Railroad Salvage of Conn., Inc. v. Railroad Salvage, Inc.

561 F. Supp. 1014, 219 U.S.P.Q. (BNA) 167, 1983 U.S. Dist. LEXIS 17855
CourtDistrict Court, D. Rhode Island
DecidedApril 11, 1983
Docket81-0365 S
StatusPublished
Cited by17 cases

This text of 561 F. Supp. 1014 (Railroad Salvage of Conn., Inc. v. Railroad Salvage, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Railroad Salvage of Conn., Inc. v. Railroad Salvage, Inc., 561 F. Supp. 1014, 219 U.S.P.Q. (BNA) 167, 1983 U.S. Dist. LEXIS 17855 (D.R.I. 1983).

Opinion

OPINION

SELYA, District Judge.

The plaintiff, spurred by a desire to salvage the good repute of its corporate name, instituted this action, pursuant to § 43(a) of the Lanham Act, 15 U.S.C. § 1125(a), and *1016 under common law trademark and trade name infringement, attempting thereby to punch the defendant’s ticket, as it were. The complaint seeks injunctive and ancillary relief only; the plaintiff wants defendant to scrap the use of the name “Railroad Salvage”. No claim is made for money damages or loss of profits. The matter is presently before the Court on the plaintiff’s motion for summary judgment. Tracking this motion requires that the Court traverse the junkyard 1 of trademark and trade name law. Before essaying this task, however, some description of the litigants and of their relative stations in life appears warranted. 2 All aboard!

ON THE TRAIN TO SUCCESS

The story of the plaintiff is as American as Casey Jones. 3 Some thirty-five years ago, the plaintiff’s founder, Reuben W. Vine, borrowed one hundred dollars and began selling items out of a storefront emblazoned with the appellation “Freight Salvage.” In those early years, Vine purchased undeliverable goods from railroads and trucking companies and sold this excess baggage to consumers at fares representing simultaneously a substantial discount to the purchaser and a substantial profit to the vendor. The venture proved sufficiently remunerative that Vine, several years hence but well before the defendant left the depot, rechristened the business “Railroad Salvage” and incorporated it in Connecticut as “Railroad Salvage of Conn., Inc.” This took place in 1965; its headquarters was then located in Meriden, Connecticut. Affidavit of Reuben W. Vine ¶¶2, 4 (hereinafter “Vine Affidavit”).

From these humble beginnings, Vine built up a head of steam and the corporation grew into a multi-million dollar business. As the train of events continued, the company no longer limited itself to purchasing undeliverable goods, but actively sought out merchandise sold in bankruptcy liquidations and discontinued or overstocked merchandise from more conventional sources. In pursuit of appropriate wares, the plaintiff now contacts possible suppliers throughout the United States; in turn, firms will contact the plaintiff when they believe they have merchandise suitable for the- plaintiff’s distribution requirements. Exhibit B, Vine Affidavit.

Vine has also expanded the retail portion of the business well beyond the storefront. Plaintiff operates a freight warehouse in Connecticut which supplies goods to four company stores (East Windsor, West Haven, and Groton, Connecticut and Turners Falls, Massachusetts). First Affidavit of Donald Roberge, ¶4 (hereinafter “Roberge I”).

The focal point of this litigation is the Groton emporium, which is conveniently located only a few miles from the Rhode Island state line. To maximize sales and to take advantage of the Rhode Island market, the plaintiff advertises heavily in Rhode Island media. 4 This promotion includes advertisements placed in daily newspapers of essentially statewide circulation within Rhode Island; and also includes the airing of television commercials on local Providence-area television stations, with'sometimes exasperating echolalia. Plaintiff’s exploitation of both print and electronic media prominently features the name “Railroad Salvage.” Roberge I ¶ 5 and Ex *1017 hibit A attached thereto. This media blitz has generated an impressive track record; sales were recorded of approximately four million dollars for the Groton store in fiscal year 1980. The plaintiff estimates that 40% of its customers at Groton are Rhode Islanders. Roberge I ¶ 7.

THE OTHER SIDE OF THE TRACKS

Bernard Werther, on the other hand, seemingly wanted to take the short ride down the main line to success. To this end, Werther became an entrepreneur and opened his own business. As compared to the conductor of plaintiff’s enterprises, he can only be characterized as a mere trainee. In December of 1980, not more than a few weeks after a story about the plaintiff’s swift rise from rags to riches was prominently displayed in the Providence Sunday Journal, Werther (his hopes apparently hoisted by plaintiff’s accelerated time-table) incorporated “Railroad Salvage, Inc.” in Rhode Island. He was sole shareholder and its general manager. 5 Defendant’s Answers to Plaintiff’s Interrogatories (hereinafter “Interrogatories”), No. 5. The defendant’s original railhead was located at 893 Post Road, Warwick, Rhode Island; later, the defendant chugged along to its present address, 22 Roseland Avenue, Warwick, Rhode Island. Id.

The defendant has three main lines of enterprise. As gauged by the Court, approximately 30%-40% of its business involves the assembling and jobbing of jewelry products. The sale of general merchandise at wholesale to flea market operators accounts for another 20% of the business. The remainder involves acting as a sales agent and wholesaler. As a spur line, the defendant generates approximately l%-2% of its business from retail sales of pocket T-shirts and paint. 6 Interrogatories, Nos. 1, 2, 3, 10 and 13.

In contradistinction to the plaintiff, the defendant has done only minimal advertising. The defendant did, however, place an advertisement in “Women’s Wear Daily” announcing that it would purchase closeouts. Its other ties to media advertising are scant, and are detailed in discovery. Interrogatories, Nos. 8, 9. Although the record is not a model of clarity, this Court will assume arguendo that only the defendant’s offer to purchase close-outs prominently displayed the name “Railroad Salvage”. Interrogatories, Exhibit A.

The defendant has operated in a much more geographically limited area than does the plaintiff. The defendant has, however, used the name “Railroad Salvage” in business transactions in New York, Rhode Island, New Jersey, California, Massachusetts, Maryland, and Ohio. Interrogatories, No. 17. All of its retail sales took place in Rhode Island; it has not done business in Connecticut. Id.; see also Interrogatories, No. 2.

A DOWN-THE-LINE SYNOPSIS

The plaintiff is a large, successful retailer which has ridden the monorail to prosperity. Its tracks are found throughout the United States. It is apparently well-known by companies desiring to liquidate inventories of goods not merchantable in more commonplace ways. While plaintiff does not conduct a retail business within Rhode Island, it has received extensive exposure therein and does a significant amount of traffic with Rhode Islanders.

In the jargon of the switchyard, the plaintiff is a locomotive, while the defendant is a dolley. The defendant’s business *1018 appears to be moderately successful; it has some interstate contact.

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Cite This Page — Counsel Stack

Bluebook (online)
561 F. Supp. 1014, 219 U.S.P.Q. (BNA) 167, 1983 U.S. Dist. LEXIS 17855, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railroad-salvage-of-conn-inc-v-railroad-salvage-inc-rid-1983.