Turner v. Great American Opportunities, Inc.

716 S.W.2d 40, 1986 Tenn. App. LEXIS 3579
CourtCourt of Appeals of Tennessee
DecidedJune 18, 1986
StatusPublished
Cited by3 cases

This text of 716 S.W.2d 40 (Turner v. Great American Opportunities, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Turner v. Great American Opportunities, Inc., 716 S.W.2d 40, 1986 Tenn. App. LEXIS 3579 (Tenn. Ct. App. 1986).

Opinion

OPINION

TODD, Presiding Judge,

Middle Section.

The plaintiffs, John Turner, d/b/a Bahama Bronze Enterprises, and Riviera Cosmetics, Inc., have appealed from a directed verdict and judgment dismissing their suit against the defendant, Great American Opportunities, Inc., d/d/a Southwestern Educational Marketing Services Company, a/d/b/a Nashville Educational Marketing Services for trade mark infringement and misappropriation of trade secrets.

The sole issue presented on appeal is:

Whether the trial court erred in granting to defendants, at the conclusion of plaintiffs’ proof, a directed verdict with regard to the came of action alleging a misappropriation by defendants of plaintiffs’ trade secrets. (Emphasis supplied.)

It should first be noted that there are two plaintiffs, John Turner and his corporation, Riviera Cosmetics, Inc. It is alleged in the amended complaint that John Turner assigned to Riviera “his proprietary rights to the product”, but no allegation is found that the title to any trade secrets were transferred to the corporation. Neither brief makes any specific distinction between the joint plaintiffs, and none will be made by this Court.

As to the “defendants”, there is only one defendant, Great American Opportunities, Inc. The other “defendants” are mere trade names under which the defendant is alleged to have operated.

There is evidence from which a jury might find the following:

Plaintiff, Turner, received certain training in pharmacology by employment with three pharmaceutical companies. Thereafter he compounded several suntan lotions by mixing same at his home and testing [41]*41them upon neighborhood children; he did not make a secret of the ingredients, but the proportion of ingredients and the manner of mixing was kept secret. When the product was perfected, he located the following “suppliers” for manufacturing and marketing the product as follows:

Valjean, a “filler” to “blend the products”.
Braun Bottle Company to supply bottles. Sequist and PVC to supply caps.
Tape and Label to supply labels.
A Winter Park, Fla. firm to supply boxes.

In October, 1979, Turner began to negotiate with defendant regarding the marketing of his product. Turner’s corporation, Riviera, proposed to sell the product to defendant at 98 cents per bottle with payment assured by letter of credit to enable financing of large volume manufacture. Defendant declined to furnish a letter of credit, but agreed to pay suppliers direct if furnished with their names and addresses. Turner disclosed to defendant the names of the suppliers. On January 25, 1980, defendant wrote plaintiffs a letter a copy of which was signed and returned to defendant. The text of the letter was as follows:

Enclosed is our Purchase Order for 100,000 bottles of Polynesian Tan. ‘I would like to summarize the various points which we have agreed upon in placing this order.
1. Riviera Cosmetics agrees not to offer this product to any other fund-raising organization that would interfere and compete with the purposes of the agreement with Riviera and NEMS.
2. Riviera Cosmetics will provide product liability insurance on Polynesian Tan.
3. Riviera Cosmetics will pick up any legal costs in a product liability suit against Nashville EMS due to any irritating or abnormal reactions which might occur that are not normal with the use of products of this nature. Riviera Cosmetics is not liable for results of any product misrepresentation by Nashville EMS.
4. Riviera Cosmetics also agrees to trade the four product types in order to obtain a balanced inventory if one particular product is moving more than another.
5. Nashville EMS has the option to renew this relationship under the same terms next year, excluding product cost.
John, if all of these conditions meet your approval, I would like for you to acknowledge them by signing a copy of this letter for our files.

Thereafter, during 1980, defendant purchased 320,000 bottles of plaintiffs’ product without controversy.

When the parties negotiated the contract for 1981, defendant informed Turner that defendant could obtain equivalent products from the same suppliers. Nevertheless, the parties agreed upon a continuation of their relations during 1981. A written contract was executed by Riviera and defendant on December 22, 1980.

WHEREAS, Riviera developed and owns the formula for a line of suntan products which it markets and sells under its registered trademark POLYNESIAN TAN (R), including, Golden Tanning Lotion, Dark Bronze Tanning Lotion, Dark Bronze Tanning Oil, Super Tanning Oil and After Sun Lotion (hereinafter referred to as the “Suntan Products”).
WHEREAS, the Suntan Products are manufactured for Riviera by Valjean Corporation, 1785 South Patrick Drive, Indian Harbor Beach, Florida 32937 (“Valjean”) and/or other manufacturers specified by Riviera.
WHEREAS, NEMS desires to continue to be the exclusive distributor of the Suntan Products through fund-raising organizations and through mail order sales, and Riviera desires to appoint NEMS as such exclusive distributor.
NOW THEREFORE, in consideration of the foregoing premises and the mutual covenants and agreements hereinafter set forth, NEMS and Riviera hereby agree as follows:
[42]*421. During the term of this Agreement, Riviera (a) appoints NEMS to be the exclusive distributor of the Suntan Products in the United States through fund-raising organizations and through mail order sales, and (b) agrees not to sell any of the Suntan Products in the United States through fund-raising organizations or through mail order sales or to sell any of the Suntan Products to any other corporation, business entity or person which will sell any of the Suntan Products in the United States through fund-raising organizations or through mail order sales.
2. The term of this Agreement shall be the period commencing January 1, 1981 and terminating October 30, 1981, unless terminated sooner as provided herein.
3. During the term of this Agreement, Riviera grants NEMS a non-exclusive license to use any trademark, trade name, formula, process or other proprietary right owned by Riviera with respect to the Suntan Products in connection with NEMS’s advertising and sale of the Suntan Products....
4. NEMS shall place all orders for the production of the Suntan Products directly with Valjean or other manufacturers and with the suppliers of the containers and labels for the Suntan Products (NEMS to use manufacturers and suppliers as specified by Riviera if their price and the quality of their performance is, in the judgement of NEMS, competitive) and shall pay all such suppliers directly. Riviera shall cooperate with NEMS and assist NEMS to the best of its ability, in arranging for the production of the Suntan Products.
5.

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Cite This Page — Counsel Stack

Bluebook (online)
716 S.W.2d 40, 1986 Tenn. App. LEXIS 3579, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-great-american-opportunities-inc-tennctapp-1986.