Sample, Inc. v. Porrath

41 A.D.2d 118, 341 N.Y.S.2d 683, 178 U.S.P.Q. (BNA) 365, 1973 N.Y. App. Div. LEXIS 5106
CourtAppellate Division of the Supreme Court of the State of New York
DecidedFebruary 16, 1973
StatusPublished
Cited by11 cases

This text of 41 A.D.2d 118 (Sample, Inc. v. Porrath) 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
Sample, Inc. v. Porrath, 41 A.D.2d 118, 341 N.Y.S.2d 683, 178 U.S.P.Q. (BNA) 365, 1973 N.Y. App. Div. LEXIS 5106 (N.Y. Ct. App. 1973).

Opinion

Goldman, P. J.

In this action appellants, The Sample, Inc. and The Sample of Buffalo, Inc., appeal from a judgment denying their application for a declaratory judgment permitting them to use the trade name Sample ” in connection with a proposed new retail outlet in the Town of Wheatfield, Niagara County, New York. The. order denying appellants this requested relief granted the respondents, Theresa Porrath, Samuel Porrath, Dorothy Gellman and Samuel Gellman, copartners doing business under the firm name of The Sample Shop, a permanent injunction restraining appellants from using the name Sample ” in any business operation to be conducted within the City of Niagara Falls and the Towns of Niagara, Wheatfield, Lewiston and Porter in the County of Niagara.

The history of the business activities of the parties, their methods of operation, the territorial markets they serve and much pertinent data were fully presented to the trial court. It appears from the proof that the Buffalo based “ The Sample, Inc.” was established in 1929 and has advertised in Buffalo papers under the trade name ‘ The Sample ’ ’ since its founding. In its early days it specialized in the sale of women’s apparel but over the years has expanded greatly the variety of merchandise offered for sale and now includes men’s as well as women’s clothing and in addition thereto operates other departments such as jewelry, ladies’ shoes and fabrics, children’s wear and many other commodities. The Sample, Inc.” opened its first branch store outside of Buffalo in the City of Lockport, Niagara County, in 1946 and now operates in nine locations in Western New York, two of which are in Niagara County. Each branch store is a separate, wholly-owned subsidiary corporation. The parent corporation had net sales ixr 1971 in excess of $10,600,000 with more than $1,350,000 produced by the two Niagara County stores. Over [120]*12061,500 persons hold charge accounts with “ The Sample, Inc.” and 7,200 of these customers live in Niagara County. Appellants have spent $2,165,461 for advertising under the name ‘ ‘ The Sample ”, spending almost as much in 1971 as respondents have in the last 23 years. This advertising has appeared primarily in two large Buffalo newspapers, which have a circulation of over 25,000 in Niagara County and appellants have also advertised extensively in the LocJcport Union Sun and Journal and the Tonawanda News, both of which are largely distributed throughout Niagara County.

Respondents operate two stores, the first of which was opened in 1934 in Niagara Falls under the name 11 Sample Dress Shop ’ ’. These stores which had net sales of $678,000 in 1971 stock primarily women’s apparel and do not offer for sale such items as men’s wear and the various other merchandise which is sold in “ The Sample, Inc.” stores. Since 1948 respondents have spent a total of $311,000 in advertising, almost entirely in the Niagara Falls Gazette. The primary market of the two stores is in the City of Niagara Falls and the four towns surrounding the city.

The store which appellants desire to open would be located in the Summit Park Mall in the Town of Wheatfield in Niagara County, one and a half miles from one of respondents’ stores. They propose to name it “ The Sample Shop of Buffalo, Inc.”. Appellants have offered to call the store by any other name, which includes the word “ Sample ”, such as the Bunis (family name of principal stockholders) Sample Shop ”, or any reasonable and distinguishing name so long as it includes the word “ Sample ”. Appellants have demonstrated a willingness to select a name which will eliminate any conflict with respondents’ “ The Sample Shop ”.

An in-depth market survey by National Marketing Associates, Inc. was put into evidence by appellants. It indicates that women in the 18-50 years- age group who live within a five mile radius of the Summit Park Mall are more likely to associate the word “ Sample ” with a store operated by appellants than one owned by respondents. The market data contained in the survey clearly show that a -substantial majority of persons interviewed, when asked to identify a store operated under the names ‘ ‘ The Sample ” or “ Sample Shops ”, responded by indicating the store .owned by appellants.

The trial court found that respondents ’ name, ‘ ‘ The Sample Shop ”, has “ acquired a secondary meaning identifying in the minds of the public ” the two stores operated by respondents in the City of Niagara. Falls. It further found “ that the public [121]*121would be confused and deceived by plaintiffs’ use of the word ‘ Sample ’ ” and that there “ is a likelihood of dilution of the distinctive quality of defendants’ trade name by plaintiffs’ use of the word ‘ Sample ’ as a part of a corporate or assumed name ”. The trial court concluded from its findings that appellants are not entitled to judgment declaring their right to operate the new .store under the name The Sample of Buffalo, Inc.” and granted judgment to respondents restraining and enjoining appellants from the ‘ ‘ use of the word ‘ Sample ’ as part of a corporate or assumed name”. We find this determination to be against the weight of the evidence.

The preponderance of the evidence supports appellants’ contention that a majority of potential customers of both parties are more likely to associate the word ‘ ‘ Sample ’ ’ with a store operated by appellants rather than one operated by respondents. The uncontradicted data of the market survey and the history of the business activities of both parties show that respondents’ business name has not acquired a secondary meaning and that the greater likelihood is that appellants’ name, “ The Sample, Inc.”, has gained such a secondary meaning in the minds of the purchasing public.

In the determination of the issue here presented, the overriding objective is to promote and protect the concept of commercial fairness. Unfair competition and trade-mark infringement are all unique in their particular factual patterns and each case should be decided ‘ ‘ on its facts ’ ’, and because of incompatibility there cannot be strict adherence to precedents (Dell Pub. Co. v. Stanley Pub., 9 N Y 2d 126,133).

The principle of commercial fairness is well enunciated by the United States Court of Appeals of the First Circuit in Food Center v. Food Fair Stores (356 F. 2d 775). In that case a Massachusetts retail supermarket carried on business under the name New England Food Fair”. It sought to enjoin the defendant, the nation’s fifth largest chain of grocery supermarkets operating in 15 States under the name ‘ ‘ Food Fair ’ ’, from operating under its name in the Massachusetts area. The District Court found that the plaintiff’s name had acquired a secondary meaning in greater Boston and to some extent in other parts of Eastern Massachusetts. In vacating the judgment of the District Court the Circuit Court said (p. 779) “ In attempting to apply principles and precedents to the facts of this case, we recognize at the outset that the field of protection of trade names is part of the wider domain of the law relating to unfair competition, where the overriding objective of courts and legis[122]*122latures is that of commercial fairness ”. As in the case at bar in the use of the word ‘ ‘ Sample ’ ’ the court found that the name “ Food Fair” was not of the strongest order of originality.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Fraga v. Smithaven Open MRI
6 A.D.3d 494 (Appellate Division of the Supreme Court of New York, 2004)
V.S. Distributors v. Emkay Trading Corp.
1 A.D.2d 350 (Appellate Division of the Supreme Court of New York, 2003)
Telford Home Assistance, Inc. v. TPC Home Care Services, Inc.
211 A.D.2d 674 (Appellate Division of the Supreme Court of New York, 1995)
Apollo Technologies Corp. v. Centrosphere Industrial Corp.
805 F. Supp. 1157 (D. New Jersey, 1992)
Buffalo Packaging Corp. v. Buff-Pac, Inc.
155 A.D.2d 877 (Appellate Division of the Supreme Court of New York, 1989)
Capitaland Heating & Cooling, Inc. v. Capitol Refrigeration Co.
134 A.D.2d 721 (Appellate Division of the Supreme Court of New York, 1987)
American Optical Corp. v. North American Optical Corp.
489 F. Supp. 443 (N.D. New York, 1979)
Allied Maintenance Corp. v. Allied Mechanical Trades, Inc.
369 N.E.2d 1162 (New York Court of Appeals, 1977)
Allied Maintenance Corp. v. Allied Mechanical Trades, Inc.
55 A.D.2d 865 (Appellate Division of the Supreme Court of New York, 1977)
Halpern v. Lomenzo
81 Misc. 2d 467 (New York Supreme Court, 1975)

Cite This Page — Counsel Stack

Bluebook (online)
41 A.D.2d 118, 341 N.Y.S.2d 683, 178 U.S.P.Q. (BNA) 365, 1973 N.Y. App. Div. LEXIS 5106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sample-inc-v-porrath-nyappdiv-1973.