Shop-Rite Durable Supermarket, Inc. v. Mott's Shop Rite of Norwich, Inc.

377 A.2d 312, 173 Conn. 261, 202 U.S.P.Q. (BNA) 77, 1977 Conn. LEXIS 847
CourtSupreme Court of Connecticut
DecidedJuly 12, 1977
StatusPublished
Cited by14 cases

This text of 377 A.2d 312 (Shop-Rite Durable Supermarket, Inc. v. Mott's Shop Rite of Norwich, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shop-Rite Durable Supermarket, Inc. v. Mott's Shop Rite of Norwich, Inc., 377 A.2d 312, 173 Conn. 261, 202 U.S.P.Q. (BNA) 77, 1977 Conn. LEXIS 847 (Colo. 1977).

Opinion

House, C. J.

This is an appeal from a judgment of the Superior Court enjoining the defendants from the use of the term “Shop-Rite” in advertising in connection with their store in Norwich, including but not limited to the use of the term “Shop-Rite” on any signs advertising that store and any use of the term in the defendants’ advertisements in the Norwich Bulletin. They were also enjoined from displaying the term “Shop-Rite” appearing as a part of their trademark in any advertising in the Norwich Bulletin relating to their Norwich store. The injunction expressly did not apply to any store of the defendants other than the Norwich store and expressly excluded application to the sales of products bearing the defendants’ trademark within the Norwich store. 1

On the appeal, the defendants filed ten assignments of error. Since a number of these raise *263 issues which were not raised in the trial court or have not been briefed, we do not consider them here. Practice Book § 652; Pappas v. Pappas, 164 Conn. 242, 243, 320 A.2d 809. Those properly raised and briefed concern two principal questions: Was the injunction properly founded in law and in accord with a stipulation of the parties concerning the issues submitted to the court for determination? And was the judgment supported by the evidence submitted at the trial?

The court’s finding, which is not subject to any material correction, reveals the following basic facts: The plaintiff, Shop-Rite Durable Supermarket, Inc., conducts a supermarket grocery store in the city of Norwich. From its opening in 1960, the store has in all its advertising used the term “Shop-Rite” as a part of its name. The name “Durable” was placed in much smaller letters on the logo used in newspaper advertisements. “Durable” was a designation of location, because the store was located next to a store known as Durable Department Store. When that store went out of business in 1971, the word “Durable” was dropped from the logo and only the legend “Shop-Rite Supermarket” was used. This latter designation has been used in the plaintiff’s telephone book listing, by its vendors and suppliers, on its radio program over the local radio station, and the same designation appears on its stationery. Through the years when answering the telephone, the employees of the plaintiff have answered by saying, “Shop-Rite, *264 good morning,” or “afternoon” or “evening.” The Shop-Rite designation appears on the sign on the front of the plaintiff’s store.

Since the opening of the store in 1960, the plaintiff has conducted an extensive advertising program in the local newspaper, The Norwich Bulletin, at an annual cost of about $30,000. The store also sponsored an intensive radio advertising program including a regularly scheduled quiz program known as the “Shop-Rite Teletest,” in each case referring to itself as Shop-Rite Supermarket.

The defendant, Mott’s Shop Rite of Norwich, Inc., is a subsidiary of a larger corporation (hereinafter referred to as Mott’s). The latter, as a parent corporation, operates supermarket grocery stores in Connecticut and Massachusetts. Mott’s first made significant use of the “Shop Rite” trade name in 1964, in a Chicopee, Massachusetts, Mott’s store and has used the trademark “Shop Rite” since 1960. The trademark “Shop Rite” is owned by the Wakefern Pood Corporation which has licensed the defendants to use the trademark “Shop Rite” in Connecticut. Wakefern is not a party to the present case.

In July, 1971, the plaintiff became aware of the defendants’ intention to operate a supermarket in Norwich under the name of “Shop Rite” and wrote to them to advise that they had no right to use the name in the Norwich area and that the plaintiff would bring an action to enjoin the defendants from using the name. Nevertheless, in January, 1972, the defendants opened a Norwich store operating under the name “Shop Rite.” The plaintiff then brought the present action in March, 1972.

*265 The hriefs indicate that the parties had reached some agreement about the issues to be litigated, although no stipulation appears in the record or transcript. As articulated by counsel for the defendants, the questions before the trial court were whether they could use the name “Shop Rite” in advertising the name of their store and on the store sign. As asserted by the plaintiff, the parties were also at issue as to whether the defendants should be permitted to advertise using their brand name or using the word “Shop Rite” and assert: “The court did not prohibit the sale in the defendants’ store of products bearing the words Shop-Rite which is all the stipulation of the parties ever dealt with.” The judgment of the court was very limited and precise and did not prohibit the defendants from selling products bearing their Shop Rite trademark. So far as the record discloses, the judgment as entered was not in violation of any stipulation of the parties.

The common-law rule concerning unfair competition in the use of trade names was reaffirmed in Yale Co-operative Corporation v. Rogin, 133 Conn. 563, 571, 53 A.2d 383: “‘No inflexible rule can be laid down as to what use of names will constitute unfair competition; this is a question of fact. The question to be determined is whether or not, as a matter of fact, the name is such as to cause confusion in the public mind as between the plaintiff’s business and that of the defendant, resulting in injury to the plaintiff. The test is whether the public is likely to be deceived. ... If the court finds that the effect of appropriation by one corporation of a distinctive portion of the name of another is to cause confusion and uncertainty in the latter’s business, injure them pecuniarily and otherwise, and *266 deceive and mislead the public, relief will be afforded. ... It is not sufficient that some person may possibly be misled but the similarity must be such that any person, with such reasonable care and observation as the public generally are capable of using and may be expected to exercise, would be likely to mistake one for the other.’ Middletown Trust Co. v. Middletown National Bank, 110 Conn. 13, 20, 147 A. 22.” This rule is consistent with the general holding that if there is sufficient similarity of names to deceive, it is not necessary to establish a fraudulent intent in the use of the name. Holmes, Booth & Haydens v. Holmes, Booth & Atwood Mfg. Co., 37 Conn. 278; annot., 66 A.L.R. 948, 954. A trade name will be protected but not “until it has in fact become in the market the name for goods or services coming from or through a particular source or the name for a particular business. This special significance, once acquired, is thereafter its primary meaning in the market, though lexicographically it may have an earlier, different meaning.” Restatement, Torts § 716, comment a.

In this case, the court found that confusion did in fact result from the use of identical names by organizations dealing as competitors in the same market, Norwich.

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Bluebook (online)
377 A.2d 312, 173 Conn. 261, 202 U.S.P.Q. (BNA) 77, 1977 Conn. LEXIS 847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shop-rite-durable-supermarket-inc-v-motts-shop-rite-of-norwich-inc-conn-1977.