, Mr. Justice Swayze thus expresses himself: “There is no question about the principle that a false representation in a trade-mark will prevent equitable relief for its protection. The cases cited by defendant are, with one exception, cases where the false representation was contained in the trade-mark itself. In such a case it is quite impossible to determine to what extent good will, for which protection is sought, has been created by the false assertion and to afford protection to a trade-mark containing a false representation would perpetuate the falsehood by the decree of the court.” To the same effect is Bear Lithia Springs Co. v. Great Bear Spring Co., 71 N. J. Eq. (1 Buch.) 596.

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Related

Worden v. California Fig Syrup Co.
187 U.S. 516 (Supreme Court, 1903)
Prince Manufacturing Co. v. Prince's Metallic Paint Co.
31 N.E. 990 (New York Court of Appeals, 1892)

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77 A. 344, 77 N.J. Eq. 321, 7 Buchanan 321, 1910 N.J. Ch. LEXIS 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-new-jersey-lubricant-co-v-young-njch-1910.