Sanford-Day Iron Works v. Enterprise Foundry & Machine Works

130 Tenn. 669
CourtTennessee Supreme Court
DecidedSeptember 15, 1914
StatusPublished
Cited by2 cases

This text of 130 Tenn. 669 (Sanford-Day Iron Works v. Enterprise Foundry & Machine Works) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanford-Day Iron Works v. Enterprise Foundry & Machine Works, 130 Tenn. 669 (Tenn. 1914).

Opinion

Me. Justice Gbeen

delivered the opinion of the Court.

This bill was filed to restrain defendant Enterprise Foundry & Machine Works from unfair competition in the use of the name “Whitney” as applied to car wheels manufactured by it. Complainant, Sanford-Day Iron Works, claimed the right to the use of this name in connection with such wheels, and sought the protection of this right by its bill.

Proof was taken, and the chancellor rendered a decree enjoining defendant Enterprise Foundry & Machine Works from using the name “Whitney,” except in a certain manner set out in the decree. The court of civil appeals reversed the chancellor’s decree and dismissed the bill.

A petition for certiorari was filed which has been granted, and the case has been heard in this court.

Criticism is made as to the form of the petition for certiorari, and a motion to dismiss is filed because it is said the petition does not sufficiently state the ease. [672]*672The petition is, indeed, quite meager, but is attached to a brief, and the brief made part thereof, and the ’brief contains a full statement of the case. By adopting the brief as a part of the petition, we think the petitioner has sufficiently complied with the rules of this court as to petitions for certiorari. This practice, while it may sometimes cause inconvenience to the court, nevertheless complies with the statute, and we have so far adopted no rule against it. The brief referred to and adopted in the petition was an original brief made for this court, attached to the petition, and filed therewith.

In 1847, A. Whitney, of Philadelphia, began the manufacture of car wheels. Under the name of “A. Whitney & Sons” and the “Whitney Car Wheels Company” this business was continued until 1896. After the death of the original A. Whitney the foundry was operated by his sons. Asa W. Whitney, a grandson of the original A. Whitney, was employed 'by this concern for a good many years prior to 1896, when its business ceased. The said Asa W. Whitney is now in the employ of defendant Enterprise Foundry & Machine Works, as will be hereafter noted.

In 1903 the complainant, Sanford-Day Iron Works, operating a foundry at Knoxville, desiring to go into the business of manufacturing car wheels, and to obtain the services of some one familiar with that business, got into correspondence with Asa W. Whitney. The correspondence resulted in Asa W. Whitney coming to Knoxville, and the complainant began the man-[673]*673nfacture of car wheels, or mining car wheels, nnder his supervision. The first employment of Asa W. Whitney hy complainant was temporary.

It seems that the Whitney concerns at Philadelphia, heretofore referred to, had manufactured a very superior wheel, and their product enjoyed a valuable reputation in the trade. Mr. Sanford, the president of complainant company, learned from Asa W. Whitney that the original Whitney concern had suspended business, and negotiations were had between Sanford and Asa W. Whitney, the precise details of which are now in dispute. It resulted that complainant company took up the matter with James S. Whitney, of Pennsylvania, who was represented to be entitled to the good will of the old Whitney foundry, and to the use of the name “Whitney,” in connection with car wheels, and entered into a contract with the said James S. Whitney for this good will and the use of this trade name. James S. Whitney was the father of Asa W. Whitney.

This agreement was executed on the 22d day of March, 1904, and under its terms the Sanford-Day Iron Works acquired the good will of “Whitney Car Wheel Works” and “A. Whitney & Sons,” and the right to the exclusive use of the names “Whitney Car Wheel Works,” “A. Whitney & Sons,” and “Whitney,” in connection with the foundry or car wheel business. It was also provided in this contract that complainant company should employ Asa W. Whitney to supervise the manufacture of wheels, and to do other things in its [674]*674plant, at a designated compensation, for a period of five years. By the terms of the contract, complainant company acquired certain equipment belonging to the old Whitney concern, a lump sum of money was paid' and agreed to 'be paid to James S. Whitney, and a stipulated royalty, and it was further agreed that complainant company might within five years from the date of this contract discontinue the royalty, and, upon the payment of an additional amount in stock of the company, acquire the good will of the Whitney business and the right to use in perpetuity the Whitney name in connection with its wheel business. The contract contained other details not necessary to be here enumerated. It is to be noticed that it was a tripartite contract, signed by James S. Whitney, Asa W. Whitney and Sanford-Day Iron Works.

Pursuant to this contract, the complainant company- gave employment to Asa W. Whitney for five years, and within the five-year term exercised its option and purchased from James S. Whitney, and his wife, who had meanwhile become his assignee, the good will of the old Whitney business, and the perpetual right to the use of the names “A. Whitney & Sons,” “Whitney Car Wheel Works,” and “Whitney.”

Asa W. Whitney was not a party to this second contract. At the expiration of the five years for which he was employed under the first contract, his connection with complainant company was severed, and very shortly thereafter he went into the service of defendant Enterprise Foundry & Machine Works.

[675]*675After negotiating the first contract with the Whit-neys, the complainant company entered extensively into the manufacture of mining’ car wheels. It advertised that it was the successor to the old Whitney concern, that Asa W. Whitney was in its employ, and it advertised its wheels as the Whitney wheels. Complainant has spent considerable sums of money in developing and advertising its car wheel business, using the name “Whitney” in connection therewith as a trade name, and has built up quite a large and profitable custom in these wheels.

After Asa W. Whitney left complainant he got in touch with the Enterprise Foundry & Machine Works, and was employed by it. Mr. Daniel, the president of the latter company, testifies that his company was operating a foundry business at Bristol; that the -business had undergone some vicissitudes; and that it was thought desirable to enlarge it. He had talked with Mr. Sanford, and perhaps others, and had understood that the manufacture of mining ear wheels was profitable, and it was decided that defendant company would add that feature to its business. Accordingly, after the services of Asa W. Whitney were secured by defendant company, the connection of the latter with said company was extensively advertised, the said company 'began the manufacture of wheels under the supervision of Asa W. Whitney, and pushed the market of these wheels with a great deal of energy.

Defendant company advertised said wheels which it manufactured as “A. W. Whitney’s self-oiling mining [676]*676car wheels;” it advertised that its wheels were of Whitney quality. On certain of its advertisements in hold type appeared the legend, “Whitney means a certainty.” One of its agents in Birmingham advertised that he handled “Whitney wheels,” and in its correspondence and catalogues, and in various other ways, defendant company made use of the word “Whitney” in an effort to promote the sale of its wheels.

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Related

Neuhoff, Inc. v. Neuhoff Packing Co.
167 F.2d 459 (Sixth Circuit, 1948)
Sanford-Day Iron Works v. Interprise Foundry & Machine Co.
138 Tenn. 437 (Tennessee Supreme Court, 1917)

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130 Tenn. 669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanford-day-iron-works-v-enterprise-foundry-machine-works-tenn-1914.