Ransdell v. Sixth Street Food Store of Lexington, Inc.

120 N.W.2d 290, 174 Neb. 875, 137 U.S.P.Q. (BNA) 169, 1963 Neb. LEXIS 273
Nebraska Supreme Court·Decided March 1, 1963·No. No. 35343·Published·Cited by 1 cases

Opinion

White, C. J.

This is an appeal from the order of the district court sustaining a motion for summary judgment and dismissing the plaintiffs’ petition and action. It is an action brought by the plaintiffs as partners doing business in Lexington, Nebraska, as Sixth Street Locker and Grocery, to enjoin the defendant, Sixth Street Food Store of Lexington, Inc., from displaying and using a large sign reading “Sixth Street,” and from using the words “Sixth Street,” “Sixth Street Food Stores,” and “Sixth Street Food Stores of Lexington, Inc.,” or any combination thereof in the operation of its business on Seventh Street in Lexington, Nebraska.

We determine first what the issues actually were. [877] Plaintiffs- alleged, by their amended petition, that they had established and had been in business in Lexington since April of 1950; that they had conducted their business under the name of “Sixth Street Locker and Grocery,” and operated continuously on East Sixth Street; that they have, at all times, advertised and held themselves out to the public by this name; that it had become known to the general public of the trade area that the words “Sixth Street” and “Sixth Street Locker and Grocery” were a distinctive trade and business name belonging to the plaintiffs; and that said words had acquired a secondary meaning exclusively relating to the business in the trade area and community of Lexington, Nebraska. They alleged that they had built up and were enjoying a substantial business in the city of Lexington. It is then alleged that the defendant, “Sixth Street Food Stores of Lexington, Inc.,” became incorporated on August 27, 1958; and that at that time it knew that the plaintiffs used the name “Sixth Street Locker and Grocery,” and knew that the plaintiffs had used it continuously since April 1950. They alleged that the defendant began operation of its business on Seventh Street in Lexington; that it used, and continued to use the words “Sixth Street” and “Sixth Street Food Store” in the operation of its business; and that the defendant had a large sign over its place of business reading “Sixth Street,” and is generally holding, itself out to the public under the firm name and style of “Sixth Street Food Store.” The plaintiffs specifically alleged that the defendant by the use of said sign and said names intended to mislead and confuse the customers of the plaintiffs; that this use did confuse the customers of the plaintiffs and beguile them into dealing with the defendant under the belief that they were dealing with the plaintiffs; and that there would be a deception of the general public and the plaintiffs’ customers and a diversion of plaintiffs’ customers to the defendant’s place of business.

[878] The plaintiffs further alleged that subsequent to August 27, 1958, the date that the defendant became incorporated, the defendant filed a trade name registration certificate with the Secretary of State, made legal publication thereof, and it now claims the right to use the trade name “Sixth Street Food Store.” They alleged that this name is misleading and deceptive resulting in confusion in mail and shipments of merchandise, confusion of business accounts, and deception of the buying public into the belief that the defendant’s business was the plaintiffs. There are further allegations of irreparable injury and formal allegations which we do not deem necessary to repeat here. The plaintiffs further alleged that 2 days after the incorporation of the defendant about August 27, 1958, by letter, they advised the defendant of their objection to the use of these words and demanded that the defendant cease and desist from using them.

We go now to the defendant’s answer. It admitted the incorporation on August 27, 1958; admitted the mailing on August 29, 1958, of the letter from the plaintiffs demanding that it cease and desist; admitted that it filed a trade name registration with the Secretary of State on September 12, 1958, claiming the trade name “Sixth Street Food Store”; admitted that it operates its business on Seventh Street; admitted that it displays a large sign thereon reading “Sixth Street”; and admitted that it does hold itself out to the public as “Sixth Street Food Store.” It further generally denied the allegations of the plaintiffs’ petition; alleged that it has no intent to mislead or deceive by the use of these names; in substance, alleged that its right to use these names arises out of an assignment from companies or partnerships that had operated at North Platte and Ogallala for many years and had acquired the right to use the names “Sixth Street” and “Sixth Street Market”; alleged that said assignment was made on September 1, 1958; and [879] alleged that it was duly registered with the Secretary of State.

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Ransdell v. Sixth Street Food Store of Lexington, Inc., 120 N.W.2d 290, 174 Neb. 875, 137 U.S.P.Q. (BNA) 169, 1963 Neb. LEXIS 273 (Neb. 1963).

120 N.W.2d 290 (Ransdell v. Sixth Street Food Store of Lexington, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Ransdell v. SIXTH STREET FOOD STORE OF LEXINGTON.
120 N.W.2d 290 (Nebraska Supreme Court, 1963)