Willys-Overland Co. v. Akron-Overland Tire Co.

268 F. 151, 1920 U.S. Dist. LEXIS 871
CourtDistrict Court, D. Delaware
DecidedAugust 2, 1920
DocketNo. 386
StatusPublished
Cited by13 cases

This text of 268 F. 151 (Willys-Overland Co. v. Akron-Overland Tire Co.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Willys-Overland Co. v. Akron-Overland Tire Co., 268 F. 151, 1920 U.S. Dist. LEXIS 871 (D. Del. 1920).

Opinion

MORRIS, District Judge.

The plaintiff, the Willys-Overland Company, an Ohio corporation, by its bill of complaint charges the defendant, Akron-Overland Tire Company, Inc., a Delaware corporation, with a wrongful and unfair use of the word “Overland,” and now moves for a preliminary injunction restraining and enjoining the defendant, from using that word as the whole or as a part of its corporate name, from listing its capital stock upon the New York curb market, or any other association or exchange where listed stocks and securities are dealt in, under any name containing the word “Overland,” and from designating its tires, or other automobile accessory made or sold by it, by the word “Overland,” or by any combination of words containing that name.

The plaintiff obtained its charter in 1912. It thereupon acquired the entire business, assets, trade-mark, trade-name, and good will of Willys-Overland Company, a corporation, which in its turn had acquired the like rights and property of the Overland Automobile Company, an Indiana corporation. The last-named company manufactured and sold automobiles. It began business in 1907. During all of the intervening period of 13 years the plaintiff and its predecessors have sold their prod-ducts under the name, “Overland” throughout the United States. This name was, in 1909, registered in the United States Patent Office as a trade-mark for automobiles by the Overland Automobile Company. The word “Overland” appears upon the products of the plaintiff. Advertisements of the plaintiff appearing in newspapers, periodicals, and upon billboards and electric signs throughout the United States have given special prominence to “Overland.” Companies affiliated with the plaintiff include that word in their corporate names, as do also, with the consent of the plaintiff, many companies dealing exclusively in the products of the plaintiff. The products of the plaintiff have long been widely and favorably known to the public by the name “Overland.”

[153]*153[1] Consequently a corporation other than the plaintiff, engaged in the manufacture or sale of automobiles, their parts or accessories, and using the word “Overland” as a part of its name, or marking such articles “Overland,” thereby suggests to the public that it is the plaintiff, or is connected therewith, and that its product is made by or for the plaintiff. Such deception would unquestionably enable the corporation engaging therein to pass off at least a portion of its product and capital stock as the product and capital stock of the plaintiff. The capital stock of the plaintiff is widely bought and sold by the general public. The plaintiff and its predecessors, operating under corporate names embodying the word by which their products were and are known, have built-up and established for the plaintiff a reputation for financial responsibility and fair dealing, and have led the public to expect a certain standard of quality in its products.

The business of the defendant is that of rebuilding or retreading automobile tires and selling the same. It was organized in October, 1919, under the name of Akron Tire Company, Inc. In January, 1920, by amendment of its charter, it changed its name to Akron-Overland Tire Company, Inc. The circumstances surrounding the change of name are instructive. The Overland Tire Company, a New Jersey corporation, was engaged in the same business as the defendant. The plaintiff objected to the use of “Overland” in the corporate name of that company, and requested that that word be eliminated therefrom. After conferences and correspondence between representatives of the two corporations, counsel for the Overland Tire Company agreed to recommend that the request of the plaintiff be complied with, upon condition that the plaintiff share pro rata in the expense thereof, to which condition the plaintiff assented. But the elimination was not made. On the contrary, another course was pursued. The plaintiff soon thereafter received from the attorney representing the Overland Tire Company a letter reading in part as follows:

“With reference to the above corporation [Overland Tire Company], I am informed to-day that it has just been acquired by Akron Tire Company, a corporation of the state of Delaware. I also am informed that Akron Tire Company proposes to consolidare or merge the two corporations, and will change its name to Akron-Overland Tire Company, at least for the present. The Overland Tire Company had determined to change its name, but the present owners decided to proceed under the new ñame as stated above. Neither * * * nor the writer represent the Akron Company in any capacity, which it is understood is represented by * * * .”

The defendant acquired the business, property, and rights of the Overland Tire Company, and immediately changed the name of the former to Akron-Overland Tire Company, Inc., as above stated. Four of the seven directors of the defendant were directors of the Overland Tire Company; it having five directors. The president and secretary of the defendant were president and secretary, respectively, of the Overland Tire Company. The business of the defendant is not so unrelated to that of the plaintiff as to prevent injury to the latter if confusion results from the action of the former. That the name of the defendant is conducive to confusion there can be no doubt on the [154]*154evidence. The Detroit Free Press published July 28, 1919, on its financial page, an item containing these statements:

“Stock of the Overland Tire Company will shortly he sold on the New York curb. This is the company in which John N. Willys [the president of the plaintiff] is said to be the controlling factor.”

A letter to John N. Willys says:

“ * * * I was under the impression, when I had purchased tires from the Overland Tire Company, that that firm and yours was one.”

Indeed Burrill Ruskay, the treasurer and a director of the defendant company, seems to have recognized the likelihood of confusion, for in his affidavit, filed on behalf of the defendant, he says:

“That on or about the first part of June, 1919, my attention was called to the fact that the Overland Tire Company of New Jersey was in need of additional capital in order to expand its business. That after negotiations had progressed, and when about to sign a definite agreement to undertake the sale of the stock of the Overland Tire Company, I pointed out the'possibilities of an objection being raised by the Willys-Overland Company to the name Overland.”

Rater in his affidavit Mr. Ruskay admits by necessary implication that actual confusion has resulted. He states:

“To my personal knowledge and belief, the. similarity in names harms the Overland Tire Company, in view of the stock market antics of the stock of the Willys-Overland Company, and alsq the criticism that have been brought to our attention of the products of that company.”

If an illustration be needed that the confusion was not eliminated by the prefix “Akron,” it is found in the above quotation from the affidavit of Mr. Ruskay. He there refers to the defendant as “Overland Tire Company.” If an officer of the defendant so designates the defendant in an affidavit, a like designation by that part of the public purchasing tires and capital stock should not be characterized as unreasonably careless.

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Bluebook (online)
268 F. 151, 1920 U.S. Dist. LEXIS 871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/willys-overland-co-v-akron-overland-tire-co-ded-1920.