Puget Sound Rendering, Inc. v. Puget Sound By-Products

615 P.2d 504, 26 Wash. App. 724, 1980 Wash. App. LEXIS 2204
CourtCourt of Appeals of Washington
DecidedJuly 10, 1980
Docket3571-II
StatusPublished
Cited by6 cases

This text of 615 P.2d 504 (Puget Sound Rendering, Inc. v. Puget Sound By-Products) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puget Sound Rendering, Inc. v. Puget Sound By-Products, 615 P.2d 504, 26 Wash. App. 724, 1980 Wash. App. LEXIS 2204 (Wash. Ct. App. 1980).

Opinions

[726]*726Petrich, J.

—Puget Sound By-Products, a division of Darling Delaware Company, Inc., appeals from a decree enjoining its use of the words "Puget Sound" in its trade name in connection with its plant facility in Tacoma, Washington, as well as its operations in Pierce County relating to the rendering business.

Appellant, defendant below, contends there was insufficient evidence to support the findings that the similarity of names led to confusion and that the injunction was unwarranted, or if warranted, was too broad. We affirm the issuance of an injunction, but agree with the defendant that a total prohibition of the use of "Puget Sound" is too broad in this instance, and limit the scope of the injunction.

Both parties to this lawsuit are engaged in the rendering business, which involves the collection of animal matter primarily from slaughterhouses and restaurants and processing the raw material into tallow, oils and meal.

The respondent, Puget Sound Rendering, Inc., hereafter referred to as Rendering, is a Washington corporation and has one shareholder, namely Herbert Sorensen who is its principal officer. From 1938 to 1971, Mr. Sorensen operated a rendering business with offices and a plant in Pierce County as a sole proprietorship under the name of Puget Sound Rendering Works. In 1971 Mr. Sorensen organized Rendering, and thereafter operated his business in the corporate form at essentially the same location.

Darling Delaware Company, Inc., a Delaware corporation, in 1971 purchased the assets including the name of Puget Sound By-Products Company, Inc., a Washington corporation, which had operated a rendering business headquartered in Everett, Snohomish County, Washington, continuously since 1948. Thereafter, Darling Delaware Company, Inc., operated the purchased business as "Puget Sound By-Products, a division of Darling Delaware Company, Inc.,” and is the appellant herein. It shall hereafter be referred to as By-Products.

In 1972 By-Products' facility in Everett was destroyed by fire, and the collection and processing of raw material was [727]*727accomplished at other plants located far from Pierce County. In 1975 By-Products purchased another rendering business in Tacoma known as Johnson Manufacturing Company, and thereafter used the name Puget Sound ByProducts, a division of Darling Delaware Company, Inc., in its Pierce County operations. In 1976 Rendering initiated this action alleging trade name infringement and unfair competition.

The evidence presented on behalf of Rendering through Mr. Sorensen and its office manager included many telephone calls and mailed or shipped items received which were actually intended for By-Products. Forty-two exhibits were introduced, consisting primarily of mail items. Plaintiff's evidence indicated that businesses serving the two firms were confused by the name similarity, as were various governmental agencies, including the Department of Labor and Industries, Department of Highways, Attorney General, Port of Tacoma, and the Bankruptcy Court.

By-Products first contends that Rendering lost its prior right to the words "Puget Sound" when it incorporated in 1971. It maintains that there was no evidence which specifically refers to the assignment of the name "Puget Sound Rendering" or other similar combination of words to the corporation when Mr. Sorensen incorporated his business into "Rendering" in 1971. By-Products therefore argues it was the first to use this name since it used "Puget Sound" before the incorporation of Rendering. This argument, however, ignores the clear inferences from the uncontested evidence that Mr. Sorensen incorporated his business, which he had operated from 1938 at the same location, into Rendering which continued the same operation and location under essentially the same name. The logical inference from these facts is that the name, with all the other assets used by Rendering, was assigned to it when the business was incorporated. The right to use a trade name belongs to the one who first uses it in connection with a particular business. Seattle St. Ry. & Mun. Employees Relief Ass'n v. Street, Elec. Ry. & Motor Coach Employees, [728]*7283 Wn.2d 520, 101 P.2d 338 (1940). That right is not lost where an owner of a business reorganizes it ás a partnership or a corporation. See Holmes v. Border Brokerage Co., 51 Wn.2d 746, 321 P.2d 898 (1958).

By-Products next contends that Rendering's only evidence of confusion of identity by the public was the receipt by Rendering's office manager of telephone calls and mail intended for By-Products, which should have been excluded because it was hearsay.

We disagree with By-Products' assertion that the misplaced telephone calls and misaddressed mail constituted hearsay. This evidence was offered to prove that the addressors had confused the two rendering businesses. Hearsay is defined as a statement, other than one made by the declarant while testifying at the trial or hearing, offered in evidence to prove the truth of the matter asserted. Moen v. Chestnut, 9 Wn.2d 93, 113 P.2d 1030 (1941); ER 801(c). The various suppliers and agencies that incorrectly addressed correspondence to Rendering were trying to communicate with By-Products and were not asserting they were confused between the two businesses. There is very little danger the evidence unreliably indicated that the addressors had confused the two businesses. See E. Cleary, McCormick's Evidence § 249, at 590-91 (2d ed. 1972). Improperly addressed mail has previously been relied on to establish trade name infringement, Holmes v. Border Brokerage Co., supra, and the court did not err in admitting this evidence in the instant case.

The plaintiff in a trade name infringement action must establish that defendant has infringed on the distinctive feature of his name in a manner that "tends to confuse, in the public mind" the two businesses. Seattle St. Ry. & Mun. Employees Relief Ass'n v. Street, Elec. Ry. & Motor Coach Employees, supra at 532; Foss v. Culbertson, 17 Wn.2d 610, 136 P.2d 711 (1943); Wine v. Theodoratus, 19 Wn. App. 700, 577 P.2d 612 (1978). Plaintiff introduced considerable evidence indicating that the public was confused by the name similarity. For instance, the Department [729]*729of Labor and Industries sent a statement regarding one of defendant's employees to plaintiff. An automobile repair firm billed plaintiff for work done on one of defendant's vehicles. A supplier shipped a specialized motor ordered by plaintiff to defendant. Plastic barrels ordered by plaintiff returned with defendant's name imprinted on them. These and many other instances of confusion established by plaintiff were sufficient to convince a fair-minded, rational person that the public was confused by the name similarity, and thus constituted substantial evidence to support the injunction. See Helman v. Sacred Heart Hosp., 62 Wn.2d 136, 381 P.2d 605 (1963).

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Puget Sound Rendering, Inc. v. Puget Sound By-Products
615 P.2d 504 (Court of Appeals of Washington, 1980)

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615 P.2d 504, 26 Wash. App. 724, 1980 Wash. App. LEXIS 2204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puget-sound-rendering-inc-v-puget-sound-by-products-washctapp-1980.