North Star State Bank of Roseville v. North Star Bank Minnesota

361 N.W.2d 889, 1985 Minn. App. LEXIS 3802
CourtCourt of Appeals of Minnesota
DecidedFebruary 5, 1985
DocketC7-84-1509, C5-84-1900
StatusPublished
Cited by14 cases

This text of 361 N.W.2d 889 (North Star State Bank of Roseville v. North Star Bank Minnesota) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North Star State Bank of Roseville v. North Star Bank Minnesota, 361 N.W.2d 889, 1985 Minn. App. LEXIS 3802 (Mich. Ct. App. 1985).

Opinion

OPINION

POPOVICH, Chief Judge.

North Star Bank Minnesota appeals from an order granting a temporary injunction and from an order modifying and clarifying it.

North Star State Bank of Roseville sought a temporary injunction claiming trade name and service mark infringement, unfair competition, and violation of Minnesota’s deceptive trade practices act. In its order of August 2, 1984, as amended on August 3, 1984, the trial court enjoined North Star Bank Minnesota from serving an area previously designated by North Star State Bank of Roseville under the Community Reinvestment Act. The court further required North Star Bank Minnesota to use the name “North Star Bank Minnesota, formerly Crystal State Bank” in future advertisements, reprints of forms, telephone salutations, and name designations in its places of business.

North Star Bank Minnesota contends (1) the trial court’s findings and conclusions do not support the order, (2) North Star State Bank of Roseville did not show it would *892 likely succeed on the merits, (3) the balance of equities tilts in its favor, and (4) public policy weighs against the injunctive relief granted. North Star State Bank of Rose-ville seeks review contending the lower court abused its discretion by granting an injunction which did not restore the parties to the status quo ante.

On October 22, 1984, the trial court ordered North Star Bank Minnesota not to use the words “North Star Bank” unless the words “formerly Crystal State Bank” are used with equal emphasis and prominence. North Star Bank Minnesota appeals from the order. North Star State Bank of Roseville seeks review of the order to the extent that it did not restore the parties to the status quo ante. On October 30, 1984, this court ordered (1) the October 22, 1984 order constituted a modification and clarification of the existing temporary injunction, (2) the order is stayed until further order, and (3) all claims would be considered with the appeal of the existing temporary injunction. We affirm.

FACTS

Respondent North Star State Bank of Roseville was incorporated as the Falcon Heights State Bank in 1947. For thirteen years it has been providing banking services under the name of North Star State Bank of Roseville. Its main office is located in Roseville, Ramsey County, Minnesota, a northern suburb of the Twin Cities. In advertising and otherwise, it refers to itself as North Star State Bank or North Star Bank.

Since 1972, respondent spent over $185,-000 to promote its services. It has advertised in magazines and newspapers in the Twin Cities area and in magazines with a statewide distribution. It has also sponsored a KTCA weekly telecast and advertised on radio.

Appellant North Star Bank Minnesota has been providing banking services under the name of Crystal State Bank for the last thirty years. Its main office is located in Crystal, Hennepin County, Minnesota, a northwest suburb of the Twin Cities. North Star Bank Minnesota is approximately ten miles from North Star State Bank of Roseville.

On March 12, 1984, appellant sought approval from the Minnesota Department of Commerce to change its name to “North Star Bank.” The Commissioner found it was likely the public might confuse the bank with the North Star State Bank of Roseville. He returned the proposal and filing fee and suggested appellant submit an additional distinguishing name. The Commissioner approved the name North Star Bank Minnesota on April 13, 1984. Appellant began operating under its new name on April 23, 1984.

Appellant advised its customers it would be changing its name to “North Star Bank,” advertised its name change, and referred to itself as North Star Bank. In these advertisements it placed its logo, a stylized street sign with the words “Easy Place,” between the words north and star. In effect, the words “Easy Place” are above the words “North Star Bank.” The name North Star Bank along with the logo appear on most of appellant’s printed forms, stationery, etc. In the 1984 Minneapolis telephone Consumer Yellow Pages an ad asks “Which Northstar bank is easiest for you?” Crystal State Bank is listed as the first of three.

On May 3, 1984, respondent applied for and received a state certification for its service mark “North Star” for use in connection with banking services. It also received a certification for its mark “North Star” and a design which includes an outline of Minnesota with a superimposed star.

Since appellant changed its name, respondent’s employees reported a large number of instances where people mistakenly thought they were talking with, corresponding with, or transferring funds to appellant. These include respondent’s customers and members of the banking and financial community. As an example, a customer told respondent’s chief executive officer it would now be more convenient to do his banking at the new North Star Bank *893 in Crystal rather than in the Roseville office.

Both appellant and respondent agree there are no geographic, economic or legal boundaries which restrict the areas from which they may draw customers. As of June 11, 1984, appellant had 218 accounts with addresses in the Ramsey County zip code area close to respondent’s home office. Respondent has 428 accounts from Hennepin County in areas essentially north and west of Minneapolis center city and including Crystal.

In an order dated August 2,1984, amended on August 3, 1984, the trial court enjoined appellant from serving an area previously designated by respondent under the Community Reinvestment Act. The court further required appellant to use the name “North Star Bank Minnesota, formerly Crystal State Bank” in future advertisements, reprints of forms, telephone salutations, and name designations in its places of business.

On September 25, 1984, North Star State Bank of Roseville applied for an order of contempt alleging that North Star Bank Minnesota was violating the court’s orders of August 2 and 3, 1984. The court denied the motion for contempt and in its memorandum stated that North Star Bank Minnesota was not “technically” in contempt because it substantially complied with the letter of the court’s order although not complying with the spirit of the order. It found that by using radically different sized types and reverse type, North Star Bank Minnesota had actually accentuated the words “North Star Bank” and made the distinguishing words unnoticeable. The court therefore ordered another hearing to consider changing the requirements of the temporary injunction.

On October 22, 1984, the trial court ordered North Star Bank Minnesota to not use the words “North Star Bank” unless “the words ‘formerly Crystal State Bank’ [were] used with equal emphasis and prominence.” The court stayed its order until November 15, 1984 to permit preparation for compliance. The court of appeals stayed the October 22, 1984 order until further order directing North Star Bank Minnesota to comply with the spirit as well as the letter of the underlying temporary injunction.

ISSUES

1. Do the trial court’s findings and conclusions support a temporary injunction?

2. Did the trial court abuse its discretion by granting a temporary injunction?

3.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Northland Ins. Companies v. Blaylock
115 F. Supp. 2d 1108 (D. Minnesota, 2000)
Ecolab, Inc. v. Gartland
537 N.W.2d 291 (Court of Appeals of Minnesota, 1995)
DeRosier v. 5931 Business Trust
870 F. Supp. 941 (D. Minnesota, 1994)
Phipps Bros. Inc. v. Nelson's Oil & Gas, Inc.
508 N.W.2d 885 (South Dakota Supreme Court, 1993)
State Ex Rel. Andersen v. Reward Corp.
482 N.W.2d 815 (Court of Appeals of Minnesota, 1992)
Claybourne v. Imsland
414 N.W.2d 449 (Court of Appeals of Minnesota, 1987)
North Star State Bank of Roseville v. North Star Bank Minnesota
365 N.W.2d 788 (Court of Appeals of Minnesota, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
361 N.W.2d 889, 1985 Minn. App. LEXIS 3802, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-star-state-bank-of-roseville-v-north-star-bank-minnesota-minnctapp-1985.