Fleischmann Distilling Corp. v. Maier Brewing Co.
Opinion of the Court
delivered the opinion of the Court.
This is a trademark case arising under the Lanham Act (60 Stat. 427, 15 U. S. C. §§ 1051-1127) in which our sole concern is with the relief that may be granted when deliberate infringement of a valid trademark has been established. The question is whether federal courts have power in that context to award reasonable attorney’s fees as a separate element of recovery in light of § 35 of
The scope of petitioners’
As early as 1278, the courts of England were authorized to award counsel fees to successful plaintiffs in litigation.
Although some American commentators have urged adoption of the English practice in this country,
Limited exceptions to the American rule have, of course, developed.
The recognized exceptions to the general rule were not, however, developed in the context of statutory causes of action for which the legislature had prescribed intricate remedies. Trademark actions under the Lanham Act do occur in such a setting. For, in the Lanham Act, Congress meticulously detailed the remedies available to a plaintiff who proves that his valid trademark has been infringed. It provided not only for injunctive relief,
Section 35 of the Lanham Act, 15 U. S. C. § 1117:
“When a violation of any right of the registrant of a mark registered in the Patent Office shall have been established in any civil action arising under this chapter, the plaintiff shall bé entitled, subject to the provisions of sections 1111 and 1114 of this title, and subject to the principles of equity, to recover (1) defendant’s profits, (2) any damages sustained by the plaintiff, and (3) the costs of the action. ... In assessing damages the court may enter judgment, according to the circumstances of the case, for any sum above the amount found as actual damages, not exceeding three times such amount. If the court shall find that the amount of the recovery based on profits is either inadequate or excessive the court may in its discretion enter judgment for such sum as the court shall find to be just, according to the circumstances of the case. Such sum in either of'the above circumstances shall constitute compensation and not a penalty.”
The Fleisehmann Distilling Corporation owns the American distribution rights to Scotch whiskey sold under the trademark “Black & White.” Its co-petitioner is James Buchanan & Co., Ltd., owner and registrant of the trademark.
Maier Brewing Company, the principal respondent, is an independent brewery which marketed a beer under the label “Black & White” through its co-respondent, Ralphs Grocery Company.
E. g., Baker v. Simmons Co., 325 F. 2d 580 (C. A. 1st Cir. 1963); Wolfe v. National Lead Co., 272 F. 2d 867 (C. A. 9th Cir. 1959); Keller Products v. Rubber Linings Corp., 213 F. 2d 382 (C. A. 7th Cir. 1954); Century Distilling Co. v. Continental Distilling
E. g., Youthform Co. v. R. H. Macy & Co., 153 F. Supp. 87 (D. C. N. D. Ga. 1957); Williamson-Dickie Mfg. Co. v. Davis Mfg. Co., 149 F. Supp. 852 (D. C. E. D. Pa. 1957); Francis H. Leggett & Co. v. Premier Packing Co., 140 F. Supp. 328 (D. C. Mass. 1956); Singer Mfg. Co. v. Singer Upholstering & Sewing Co., 130 F. Supp. 205 (D. C. W. D. Pa. 1955).
“When a district judge, in making in a civil action an order not otherwise appealable under this section, shall be of . the opinion that such order involves a controlling question of law as to which there is substantial ground for difference of opinion and that an immediate appeal from the order may materially advance the ultimate termination of the litigation, he shall so state in writing in such order. The Court of Appeals may thereupon, in its discretion, permit an appeal to be taken from such order, if application is made to it within ten days after the entry of the order . . . .”
Statute of Gloucester, 1278, 6 Edw. 1, c. 1. This statute, which expressly mént-ioned only “the costs of his writ purchased,” was from the outset liberally construed to encompass all legal costs of suit, including counsel fees. Goodhart, Costs, 38 Yale L. J. 849, 852 (1929).
Statute of Westminster, 1607, 4 Jac. 1, c. 3.
See generally McCormick, Damages §60 (1935); Goodhart, Costs, 38 Yale L. J. 849-872 (1929) (passim).
Ehrenzweig, Reimbursement of Counsel Fees and the Great Society, 54 Calif. L. Rev. 792 (1966); McCormick, Counsel Fees and Other Expenses of Litigation as an Element of Damages, 15 Minn. L. Rev. 619 (1931); Stoebuck, Counsel Fees Included in Costs: A Logical Development, 38 Colo. L. Rev. 202 (1966); Note, 65 Mich. L. Rev. 593 (1967).
28 U. S. C. §1923 (a), which is derived from the Fee Bill of 1853, 10 Stat. 161, might be termed a “general exception.” It provides for recovery of nominal sums known as “Attorney’s and proctor’s docket fees.” In ordinary litigation and “on trial or final hearing” the sum recoverable under this provision is $20, to be taxed as part of the costs defined by 28 U. S. C. § 1920.
Section 34 of the Lanham Act, 60 Stat. 439, 15 U. S. C. § 1116.
Section 35 of the Lanham Act, 60 Stat. 439, 15 U. S. C. § 1117 (quoted, supra, n. 1).
See n. 11, supra.
28 U. S. C. § 1920 provides:
“A judge or clerk of any court of the United States may tax as costs the following:
“(1) Fees of the clerk and marshal;
“(2) Fees of the court reporter for all or any part of the stenographic transcript necessarily obtained for use in the case;
“(3) Fees and disbursements for printing and witnesses;
“(4) Fees for exemplification and copies of papers necessarily obtained for use in the'case;
“(5) Docket fees under section 1923 of this title.
“A bill of costs shall be filed in the case and, upon allowance, included in the judgment or decree.”
35 U. S. C. § 285. This provision was enacted in 1946, as was the Lanham Act. 60 Stat. 778. It was revised in 1952, so as to limit such recovery to “exceptional cases.” 66 Stat. 813.
See, e. g., Clayton Act, § 4, 38 Stat. 731, 15 U. S. C. § 15; Communications Act of 1934, § 206, 48 Stat. 1072, 47 U. S. C. § 206; Copyright Act, 17 U. S. C. § 116; Fair Labor Standards Act, § 16 (b), 52 Stat. 1069, 29 U. S. C. § 216 (b); Interstate Commerce Act, § 16, 34 Stat. 590, 49 U. S. C. § 16 (2); Packers and Stockyards Act, § 309 (f), 42 Stat. 166, 7 U. S. C. § 210 (f); Perishable Agricultural Commodities Act, § 7 (b), 46 Stat. 535, 7 U. S. C. § 499g (b); Railway Labor Act, § 3 First (p), 48 Stat. 1192, 45 U. S. C. § 153 First (p); Securities Act of 1933, § 11 (e), 48 Stat. 907, 15 U. S. C. § 77k (e); Securities Exchange Act of 1934, §§ 9 (e), 18 (a), 48 Stat. 890, 897, 15 U. S. C. §§ 78i (e), 78r (a); Servicemen’s Readjustment Act, 38 U. S. C. § 1822 (b); Trust Indenture Act, § 323 (a), 53 Stat. 1176, 15 U. S. C. § 77www (a). See also Fed. Rules Civ. Proc. 37 (a) and 56 (g).
S. 2540, 83d Cong., 1st Sess., § 25 (1953), containing a provision for recovery of attorney’s fees, passed the Senate but failed of enactment in the House of Representatives. The Report accompanying the bill stated that the provision was intended to parallel the then recent addition to the patent statute. (See n. 16, supra.) A similar provision was embodied in H. R. 7734, 84th Cong., 1st Sess., §25 (1955), which also died after passing the originating House.
Dissenting Opinion
dissenting.
Until this case, every federal court that has faced the issue has upheld judicial power to award counsel fees in trademark infringement cases.
It is not enough to say that Congress did not expressly provide for counsel fees in the original Lanham Act and has not subsequently amended the Act to authorize their allowance. There are many reasons for rejecting that kind of approach to statutory interpretation in this case. The Court acknowledges that a pre-Lanham Act decision—Aladdin Mfg. Co. v. Mantle Lamp Co., 116 F. 2d 708 (C. A. 7th Cir.)—held counsel fees were recoverable in a trademark action.
“If the court shall find that the amount of the recovery based on profits is either inadequate or excessive the court may in its discretion enter judgment for such sum as the court shall find to be just, according to the circumstances of the case.”.5
Allowing the court to consider the “circumstances of the case” to arrive at the amount of the judgment for the plaintiff hardly comports with the Court’s view that Congress rigidly limited the scope of remedies available
The argument that Congress has declined to amend the Act to provide explicitly for counsel fees is hardly determinative. For Congress can be assumed to have known that the federal courts were consistently exercising the power to award counsel fees after the Act’s passage. The failure to amend the statute to do away with this judicial. power speaks as. loudly for its recognition as the failure to pass the bills referred to by the Court speaks for the contrary conclusion.
I respectfully dissent.
Footnotes 4 and 5 of the Court’s opinion, ante, pp. 715-716, set out the copious authority supporting the power in trademark litigation to award counsel fees in appropriate circumstances.
This case does not inyolve the “adoption of the English practice in this country,” but simply whether the established American practice of awarding counsel fees in appropriate trademark cases is to be repudiated.
See, ante, pp. 715-716, n. 4.
Section 35 of the Lanham Act, 60 Stat. 439, 15 U. S. C. § 1117.
Ibid.
This was the reasoning of the District Court, in A. Smith Bowman Distillery, Inc. v. Schenley Distillers, Inc., 204 F. Supp. 374, 377:
“Mere silertce and inaction by Congress cannot be held to have repealed what has been found to be a well-established judicial power. Even though the Lanham Act may have been intended to be an integrated and comprehensive set of rules for trademark regulation and litigation to the exclusion of all conflicting rules, the retention of discretionary judicial power over the fixing of costs does not seem such a threat of inconsistency that it should by implication be held pre-empted or repealed by the Act. Some more positive action on the part of the legislature is necessary to indicate the Congressional intent to regulate what has long been an orthodox judicial function.” • (Footnote omitted.)
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