Southern Utah Mortuary v. Roger D. Olpin Southern Utah Mortuaries

776 P.2d 945, 111 Utah Adv. Rep. 76, 1989 Utah App. LEXIS 109, 1989 WL 72144
CourtCourt of Appeals of Utah
DecidedJune 27, 1989
DocketNo. 880505-CA
StatusPublished
Cited by1 cases

This text of 776 P.2d 945 (Southern Utah Mortuary v. Roger D. Olpin Southern Utah Mortuaries) is published on Counsel Stack Legal Research, covering Court of Appeals of Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Utah Mortuary v. Roger D. Olpin Southern Utah Mortuaries, 776 P.2d 945, 111 Utah Adv. Rep. 76, 1989 Utah App. LEXIS 109, 1989 WL 72144 (Utah Ct. App. 1989).

Opinion

OPINION

Before BENCH, BILLINGS, and GREENWOOD, JJ.

GREENWOOD, Judge:

Appellant Roger D. Olpin and his associated business entities (Olpin) appeals from the trial court’s issuance of a permanent injunction prohibiting him from using the name “Southern Utah Mortuary,” thereby permitting respondent Richard Boyer and his companies (Boyer) exclusive use of the name in Beaver County, Utah.

FACTS

In our review of the trial court’s decision, we begin with the facts as found by the court. Olpin, as appellant, is required to marshal all evidence supporting the trial court’s findings, and must demonstrate that “the findings lack substantial evidentiary support.” In re Estate ofBar-tell, 776 P.2d 885, 886 (Utah 1989). Olpin has not adequately met that burden, either by marshaling evidence or demonstrating evidentiary insufficiency, but our statement of facts is fashioned with that standard in mind.

[947]*947In the 1920’s, Rube Winterrose first used the trade name “Southern Utah Mortuary” in Iron County, Utah, in connection with his funeral home in Cedar City, Utah. In the 1940’s, Winterrose opened funeral homes in Beaver County, Utah, in the cities of Beaver and Milford, where he also used the trade name “Southern Utah Mortuary.”

In the 1960’s, Winterrose sold all three funeral homes to Richard Barnes, who continued to use the name “Southern Utah Mortuary.” In 1973, Kenneth Metcalf and Dallen Williams (now deceased) purchased the three funeral homes and used the names “Southern Utah Mortuary” and “Metcalf Southern Utah Mortuary.” Met-calfs son-in-law, Joseph Campbell, joined the business in Beaver and Milford, where the names “Southern Utah Mortuary” and “Metcalf-Campbell Southern Utah Mortuary” were utilized.

On December 16, 1976, Metcalf Southern Utah Mortuary, Inc., a Utah corporation formed in 1976, sold the Cedar City mortuary to Boyer. The parties’ escrow agreement stated:

The description of the real property to be sold by METCALF SOUTHERN UTAH MORTUARY to BOYER is attached hereto as Exhibit “B”, and shall include in addition thereto, use of the name “Met-calf Southern Utah Mortuary”, and the good will associated with said business in the Cedar City and Iron County areas.
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It is specifically understood that this agreement does not include the assets of Metcalf Southern Utah Mortuary located in Beaver and in Milford, Utah.

After the Cedar City sale, Metcalf continued business in Beaver County as “Met-calf-Campbell Mortuary.”

In late 1981, Olpin purchased the mortuaries in Beaver and Milford from Metcalf and Campbell. Olpin had operated competing mortuaries in those cities prior to his purchase. Campbell accepted the offer on behalf of himself and Metcalf, as Metcalf was out of the country at the time. The transaction closed on December 31, 1981. The deed states:

For and in consideration of the sale of this property by the Grantors to the Grantees, the Grantors hereby agree that they will not go back into the mortuary business for ten (10) years from December 31, 1981, in Beaver, Utah; Milford, Utah; or Fillmore, Utah; areas, or in any other area where they would be in competition with Roger D. Olpin Mortuary, Inc. at their present locations.

Olpin subsequently erected new signs in front of the mortuaries purchased, designating them as “Olpin Mortuary.”

In February 1983, Boyer opened a new mortuary in Beaver called “Boyer Southern Utah Mortuary,” and on April 3,1983, Boyer filed an application to transact business under an assumed name, designating the name “Southern Utah Mortuary.” After learning that Boyer was entering the Beaver market as “Southern Utah Mortuary,” Olpin obtained telephone directory listings for his business as “Southern Utah Mortuary.”

On July 7, 1983, Olpin filed a similar application to transact business under an assumed name, designating the name as “Roger D. Olpin Southern Utah Mortuaries.” In 1985, Boyer merged his business with Spilsburg-Graff Mortuary and dropped Boyer from the name of his mortuary. Boyer then brought this action to enjoin Olpin from using the name “Southern Utah Mortuary.”

At trial, the parties stipulated that the name “Southern Utah Mortuary” had acquired a secondary meaning in Beaver County and that use of the name had caused confusion in Beaver County, and would continue to do so. After trial, the court entered findings of fact which included the following: While reserving the Beaver assets, Metcalf and Boyer intended that Boyer would be entitled to use the name “Southern Utah Mortuary” in connection with his business enterprises; Boyer accordingly formed a Utah corporation on January 18, 1977, called Boyer Southern [948]*948Utah Mortuary, Inc.1; the transaction between Metcalf and Boyer does not mention use of the name “Southern Utah Mortuary” nor a transfer of good will, but evidences only transfer of buildings and real property, with an attendant covenant not to compete; and use of the Southern Utah designation by both parties had caused confusion to the public served by both. The trial court also found that the parties had failed to produce sufficient evidence of damages or actions that were either malicious or in reckless disregard of the other’s rights. The trial court concluded that Ol-pin should be enjoined permanently from use of the name “Southern Utah Mortuary” or any derivative or combination of the name. The injunction was to have prospective effect only, and no damages were awarded.

Olpin appeals, claiming the court erred in concluding that Boyer was entitled to exclusive use of the trade name “Southern Utah Mortuary” in the Beaver County area.

STANDARD OF REVIEW

In reviewing the trial court’s findings of fact, we will affirm the findings unless they are clearly erroneous. Utah R.Civ.P. 52(a). However, we accord the trial court’s conclusions of law no deference, and review them for correctness. Scharfv. BMG Corp., 700 P.2d 1068, 1070 (Utah 1985). Similarly, where the trial court interprets a contract as a matter of law, where no ambiguity exists which justifies examination of the parties’ intent, we review for correctness only. Allstate Enters., Inc. v. Heri-ford, 772 P.2d 466, 468 (Utah Ct.App.1989).

GOOD WILL AND TRADE NAMES

Good will is a common law concept, defined variously as

“nothing more than the probability that the old customers will resort to the old place[,]” ... [or] “the advantage or benefit, which is acquired by an establishment, beyond the mere value of the capital stock, funds, or property employed therein, in consequence of the general public patronage and encouragement which it receives from constant or habitual customers, on account of its local position, or common celebrity, or reputation for skill or affluence, or punctuality, or from other accidental circumstances, or necessities, or even from ancient par-tialities or prejudices.”

Nims, The Law of Unfair Competition and Trademarks, § 13 at 74-75 (4th ed. 1947).

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776 P.2d 945, 111 Utah Adv. Rep. 76, 1989 Utah App. LEXIS 109, 1989 WL 72144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-utah-mortuary-v-roger-d-olpin-southern-utah-mortuaries-utahctapp-1989.