Rockowitz Corset & Brassiere Corp. v. Madame X Co.

222 A.D. 359, 226 N.Y.S. 293, 1928 N.Y. App. Div. LEXIS 8065
CourtAppellate Division of the Supreme Court of the State of New York
DecidedJanuary 13, 1928
StatusPublished
Cited by1 cases

This text of 222 A.D. 359 (Rockowitz Corset & Brassiere Corp. v. Madame X Co.) 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
Rockowitz Corset & Brassiere Corp. v. Madame X Co., 222 A.D. 359, 226 N.Y.S. 293, 1928 N.Y. App. Div. LEXIS 8065 (N.Y. Ct. App. 1928).

Opinion

Martin, J.

The plaintiff, at Special Term, was granted an interlocutory judgment restraining the defendants from using the trade name and trade-mark Madame X ” and requiring them to account for profits.

In 1911 and 1912 Abe Rockowitz, plaintiff’s predecessor, registered the trade-mark, his concern having commenced business in 1911. It was adjudicated a bankrupt in October, 1914, and the business and tangible assets were sold.

. Subsequently there occurred transfers of the trade-marks and good will on which plaintiff relies, the last one having been made directly to plaintiff in November, 1924. The business was never resumed after June, 1916, and defendants point to the absence of actual, continued and legitimate use of the trade-mark, asserting that it was abandoned, and that the attempted assignment eight and a half years after the sale of the tangible assets of the bankrupt was merely a part of a scheme to appropriate to plaintiff the business which had meanwhile been built up by the defendants.

The plaintiff’s predecessors took no action toward reviving the old bankrupt business until two years after defendant had innocently and without knowledge of the previous use of the mark by plaintiff adopted it and established a most extensive worldwide business, in connection with which millions of dollars were spent in advertising the trade-mark “ Madame X ” in the sale of their own merchandise.

There is no evidence of similarity between the defendants’ mer[361]*361chandise, consisting principally of Madame X corsets, and the old style corset manufactured by Bockowitz. His was constructed of steel and fabric. Defendants’ was a rubber garment, the success of which was due to an entirely new idea in connection with corsets, to which reference will be made later. The plaintiff was incorporated in November, 1924, and apparently had no substantial clientele or following in the trade, but even if it did, there could be no confusion by prospective purchasers of corsets as to the merchandise sold.

In November, 1922, the defendants commenced manufacturing corsets and girdles known as the “ Madame X Beducing Girdle.” There was acquiescence in said use and no objection thereto until the institution of this suit in January, 1925, by which time the idea of a reducing corset had become popular and defendants’ business had grown to huge proportions.

The defendants assert that the plaintiff is a dummy organized for the sole purpose of maintaining this action, and that the litigation is merely a speculation toward unlawfully exacting money from the defendants.

The plaintiff alleges that large sums of money have been expended in advertising, but in the bill of particulars it is unable to state even approximately the amount of the “ substantial sums ” expended by it and its predecessors in the advertising referred to in the complaint.

The plaintiff’s case must stand or fall on the testimony of Joe and Abe Bocke or Bockowitz. Joe Bockowitz was forced to admit that for practically fifteen years his occupation has been that of a taxicab chauffeur; and the attempt to show that the original business was very profitable was a complete failure in the light of the bankruptcy in 1914. It appears that Joe Bocke became interested in the corset business after the bankruptcy sale. His connection therewith seems to have terminated in September, 1915, when he instituted an action in a fictitious name against his brother with the result that a receiver was appointed. His concern was the S. O. S. Corset Company. Though it is said to have had many agents, he was unable to tell the name of any of them. It is his contention that there never was any abandonment of the trade name or mark, but rather an intention to resume the corset business when the litigation was settled.

Nevertheless, his employment appears to have continued as taxicab driver, although he says he was in the real estate business. He testified that he received from plaintiff corporation $15,000 for the assignment of his alleged rights to the trade-mark, but on cross-examination he was unable to remember whether he received [362]*362$10,000 or $8,000, and finally he thought it was at least $5,000, which he says he lost in betting on the race horses. He did not place any of the money in a bank, nor did he' ever have a bank account. Though he claimed to have been given all of the preferred stock of the plaintiff corporation, he was in receipt of $50 a day for attending at court as a witness, having received $300 up to that time. He knew nothing about the structure of a corset and rarely appeared in the place of business of the S. O. S. Corset Company, although he was supposed to be its shipping clerk.

His brother, Abe Roekowitz, the other witness upon whom the plaintiff must principally rely, he referred to as a “ cheat,” who had done his best to deceive him and take the business away from him, it being claimed jhat the title to the S. O. S. Corset Company was allowed to go into the name of Abe Roekowitz solely for the purpose of avoiding creditors and escaping the payment of judgments entered or expected in a number of outstanding suits; and on cross-examination there was produced an affidavit in which he avers: “ I furnished the moneys for the purchase of that patent and to establish the business in the City of New York, and obtained the receipts which are the evidence of such purchase in the name of Abraham Rocke by his advice as a matter of precaution to avoid seizure and sale of the property upon claims then in litigation against me but without any intent on my part to defraud my creditors.”

In so far as material, the testimony of this witness was shown to be false in nearly every instance.

Abe Roekowitz testified to events which occurred during the period from 1911 to 1916. He referred to the business as pros-t perous and as having a number of agents and employees, but was unable to name any of the agents or employees. He claims to have used the name “ Madame X ” in relation to hose supporters and later in relation to corsets, the latter from about 1912 to September, 1914, when the involuntary petition in bankruptcy was filed followed by an adjudication in bankruptcy. The reasons given by him for the bankruptcy were not supported by the facts.

At a sale the receiver in bankruptcy sold Parcel F,” including a patent, as well as all right, title and interest, if any, of the bankrupt and the receiver to the trade-mark and trade name, and a lawyer named Dorfman was the successful bidder for same. A controversy arose as to whom Dorfman represented. Abe and Joe Roekowitz each claimed to have provided the purchase money for the good will and trade name of Madame X Manufacturing Co., Inc., as appears from an order made after a referee in bankruptcy had taken testimony as to what had been paid by Dorfman.

In January, 1915, Abe Roekowitz filed a certificate which stated [363]*363he was the owner and proprietor of the business known as the S. O. S. Corset Company; and it appears that the business continued in a more or less desultory manner until the trial of the action between the brothers, referred to above, and known as the Gritz suit, in June, 1916, when it was adjudicated that Joe Rockowitz had title to the business, it being decreed: That the defendant, Abraham Rocke has by fraud and in breach of trust secured apparent, nominal title and ownership of the property herein described and the business of the S. O. S. Corset Company from the defendant Joseph Rockowitz.”

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Bluebook (online)
222 A.D. 359, 226 N.Y.S. 293, 1928 N.Y. App. Div. LEXIS 8065, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rockowitz-corset-brassiere-corp-v-madame-x-co-nyappdiv-1928.