American Motors Co. v. DeGeorge
American Motors Co. v. DeGeorge
Opinion of the Court
delivered the Opinion of the Court.
This appeal is from a judgment for $1,388.40 for the defendant in a non-jury trial case.
On March 9, 1954, Nash Kelvinator Corporation registered the trademark Rambler with the United States Patent Office for twenty years. Defendant and respondent hereafter referred to as respondent, first contracted with plaintiff and appellant’s predecessor, Nash Motor Company, in 1954. Respondent was a franchised dealer on a year-to-year basis from 1954 until October 15, 1959. After 1957 when Nash automobiles were no longer manufactured, franchise agreements were made with appellant. Respondent was given written notice on July 6, 1959 that the franchise agreement would not be renewed for the next year.
Under the franchise agreement, respondent was authorized to display the trademark, Rambler. After the termination of the franchise, respondent continued to display the trademark, Rambler, on a sign on the front of his business establishment. The action in the district court sought to enjoin the respondent
Respondent counterclaimed in the district court alleging that appellant did not buy $613.40 worth of parts, accessories, and automotive supplies. In the franchise agreement appellant agreed to buy on termination of the agreement, parts, accessories, and automotive supplies of the current and three preceding models which in this case includes 1959, 1958, 1957. On cross examination Mr. DeGeorge admitted that appellant had probably bought all the parts they were obligated to buy under the franchise.
"We first reverse the conclusion of the lower court that the appellant did not come into the court with clean hands. This dispute has the taint of a grudge fight between a small car dealer and a comparatively large motor company. But for the persistence of the parties, it might have been settled long before coming here. However, that persistence is not to be blamed solely on either side. Appellant has performed its part of the franchise agreement.
Second, we reverse the conclusion of the lower court that appellant does not have a right to an injunction against the respondent from displaying the Rambler trademark. Respondent signed the dealer franchise agreement which ran from October 16, 1958, to October 15, 1959. This agreement
“* * * the defendants have the right to repair cars of the plaintiff’s and others’ manufacture, and to tell the public that such is their calling. But they may not do it under any guise which would create or reasonably tend to create the impression that they repair Ford cars only (if that is not the truth — and it was said not to be by their attorney at argument) as a Ford service station; or that they are authorized dealers in Ford ears.”
We find this case similar. Here the respondent sells used cars.
The Rambler sign may create an impression of authorization by American Motors to sell used cars. Therefore, the respondent is enjoined from displaying the sign.
Having concluded that the sign must be removed, it seems extremely harsh to expect the respondent to take it down at his own expense. The lower court found that respondent “was the sole owner of the sign Rambler displayed on his place of business.” He bought the sign and paid for it when it was a Nash sign. When it was repainted Rambler, he paid for that, too. It is not clear that the respondent listed the sign within thirty days after the termination of the franchise agreement.
The lower court shall forthwith order the respondent to remove the Rambler sign, and enjoin its further use on the premises, and upon compliance with such order, the appellant shall pay the respondent $775.00. Each party to bear their own costs on this appeal.
Dissenting Opinion
dissenting in part:
I concur in the opinion so far as it reverses the judgment. However I do not believe the defendant is entitled to anything here, he simply has not lived up to his contract.
Reference
- Full Case Name
- THE AMERICAN MOTORS COMPANY, a corporation, and v. EDDIE DeGEORGE d/b/a DeGEORGE MOTOR COMPANY of Butte, Montana, and
- Status
- Published