Hoover Co. v. Groger

California Court of Appeal Mar 12, 1936 No. Civ. 10854Published

Before: Wood

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Holding. The court held that the defendants' use of the plaintiff's trade name in a classified directory to advertise their own competing services constituted unfair competition, as it was likely to deceive the public into believing the defendants were authorized agents of the plaintiff.

Issues

Whether the defendants' use of the plaintiff's trade name in a classified directory constitutes unfair competition.
Whether proof of actual fraudulent intent or actual consumer confusion is required to enjoin the use of a trade name.

Disposition. reversed

Quotations verified verbatim against the opinion

“It is the policy of the law to protect the business of the first person to enter the field doing business under a given name to the extent necessary to prevent fraud upon his business and upon the public.”

“It is not necessary for the plaintiff to prove fraudulent intent. The defendants may be enjoined if the natural consequence of their conduct is such as to cause deception.”

“The defendants are without right to list the various 'names in the classified. directory in the manner indicated.”

WOOD, J.

Plaintiff seeks to enjoin the publication! of the names of certain defendants in that part of the telephone directory of defendant Southern California Telephone Company, commonly known as the classified business directory in such a manner as to mislead the public concerning plaintiff’s business. The appeal is taken by plaintiff from a judgment in favor of defendants. No brief has been filed in this court by any of the defendants.

The plaintiff, under the names, “THE HOOVER COMPANY” and “HOOVER SUCTION SWEEPER COMPANY” is and for many years has been engaged in the business of manufacturing vacuum cleaners and maintaining repair stations in the city of Los Angeles and elsewhere throughout the nation. Plaintiff’s repair stations and branch offices have for a long period of time used the words "Hoover Vacuum Cleaner Repairing” in connection with their business. The business of plaintiff has become extensive and profitable and the name "Hoover" has become well kntjwn to the public. Defendant telephone company publishes periodically in the city of Los Angeles a classified business directory arranged alphabetically in connection with its general telephone directory and has published therein in large and conspicuous type the words “HOOVER VACUUM CLEANER REPAIRING”. Under these words appear in much smaller type, also alphabetically arranged, the names of the seventeen defendants other than the telephone company, together with the addresses and telephone numbers of said defendants, the first being “Ace Reliance Electric Service Co.” and the last being,” “Westlake Vacuum Cleaner Store”. The words “HOOVER VACUUM CLEANER REPAIRING” appear

[419]

above each of the names of the said seventeen defendants. In several instances the words “Hoover Vacuum Cleaner Repairing” appear in type of the same size as that in which the names of the defendants appear. It is alleged in the complaint that the defendant telephone company is about to again publish the same list in a manner similar to the former publication and that the defendants other than the telephone company, who have no connection with plaintiff, have caused the list to be printed as above indicated with intent to deceive the public and secure for themselves business which otherwise would and should come to plaintiff by misleading the public into believing that the advertisement in question emanated from plaintiff and that said defendants are the authorized agents of plaintiff.

Hoover Co. v. Groger

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WOOD, J.

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