The Seven-Up Company v. O-So Grape Co.

177 F. Supp. 91, 2 Fed. R. Serv. 2d 721, 123 U.S.P.Q. (BNA) 520, 1959 U.S. Dist. LEXIS 2618
CourtDistrict Court, S.D. Illinois
DecidedSeptember 30, 1959
DocketP-2217
StatusPublished
Cited by10 cases

This text of 177 F. Supp. 91 (The Seven-Up Company v. O-So Grape Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Seven-Up Company v. O-So Grape Co., 177 F. Supp. 91, 2 Fed. R. Serv. 2d 721, 123 U.S.P.Q. (BNA) 520, 1959 U.S. Dist. LEXIS 2618 (S.D. Ill. 1959).

Opinion

MERCER, Chief Judge.

By its complaint in this cause, filed March 20, 1959, plaintiff, The Seven-Up *93 Company, prays injunctive relief and an accounting by defendants for profits growing out of alleged infringement of plaintiff’s trade-mark “7 Up” and alleged unfair competition. In summary, the complaint alleges: Since 1928 plaintiff has used its registered trade-marks “7 Up” and also “Seven Up”, in the marketing and exploitation of a soft drink; that plaintiff has expended large sums of money in advertising, marketing and promoting the sale and public acceptance of its product under the “7 Up” trade-mark; that plaintiff has achieved a general public acceptance of its product and a valuable good-will, both of which are symbolized by its said trade-mark; and that, at a date subsequent to plaintiff’s adoption and registration of its said trademarks, defendants have commenced the manufacturing and marketing of a soft drink of a flavor and type similar to plaintiff’s product under the trade-mark “Bubble Up.” It is further alleged that defendants’ “Bubble Up” trade-mark is invalid and that defendants’ use of that mark constitutes an infringement of plaintiff’s “7 Up” mark and unfair competition.

Defendants answered, denying the material allegations of the complaint and averring, inter alia, the affirmative defense of laches as a bar to plaintiff’s claims. The cause is now before the court upon defendants’ motion under Rule 42(b), F.R.Civ.P., 28 U.S.C.A., for a separate trial of the issue of laches in advance of trial of other issues in the cause.

The court is vested with a large discretion to order a separate trial of any issue in a pending suit “in furtherance of convenience or to avoid prejudice”, Rule 42(b), the exercise of which is unassailable in the absence of a clear abuse of discretion. Chicago, R. I. & P. R. Co. v. Williams, 8 Cir., 245 F.2d 397; Bowie v. Sorrell, 4 Cir., 209 F.2d 49, 43 A.L.R.2d 781; Shippers Pre-Cooling Service v. Macks, 5 Cir., 181 F.2d 510; See, to same effect, Meyercheck v. Givens, 7 Cir., 180 F.2d 221, 223. By its nature, this case is one peculiarly susceptible to the separation of its several issues for trial. Defendants aver that the proof on their defense of laches will be largely documentary evidence which will be uncontested. They estimate that that issue could be completely disposed of in one or two trial days, and they contend that a finding of laches against plaintiff would operate to dispose of all other issues in the case. That estimate of economy in time appeals to the court if it appears likely that a decision on the laches issue in favor of defendants would probably be decisive of all issues in the case. It is to be anticipated that trial of the case, ensemble, would require a number of trial days. The court is not disposed to order a separate trial of the issues, however, unless it is to be reasonably anticipated that disposition of the laches issue in defendants’ favor would place this litigation at rest.

Whether or not the latter result would be anticipated to follow a resolution of the laches issue in defendants’ favor depends upon an evaluation of the uncontradicted statements and averments, material to that issue, in the light of reported decisions addressed to the effect of proof of laches upon trade-mark litigation. Such statements and averments relate principally to a history of the conduct of the parties, respectively, as the same has a bearing upon the issue of laches. For purposes of this memorandum, the following composite summary of defendants’ verified answer, defendants’ Rule 42(b) motion and the affidavits attached to that motion will suffice to promote an understanding of the questions involved.

On December 23,1952, defendant, O-So Grape Company, entered into a contract with defendant, Bubble Up Corporation, for the purchase from Bubble Up of the-trade-mark “Bubble Up” and the goodwill and business relating to that mark in the marketing and exploitation of a soft drink. Shortly thereafter, O-So-Grape Company, pursuant to that contract purchased the said mark and business from Bubble Up Corporation for the-sum of approximately $300,000. Prior *94 to its execution of that contract, O-So Grape Company, which is hereinafter referred to as Company, caused an investigation to be made by its house counsel and trade-mark counsel as to the value and validity of the “Bubble Up” mark and registry thereof. That investigation revealed that the mark “Bubble Up” was registered in the United States Patent Office under No. 141,244 on April 21, 1921, by the Sweet Valley Products Co., of Sandusky, Ohio, for use in connection with the marketing of a soft drink. Thereafter, in 1937, one Leroy 0. Schneeberger, doing business as Bubble Up Company of St. Louis, Missouri, purchased the mark “Bubble Up”, together with the business and the good-will pertaining thereto from Sweet Valley. On February 22, 1938, Schneeberger, d/b/a Bubble Up Co., as aforesaid, secured United States Trade-Mark Registration No. 354,840 covering the mark “Bubble Up” in conjunction with a representation of conventional bubbles as a trademark for a soft drink.

On October 2, 1942, plaintiff filed two suits in the United States District Court at St. Louis, Missouri, against the Cheer Up Sales Company and The Natural Set Up Sales Corporation, respectively, in which plaintiff alleged, respectively, that the registered trade-mark “Cheer Up”, for a soft drink, and the registered mark “Natural Set Up”, for a soft drink, infringed plaintiff’s trade-mark “7 Up”, and also “Seven Up.” On August 16, 1943, while the above two cases were pending, plaintiff filed in the same court, a suit against Schneeberger, doing business as Bubble Up Company, alleging that the trade-mark “Bubble Up” was •invalid and that that mark infringed plaintiff’s mark “7 Up”. The Cheer Up case was tried and on July 6, 1944, a judgment was entered finding and holding that plaintiff’s trade-marks were not Infringed by the mark “Cheer Up”. Thereafter, plaintiff prosecuted the Cheer Up case to four further adverse decisions, the latter of these being a denial of plaintiff’s petition for writ of certiorari by the United States Supreme Court on October 14, 1946. See Seven Up Co. v. Cheer Up Sales Co., 8 Cir., 148 F.2d 909, certiorari denied 326 U.S. 727, 66 S.Ct. 32, 90 L.Ed. 431. Seven Up Co. v. Cheer Up Sales Co., 8 Cir., 153 F.2d 231, certiorari denied 329 U.S. 717, 67 S.Ct. 47, 91 L.Ed. 622.

After the adverse Cheer Up decisions, plaintiff abandoned and dismissed its suits against the marks “Natural Set Up” and “Bubble Up”, although the latter case was at issue. In the approximately 13 years elapsed between plaintiff’s dismissal of its suit against Schneeberger, defendant corporations received no notice or claim by plaintiff, either orally or written, that the trade-mark “Bubble Up” was invalid or that that mark infringed plaintiff's “7 Up” marks, until March 17, 1959, when plaintiff filed in the United States Patent Office a petition to cancel defendants’ “Bubble Up” registrations. Three days later this suit was filed.

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177 F. Supp. 91, 2 Fed. R. Serv. 2d 721, 123 U.S.P.Q. (BNA) 520, 1959 U.S. Dist. LEXIS 2618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-seven-up-company-v-o-so-grape-co-ilsd-1959.