Taylor v. Hoppin' Johns, Inc.

405 S.E.2d 410, 304 S.C. 471, 1991 S.C. App. LEXIS 78
CourtCourt of Appeals of South Carolina
DecidedMay 6, 1991
Docket1655
StatusPublished
Cited by15 cases

This text of 405 S.E.2d 410 (Taylor v. Hoppin' Johns, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Hoppin' Johns, Inc., 405 S.E.2d 410, 304 S.C. 471, 1991 S.C. App. LEXIS 78 (S.C. Ct. App. 1991).

Opinion

Per Curiam:

This case involves alleged servicemark infringement. John M. Taylor owns and operates a culinary bookstore in downtown Charleston under the name “Hoppin’ Johns.” He also consults with the restaurant industry and occasionally writes culinary articles under the pseudonym “Hoppin’ John.” John Wilson is an officer and sole shareholder in Hoppin’ Johns, Inc., a corporation formed to operate a nightclub in North Charleston. The nightclub was named “Hoppin’ Johns” and opened for business on March 22, 1989. Taylor filed suit on March 24 alleging (1) common law servicemark infringement, (2) common law unfair competition, (3) statutory unfair trade practices, and (4) violation of statutory trademark laws. He sought a permanent injunction preventing the nightclub’s use of the name “Hoppin’ Johns” and damages. After a nonjury trial, the trial court granted the request for a permanent injunction and also awarded the following relief: (1) $3,000 damages for trademark infringement, (2) $9,000 damages for violation of common law unfair trade practices, (3) $9,000 damages for violation of the South Carolina Unfair Trade Practices *473 Act, (4) $9,000 damages for violation of S.C. Code Ann. Section 39-15-210 (1976), (5) $9,000 damages for violation of the South Carolina Unfair Trade Practices Act, (4) $9,000 damages for violation of S.C. Code Ann. Section 39-15-220 (1976), and (6) attorney fees and costs. The damages were cumulative. Hoppin’ Johns, Inc. and John Wilson appeal.

The complaint has legal and equitable aspects as Taylor seeks both a permanent injunction and damages. Characterization of this action depends on the “main purpose” in bringing the action. Insurance Financial Services, Inc. v. South Carolina Insurance Co., 271 S.C. 289, 247 S.E. (2d) 315 (1978); Johnson v. South Carolina National Bank, 285 S.C. 80, 328 S.E. (2d) 75 (1985). From our review of the complaint we conclude the main purpose of this action was to obtain an injunction to prevent further use of the name “Hoppin’ Johns,” which Taylor claimed was his servicemark. Since an injunction is an equitable remedy, we will take our own view of the evidence.

I.

We first address the trial court’s order finding the appellants violated S.C. Code Ann. Sections 39-15-210 and -220 (1976). The trial court awarded a total of $18,000 damages on these two causes of action. We reverse those portions of the trial court’s order.

A.

Section 39-15-210 provides for civil liability for fraudulent registration of a mark. A person who obtains registration of a mark by “false or fraudulent representation or declaration” is liable for “all damages sustained in consequence of such filing or registration.”

Taylor contends the appellants filed a fraudulent application with the South Carolina Secretary of State for registration of the servicemark. Taylor had not previously registered the servicemark with the Secretary of State. On March 30, 1989, the appellants submitted an application for registration of the mark. On the application it was noted the appellants were “aware of a bookstore in a other [sic] city (Charleston) that uses the name Hoppin’ John’s.” Taylor contends the application was fraudulent because it did not reveal litigation had al *474 ready commenced between the parties, and it implied the two locations were distant whereas they are only a few miles apart.

The application did reveal the existence of Taylor’s purported interest. More importantly, however, there is no evidence in the record to support the award of $9,000 damages. The clear language of the statute indicates damages must be “sustained in consequence of such filing or registration.” Taylor presented no evidence on this point. All of his evidence on damages related to a time before the application for registration was submitted. Accordingly, the trial court erred in finding liability and awarding damages under this statute.

B.

The trial court also held the appellants violated the provisions of Section 39-15-220 and awarded damages of $9,000 under this cause of action. Section 39-15-220 addresses civil liability for certain uses of a registered mark. The language of the statute states the section covers registered marks. Taylor never registered his servicemark. Accordingly, Taylor has no basis to seek recovery under this statute. The trial court erred in finding liability and awarding damages under this section.

II.

Additionally, the trial court held the appellants liable to Taylor under theories of common law trademark infringement, common law unfair trade practices, and violation of the South Carolina Unfair Trade Practices Act. It granted Taylor a permanent injunction and awarded him a total of $21,000 damages under these three causes of action.

The basis of the trial court’s finding under these three causes of action was that the appellants infringed upon and appropriated Taylor’s servicemark to the detriment of Taylor and his business. In other words, since the trial court found trademark infringement, it also found unfair competition and unfair trade practices based upon the same conduct. The trial court awarded separate cumulative damages under each cause of action. As one ground of error, the appellants contend the court awarded double recovery of damages.

We hold that the trial court did grant double recovery of *475 damages under the theories of unfair competition and violation of the South Carolina Unfair Trade Practices Act and that this was error. The court awarded Taylor $3,000 damages for trademark infringement based upon loss of profits. The court also awarded $9,000 for common law unfair competition and $9,000 for statutory unfair trade practices based upon the same conduct. The court gave no explanation for the calculation of these damages. Taylor contends these damages are for loss of reputation. Simply stated, there is no credible evidence in the record to support this argument. The two awards violate the basic rule of law that there can be no double recovery for a single wrong and a plaintiff may recover his actual damages only once. Inman v. Imperial Chrysler-Plymouth, Inc., — S.C. —, 397 S.E. (2d) 774 (Ct. App. 1990). The single alleged wrong in this case was trademark infringement. Assuming the appellants were liable under that theory, the damage awards under the unfair competition and unfair trade practices causes of action cannot stand because such awards constitute double recovery. The trial court’s order is reversed on those causes of action.

III.

As stated, under the common law trademark infringement cause of action, the trial court granted a permanent injunction preventing further use by the appellants of the servicemark, “Hoppin’ Johns,” and awarded Taylor $3,000 for loss of profits.

Taylor has operated his bookstore in downtown Charleston since late 1986 and used the mark “Hoppin’ Johns” for his bookstore as well as his mailing lists. He has also utilized or referred to the name in culinary articles in newspapers or magazines. Additionally, he has appeared on local television shows under the name.

John Wilson began using the mark for his nightclub in early 1989.

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Bluebook (online)
405 S.E.2d 410, 304 S.C. 471, 1991 S.C. App. LEXIS 78, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-hoppin-johns-inc-scctapp-1991.