Excelsior Cereal Milling Co. v. Taylor Milling Co.
Excelsior Cereal Milling Co. v. Taylor Milling Co.
Opinion of the Court
This is an appeal from a judgment in favor of the defendant after an order sustaining its demurrer to the plaintiff’s complaint, the latter having declined to amend.
The facts of the case as set forth in said complaint are briefly these: In the year 1907, and long prior thereto, the *593 Del Monte Milling Company was engaged in the manufacture and sale of food products throughout California and adjacent states, in the course of which it had discovered a process for the blending of different kinds of flour so as to produce a compound to be used in the making of pancakes, waffles, etc., and which it had introduced to the trade and largely sold under the name of “California Flapjack Flour.” In 1907 the Del Monte Milling Company sold to the plaintiff the exclusive right to use this process in the manufacture of said compound for sale in certain of the southern counties of California and in the states of Nevada and Arizona. The plaintiff thereupon began the manufacture and sale of the product under the name of “California Flapjack Flour,” and have since continued so to do, and have expended large sums in advertising said product under said name, and have built up an extensive trade therein. It is also alleged that because of the long-continued use of said name the word “Flapjack” therein has come to be understood by consumers and by the public and the trade generally to mean and apply to the particular brand of self-raising flour which the plaintiff was making and selling under said name, and that in fact up to the year 1914 no other like article of food had been put upon the market or sold within said territory under the name of “Flapjack” or “Flapjack Flour.” The complaint then proceeds to allege that in the year 1914 the defendant began the manufacture and sale of self-raising flour, to which at first it gave the name of “Pancake Flour,” but a year later this name was changed, and the defendant began to put forth its said product under the names of “Flapjack Flour,” “Los Angeles Best Self-rising Flapjack Flour” and “Taylor’s Improved Flapjack Flour,” and to sell the same within said territory under said names, and that many persons have bought the defendant’s said products under the belief that they were obtaining the plaintiff’s product, and have thereby been deceived to the plaintiff’s injury and loss. The complaint prays for an injunction against the defendant restraining it from the use of the name “Flapjack” in connection with the product which the latter puts forth.
The defendant’s demurrer was general and the trial court sustained it upon the broad ground that said complaint did *594 not set forth facts sufficient to constitute a cause of action. The correctness of this ruling is assailed upon this appeal.
We are of the opinion that the trial court was not in error in its said ruling. The appellant concedes that the word “Flapjack” and the phrase “Flapjack Flour” are generic terms, which could not be made the subject of prior or exclusive appropriation as or by means of a trademark, and the plaintiff lays no claim to the possession of any exclusive right thereto or to the use thereof upon that ground. This phase of the case being disposed of by this admission, the only remaining basis upon which the plaintiff could predicate a claim of right to prevent the defendant’s use of said terms in marketing its own product would be that by such appropriation and use of said terms the defendant was indulging in a fraudulent practice to the plaintiff’s injury which it would be the duty of a court of equity to enjoin.
Judgment affirmed.
Waste, P. J., and Kerrigan, J., concurred.
*596 A petition to have the cause heard in the supreme court, after judgment in the district court of appeal, was denied by the supreme court on December 11,1920.
Angellotti, C. J., Lawlor, J., Wilbur, J., Lennon, J., and Olney, J., concurred.
Melvin, J., was absent.
Shaw, J., dissented from the order denying a hearing in the supreme court and on December 13, 1919, rendered the following opinion thereon:
Dissenting Opinion
I dissent from the order denying a rehearing and refusing a .transfer of this ease to the supreme court.
The case comes directly within the principle established by this court in Weinstock, Lubin & Co. v. Marks, 109 Cal. 529, [50 Am. St. Rep. 57, 30 L. R. A. 182, 42 Pac. 142], and Banzhaf v. Chase, 150 Cal. 180, [88 Pac. 704]. The principle is that one who, with intent to defraud the plaintiff, uses any artifice, device, or label on his own goods to deceive the plaintiff’s customers into the belief that they are buying the plaintiff’s goods and thereby induces them to buy the defendant’s goods, he is liable in damages for the injury thus caused to the trade of the plaintiff. The complaint in the present case sets forth facts which bring it within this principle. The device used was putting a label, including the word “Flapjack” on the defendant’s flour, whereby it led plaintiff’s customers to believe they were purchasing flour sold by the plaintiff under that label. The error in the opinion is in assuming that this device could not, as a matter of law, have deceived the plaintiff’s customers. The complaint alleges that it did, and the court should not, and could not, properly hold that this allegation is on its face impossible. It might not deceive all persons, but the case is made out if it deceives a sufficient number to constitute a substantial injury to plaintiff’s trade and the deceit was practiced with the intent to defraud plaintiff. The allegation is sufficient and the fact could only be determined by the evidence. The case involved nothing more than the sufficiency of the allegations.
Reference
- Full Case Name
- EXCELSIOR CEREAL MILLING COMPANY (A Corporation), Appellant, v. TAYLOR MILLING COMPANY (A Corporation), Respondent
- Cited By
- 1 case
- Status
- Published