Norden Restaurant Corp. v. Sons of the Revolution

73 A.D.2d 213, 425 N.Y.S.2d 810, 209 U.S.P.Q. (BNA) 1147, 1980 N.Y. App. Div. LEXIS 10043
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 13, 1980
StatusPublished
Cited by2 cases

This text of 73 A.D.2d 213 (Norden Restaurant Corp. v. Sons of the Revolution) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norden Restaurant Corp. v. Sons of the Revolution, 73 A.D.2d 213, 425 N.Y.S.2d 810, 209 U.S.P.Q. (BNA) 1147, 1980 N.Y. App. Div. LEXIS 10043 (N.Y. Ct. App. 1980).

Opinions

OPINION OF THE COURT

Ross, J.

The corporate defendant, formed in 1883, is a patriotic [215]*215organization dedicated to keeping alive the best traditions of the "Spirit of '76”. This not-for-profit corporation is the owner of historic Fraunces Tavern, a five-building, interconnected complex located in lower Manhattan. In 1904, defendant acquired this property through a bequest from a descendant of an officer on General George Washington’s staff, who was present at the Commander-in-Chiefs farewell ceremony conducted at Fraunces Tavern. Through the society’s efforts, this building has been successfully restored to its original "revolutionary” character. The defendant now maintains its offices there and is curator of an on-premises museum.

Plaintiff leases the main building and portions of adjoining buildings of this complex and operates a restaurant therein. The Norden family has operated this food emporium for over 40 years. The plaintiff has at various times, through various media and accuterments of plaintiff’s trade, advertised the name of this restaurant as Fraunces Tavern. The existing lease signed in mid-December, 1977, effective, January 1, 1977, provides in pertinent parts:

§ 3.04 "The business conducted by Tenant in the premises is only to be conducted under the name 'Fraunces Tavern Restaurant’ or such other name as Landlord shall from time to time approve in writing”.
§ 40.01 "Tenant covenants and agrees that in any and all advertising of the business of Tenant * * * Tenant will in no way state or imply that the Buildings are in any way the property of Tenant or of the restaurant operated by it in the premises * * * The right to use the name 'Fraunces Tavern Restaurant’ in connection with Tenant’s business shall be limited to the restaurant business conducted in the premises and to no other business or location”.

Plaintiff, as lessee, instituted this action for, inter alia, water damages and to enjoin defendant from interfering with proposed interior remodeling. Defendant, alleging breach of lease in a third counterclaim, sought to enjoin plaintiff from using the name Fraunces Tavern, and from prosecuting its Federal trade-mark application. Special Term denied defendant-appellant’s motion for partial summary judgment on the third counterclaim and granted plaintiff’s cross motion to the extent of dismissing this counterclaim.

The question then presented by this appeal is whether Special Term erred in denying defendant landlord’s motion for partial summary judgment enjoining plaintiff lessee’s use of [216]*216the service mark Fraunces Tavern. On the facts presented herein, injunctive relief cannot be granted summarily.

The terms "service mark” and "tráde-mark” are related concepts and both are governed by identical standards (Boston Professional Hockey Assn. v Dallas Cap & Emblem Mfg., 510 F2d 1004; West & Co. v Arica Inst., 557 F2d 338). "Service mark” has been defined as a mark used in the sale or advertising of services to identify the services of one .person and distinguishes them from services of others. "Trade-mark”, although similarly defined, identifies a manufacturer’s or merchant’s goods or products. (Lanham Trade-Mark Act [60 US Stat 427]; US Code, tit 15, § 1127; see, also, General Business Law, § 360, subds [a], [a-i].) The twofold congressional intent for protecting trade-mark is: " 'to protect the public so it may be confident that, in purchasing a product bearing a particular trade-mark which it favorably knows, it will get the product which it asks for and wants to get. Secondly, where the owner of a trade-mark has spent energy, time, and money in presenting to the public the product, he is protected in his "investment” from its misappropriation by pirates and cheats’ ” (7 NYL For 91, 92).

In this court defendant argues that through its efforts the mark "Fraunces Tavern” has become synonymous with its organization and with the maintenance and preservation of a landmark steeped in historical significance. Additionally, the restrictive terms and conditions in the current lease between defendant and plaintiff prohibit the latter’s use of this mark. Therefore, the mark has derived its sole uniqueness from these labors and the society is entitled to the protection and goodwill flowing therefrom. Plaintiff similarly argues that the consuming public identifies the mark in dispute as connoting a distinguished restaurant. The record on appeal divulges conflicting substantial claims by both parties. It is axiomatic that both cannot claim the benefits of this individual mark.

Each controversy in this area of the law must be decided on its own merits since the circumstances surrounding each are not readily duplicated. "Although this type of litigation has been said to present mixed questions of law and fact * * * the emphasis, and rightly so, we believe, seems to have been placed upon the fact pattern of each situation [citations omitted]. Each case * * * must be decided on its facts” (Dell Pub. Co. v Stanley Pub., 9 NY2d 126, 133).

Courts have long recognized that noncommercial organi[217]*217zations are entitled, under proper circumstances, to enjoin the pirating of a mark by a junior user even though not in direct competition. "Equity may also shield the thrust by business into the kind of legal rights acquired in areas entirely removed from commercial activities” (Cornell Univ. v Messing Bakeries, 285 App Div 490, 492, affd 309 NY 722).

Under any circumstances, whatever the mark, the more viable it is in the current market, the greater is its need for protection from unwarranted incursions. "The real injury * * * 'is the gradual whittling away or dispersion of the identity and hold upon the public mind of the mark or name by its use on noncompeting goods. The more distinctive or unique the mark the deeper is its impress upon the public consciousness and the greater its need for protection against vitiation or dissociation from the particular product in connection with which it has been used’ [citation omitted]” (Tiffany & Co. v Tiffany Prods., 147 Misc 679, 681-682, affd 237 App Div 801, affd 262 NY 482). Without question the mark Fraunces Tavern is recognized by the consuming public in the local market place, if not the national. Whether the common man recognizes this mark as synonymous with an historic setting, or as a restaurant, cannot be decided in the absence of a complete trial. For this reason our dissenting colleagues’ reliance on Stogop Realty Co. v Marie Antoinette Hotel Co. (217 App Div 555) is misplaced. There, a full hearing was concluded before a determination was rendered, and, moreover, the subject premises were specifically constructed for the use to which they were put. In Stogop Realty Co. v Marie Antoinette Hotel Co. (supra) the court found that the name "Hotel Marie Antoinette” had become inseparably connected with the building, and had become synonymous with the hotel business through the efforts of plaintiff’s predecessor. Here, Fraunces Tavern was built for the use the name implies and has been so utilized in that manner since 1763. On the record before us it cannot summarily be said that the name Fraunces Tavern has become "appurtenant to and inseparably connected” with the defendant society. These incompatible assertions must be resolved at trial.

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Bluebook (online)
73 A.D.2d 213, 425 N.Y.S.2d 810, 209 U.S.P.Q. (BNA) 1147, 1980 N.Y. App. Div. LEXIS 10043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norden-restaurant-corp-v-sons-of-the-revolution-nyappdiv-1980.