Roman Silversmiths, Inc. v. Hampshire Silver Co.

282 A.D. 21, 121 N.Y.S.2d 329
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 12, 1953
StatusPublished
Cited by5 cases

This text of 282 A.D. 21 (Roman Silversmiths, Inc. v. Hampshire Silver 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
Roman Silversmiths, Inc. v. Hampshire Silver Co., 282 A.D. 21, 121 N.Y.S.2d 329 (N.Y. Ct. App. 1953).

Opinion

Dore, J.

In this action by plaintiff, manufacturer and vendor of silver plated hollow ware, against defendants, engaged in the same business, for an injunction, damages and an accounting on the ground of claimed unfair competition and fraudulent representations, defendants Hampshire Silver Co., Inc., Julius [23]*23Krantz, Lew Goldwyn and Irwin Fenton (the latter an intervenor) appeal from a judgment against them entered after trial at Special Term granting plaintiff an interlocutory decree (1) restraining defendants from soliciting any customers of plaintiff who were such prior to June 19, 1950, and from using any photograph portraying an article sold by plaintiff; and (2) directing an accounting before a private referee for profits and damages.

Plaintiff and the corporate defendant are wholesalers selling their products, popular price silver plated hollow ware, such as platters, pitchers, tea and coffee sets and similar items, throughout the United States to department stores, jewelry stores, retailers and jobbers.

In 1946 plaintiff was organized by defendants Julius Krantz and Goldwyn; both had been engaged in the same business as plaintiff for many years, and each became owner of 50% of plaintiff’s stock. In 1947 plaintiff’s present president, Lieberman, became associated with plaintiff as a sales representative. On November 16, 1948, with money advanced by Lieberman, Goldwyn bought from Krantz for $40,000 Krantz’s 50% stock ownership in plaintiff. In January, 1949, Krantz organized defendant corporation and engaged in the manufacture and sale of the same line of merchandise as plaintiff. On June 19, 1950, Lieberman also bought out Goldwyn’s stock for an additional $30,000. In July, 1950, Goldwyn became associated with defendant Hampshire Silver Co., Inc.

While defendant Goldwyn was still a stockholder of plaintiff, plaintiff started this suit against Hampshire and Krantz. In the course of the litigation, in May, 1949, a stipulation was made by the parties whereby defendants agreed not to make reproductions of plaintiff’s photographs without plaintiff’s consent and not to offer their products as plaintiff’s products; it was also stipulated that whereas the then defendants alleged they were not using style numbers used by plaintiff but numbers consisting of four digits only, the last two of which were similar to plaintiff’s numbers, defendants stipulated to use only such style numbers indicated by four digits; it was further agreed that if defendants violated any of the covenants therein made, plaintiff could apply to the court for an order; and prosecution of the action was suspended but could be renewed on five days’ notice.

When Goldwyn sold out to Lieberman, those two made an agreement dated June 19, 1950, which provided inter alia that [24]*24Goldwyn, seller, might make an announcement to the trade of terminating his connection with plaintiff and of his new connection by advertisement in the trade press and notice by direct mail provided he inserted a separate notice as to his former connection and allowed ten days to intervene between the notice of his former connection and his new connection. It was also agreed that Goldwyn, as seller, should not be prohibited from manufacturing molds similar to those owned by Roman or from continuing to use any molds now in existence in any partnership or corporation that Goldwyn acquired an interest in “ even if the same are exact duplicates of ” Roman’s molds. A clause with regard to the use of photographs or stock numbers of Roman expressly provided that the seller, Goldwyn, should not be precluded from continuing to use stock numbers or photographs now in use by any partnership or corporation in which he acquired an interest regardless of their similarity to Roman * stock numbers or photographs.”

In a comprehensive decision, the learned trial court held that there was nothing secret, exclusive or unique in plaintiff’s methods or processes; that defendants had not copied any list of plaintiff’s customers nor had they taken with them any of plaintiff’s molds, dies or tools; that they had made no covenant not to engage in the same business in competition with plaintiff or not to use in such competition the knowledge they gained while with plaintiff; that it was defendants’ clear legal right, and not in any way an invasion of any legal right of plaintiff,' to engage in such business; and that they had necessarily taken with them the knowledge they had gained when associated with plaintiff. The court also held that there was no evidence that any article sold by plaintiff had become identified in the public mind as products exclusively of plaintiff; that plaintiff had failed to show any proprietary right with respect -to the form of any article it sells; and that plaintiff was not entitled to any relief merely because defendant Hampshire sold at lower prices products similar to plaintiff’s articles in size, shape, design and decorative detail. He further held that plaintiff had no proprietary right in particular numbers and that there is nothing unique or distinctive in the numbers used. With regard to eight of ten of plaintiff’s employees who ceased their employment with plaintiff and became associated with Hampshire as soon as Hampshire started business, the court held that there was no evidence that the. defendants had enticed such employees -from plaintiff by any force, fraud, duress or misrepresentations; that [25]*25defendant Hampshire had merely represented that it was willing to employ them; and, as they left without breaching any contract with plaintiff, he held there was no actionable wrong, and that establishment in such respect of plaintiff’s claim would stifle free enterprise and cancel out advantages gained by organized labor. He also said that the rule in Beardsley v. Kilmer (236 N. Y. 80, 90) rejects plaintiff’s doctrine. That case held ‘ ‘ that the genesis which will make a lawful act unlawful must be a malicious one unmixed with any other and exclusively directed to injury and damage of another ” (italics ours) (see, also, Amer. Bank & Trust Co. v. Federal Bank, 256 U. S. 350, 358). Relying, however, on Von Bremen v. MacMonnies (200 N. Y. 41), the trial court enjoined defendants from soliciting business from customers of plaintiff.

With regard to the photographs, he ruled that as they were marked plainly with the name Hampshire Silver Co., Inc.” their use was not an attempt to palm off defendants’ goods as plaintiff’s; however, on the ground that the photographs initially used by defendants selling their products were duplicates of or made from photographs of plaintiff’s products and actually portrayed articles sold by plaintiff, the court held that this was a case of falsely ” representing that defendant Hampshire had and was prepared to sell the identical articles which plaintiff sold; and, accordingly, he enjoined the use of any photograph portraying an article sold by plaintiff.

Plaintiff does not appeal from the judgment entered nor did it take any exception to any of the court’s findings or conclusions or ask that any be reversed or in any way modified.

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Cite This Page — Counsel Stack

Bluebook (online)
282 A.D. 21, 121 N.Y.S.2d 329, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roman-silversmiths-inc-v-hampshire-silver-co-nyappdiv-1953.