Shaver v. Heller & Merz Co.

108 F. 821, 65 L.R.A. 878, 1901 U.S. App. LEXIS 3827
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 29, 1901
DocketNo. 1,474
StatusPublished
Cited by75 cases

This text of 108 F. 821 (Shaver v. Heller & Merz Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaver v. Heller & Merz Co., 108 F. 821, 65 L.R.A. 878, 1901 U.S. App. LEXIS 3827 (8th Cir. 1901).

Opinions

SANBORN, Circuit Judge,

after stating the case as above, delivered the opinion of the court.

May a court of equity lawfully enjoin one from using the word “American” to sell the goods of one manufacturer as those of another to the damage of the latter and the deceit of the purchasers? This is the real issue which this case presents. It arises out of this state of facts: The appellee is a corporation which succeeded in 1889 to the business of manufacturing and selling bluing which had been established in the state of New Jersey by Heller & Merz in 1869. In 1872 the predecessors of the appellee put upon the market bluing of their manufacture in small round balls under the name “American Ball Blue,” and from that time until 1898 they continued to make and sell this form of bluing under this name. By energy,, enterprise, and perseverance they established a large demand for, and a lucrative trade in, this specific article of their manufacture. In 1898 there were many different names used to- distinguish the origin or ownership of the various bluings upon the market in the form of balls. Among these were the “American Ball Blue” of the appellee, the 'National Ball Blue,” the “Royal Ball Blue,” “Saber’s Ball Blue,” and “Fischer’s Ball Blue.” The article made by the ap-pellee became known to the trade by its name, quality, and character, and it was generally ordered, bought, and sold by its title “American Ball Blue.” No one but the appellee had ever made or sold any bluing under this name, and the appellee’s use of it had been continuous, notorious, and exclusive. In 1897 the appellants bought the business of a firm of soap makers at Cedar Rapids, in the state-of Iowa, styled G-. M. Olmsted & Co.. Olmsted & Co. had for many [823]*823years purchased of the appellee bluing of its manufacture styled “American Wash Blue,” but they had never bought or sold the American ball blue. In the early part of the year 1.898 the appellants bought bluing made by others than the appellee, and very properly issued notices to the trade that after May 1,1898, the “American Wash Blue” which their predecessors, Olmsted & Co., had been selling, would be succeeded by the “Balóme Laundry Blue.” But in July of that year, after an effort to sell the Salome blue for two months, their cupidity seems to have overcome their honesty, and they proceeded to solicit purchasers, and to make sales of bluing not made by the appellee at greatly reduced prices, under the names “American Ball Blue” and “American Wash Blue.” In their correspondence they called these names their brands, and styled themselves “Manufacturers of American Ball Blue, American Wash Blue,”' although they never made any bluing of any kind, and never purchased any of these articles which they pretended to sell. Upon the packages in which they shipped the articles which they sold they ■placed their own names and their residence, Cedar Itapids, Iowa, and by colors and in other ways differentiated the dress of their goods 'from that of those manufactured by the appellee. But, as the appellee’s bluing was generally ordered and sold by correspondence and by its names, these differences in the dresses of the packages did not prevent, and cau’not prevent, the fraud and deceit which the appellants perpetrate by the use of these names, and by soliciting orders for and selling (heir goods under them. The result of this course of action on the part of the appellants was that they diverted to themselves a large portion of the trade of the appellee in the West, and reaped the benefit of the established reputation of its goods.

The history of the American wash blue differs to some extent from that of the American ball blue. The predecessors of the ap-pellee applied the former name in 1874 to bluing of their manufacture in the form of lozenges packed in small cylinders, and proceeded to sell it. From 1878 to 1897 the predecessors of the appellants, Pomeroy & Olmsted and G. M. Olmsted & Co., purchased this article from the appellee and from its predecessors, and sold it from their place of business at Cedar Itapids, in the state of Iowa. They advertised this article of bluing in connection with their* advertisements of the soaps they were selling, and at their request the manufacturers of the bluing, in addition to putting upon the packages their trade-mark, which was (.he letter “U” surrounded by a triangle and (he name of their factory, “American Ultramarine Works,” placed the names' of Pomeroy & Olmsted and G. M. Olmsted & Co. thereon. During .five years of this term G. M. Olmsted & Co. bought the Americ.au wash blue of the Consolidated Ultramarine Company, Limited, but that company was a distributer for the appellee and other manufacturers, and the bluing was made and packed by the ap-pellee or its predecessors during all this time. The customers who purchased of Pomeroy & Olmsted and of G. M. Olmsted & Go. knew the bluing, its character, and its name, but they did not know who manufactured it, and supposed Pomeroy & Olmsted or G. M. Olmsted & Co. to be its manufacturers. When the appellants- purchased the [824]*824business of G-. M. Olmsted & Co., they bought its good will, and they insist that they thereby became entitled to use the name “American Wash Blue” upon any bluing which they may buy and sell, whether it is manufactured by the appellee or not. The facts which condition this claim were stated more at length and were carefully considered by the court below in its opinion in Heller & Merz Co. v. Shaver, 102 Fed., at pages 882, 886. That court came to the conclusion that the appellants had no better right to use the name “American Wash Blue” to palm off the goods of other manufacturers as those made by the appellee than G. M. Olmsted & Co. had, and that, the latter firm stood in such a fiduciary relation to the appellee that they could not be permitted to take such action. It held that the good will of the business established under the name “American Wash Blue” was the property of the appellee. These conclusions are, in our opinion, well founded in fact and in law. The brand “American Wash Blue” was conceived and applied to their manufacture by the predecessors of the appellee. The excellence of the article, and the introduction which the appellee gave it or induced Olmsted & Co. to give it, by the character and price of the bluing it furnished, established the trade in it, and gave that trade its value. Purchasers in the trade and the public came to know, to demand, and to buy the appellee’s manufacture by this brand. The inevitable result is that the good will of this trade became the appellee’s property, which neither Olmsted & Co. nor their successors could lawfully lead away from it by fraud or falsehood. One does not lose the good will of his trade in an article of his manufacture by placing upon it the names of his customers who are engaged in selling it, nor by the fact that the consumers know, only the name and excellence of the article, and neither know nor care who makes it. Brewery Co. v. Powell [1897] App. Cas. 710, 716; Lichtenstein v. Goldsmith (C. C.) 37 Fed. 359.

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Bluebook (online)
108 F. 821, 65 L.R.A. 878, 1901 U.S. App. LEXIS 3827, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaver-v-heller-merz-co-ca8-1901.