This is аn appeal from the order of the district court sustaining a motion for summary judgment and dismissing the plaintiffs’ petition and action. It is an action brought by the plaintiffs as partners doing business in Lexington, Nebraska, as Sixth Street Locker and Grocery, to enjoin the defendant, Sixth Street Food Store of Lexington, Inc., from displaying and using a large sign reading “Sixth Street,” and from using the words “Sixth Street,” “Sixth Street Fоod Stores,” and “Sixth Street Food Stores of Lexington, Inc.,” or any combination thereof in the operation of its business on Seventh Street in Lexington, Nebraska.
We determine first what the issues actually were.
We go now to the defendant’s answer. It admitted the incorporation оn August 27, 1958; admitted the mailing on August 29, 1958, of the letter from the plaintiffs demanding that it cease and desist; admitted that it filed a trade name registration with the Secretary of State on September 12, 1958, claiming the trade name “Sixth Street Food Store”; admitted that it operates its business on Seventh Street; admitted that it displays a large sign thereon reading “Sixth Street”; and admitted that it does hold itself out to the public as “Sixth Street Food Store.” It further generally denied the allegations of the plaintiffs’ petition; alleged that it has no intent to mislead or deceive by the use of these names; in substance, alleged that its right to use these names arises out of an assignment from companies or partnerships that had operated at North Platte and Ogallala for many years and had acquired the right to use the names “Sixth Street” and “Sixth Street Market”; alleged that said assignment was made on September 1, 1958; and
It should be pointed out that a demurrer was filed to the amended petition in this case and was overruled. There are no depositions of the parties or witnesses in this case; and no requests for admissions or answers thereto. The issue drawn here on motion for summary judgment is based solely upon the affidavits filed by the defendant in support of the motion for summary judgment and the counteraffidavits filed by the plaintiffs. Before we examine the evidence, we state here the applicable rules with reference to the determinatiоn of the issues before us on a motion for summary judgment. The Summary, Judgments Act authorizes summary judgment only where the moving party is entitled to judgment as a matter of law, where it is clear what the truth is, and that no genuine issue remains for trial. Hall v. Hadley,
Tested by the principles laid down in these cases, the plaintiffs’ petition states a cause of action. The allegations clearly state the acquisition of a trade name, the actual use by the defendant of names of similar import on Seventh Street in Lexington, and deception, confusion, and diversion of the plaintiffs’ business by virtue of said use. The defendant, therefore, must pierce the allegations of the pleadings and show conclusively that the controlling facts are otherwise than as alleged. Knoll v. Knoll,
1. An answer denying all of the material allegations of the amended petition (except the admissions herein-before specifically pointed out), and an extensive pleading in the answer to the effect that it has an absolute right to use the names which it admits it is using by virtue of assignment of these names from another corporation and partnership that had used them in the areas of North Platte and Ogallala.
2. An affidavit including 23 pages of exhibits restating the allegations of assignment in its answer, the substance of which is that the defendant was incorporated on August 27, 1958, and subsequently thereto registered trade names which it had acquired by assignment from separate legal entities at North Platte and Ogallala that had been using the various names mentioned herein in those localities for many years.
3. Upon the vital issue of deception or confusion, the sole evidence on behalf of the defendant is an affidavit of members of the board of directors made on July 8, 1961, stating that the directors or officers of the corporation, or any other person in any way connected with said corporation never had, or does not now have, and
The plaintiffs’ affidavits generally controvert the affidavits of the defendant filed herein, and they allege that plaintiffs’ customers have been deceived into believing that they are dealing with the plaintiffs when they are dealing with the defendant; that advertisements by the defendant result in customers coming to plaintiffs’ place of business demanding special bargains which are currently bеing offered by the defendant; that plaintiffs receive bills, statements, shipments of freight and goods, and correspondence intended for defendant; that similar items intended for the plaintiffs are received by the defendant; that said actions are costly, damaging, and are a nuisance; and again restates factually the sending of the letter of August 29, 1958, notifying the defendant tо cease and desist from the use of the names involved herein.
The answer to the question as to whether any genuine issue of fact remains in this case is apparent. It surely could not be said that a mere denying of the intent to deceive, or to cause confusion, or to divert the business of the plaintiffs reaches the level of showing conclusively that the plаintiffs’ allegation as to diversion, confusion, and deception is untrue as a matter of law. It further appears conclusively that even if by remote inference, we could draw such a conclusion from the defendant’s affidavits, that the plaintiffs’ responsive affidavits are amply sufficient to affirmatively demonstrate that there
We hold that the allegations of the plaintiffs’ petition as to deception; confusion, and diversion of business have not been pierced by the showing made here; and that a genuine issue of fact exists, not only with respect to such issues, but as to the credibility of the witnesses who, so far, hаve only been heard in testimony in the ex parte affidavits.
It is fundamental that a general denial does not pierce the pleadings to destroy material issues raised by the pleadings. Without repeating them, we further point out that the other issues in the plaintiffs’ petition, except those admitted by the defendant’s answer, remain as issues and must be tried on their merits.
The defendant further argues strenuously that it is entitled to summary judgment because it has conclusively established that it is entitled to use the trade names in controversy in this case as a matter of law. This contention is based upon the allegations, supported by affidavits, that it acquired the trade names in question by appropriate assignment from corporations and partnershiрs who had previously used them in North
It is obvious from this, that the plaintiffs had a valid trade name or names in use in Lexington, Nebraska, on August 27, 1958, when the defendant became incorporated. This being true, it added nothing to the defendant’s case to register the trade name. Our court said in Peterson & Co. v. Jay, supra, that the protection afforded one who files a brand name with Secretary of State is not substantially different from that granted to one who has adopted and used a brand name but has not recorded it with the Secretary of State and the remedy in each instаnce is for wrongful infringement of a use which presents a reasonable likelihood of deception. We further held in Personal Finance Co. v. Personal Loan Service, supra, that the issuance of the permit by the Secretary of State was purely a ministerial act; and that the courts do not need to recognize the finding of fact made by an officer of the еxecutive department as binding upon it, as to justiciable questions.
One further contention of the defendant remains to
From what has been said, it is clear that there are genuine issues of fact as to all of the material allegations of the plaintiffs’ petition herein; that these allegations constitute a cause of action, and have not been pierced to demonstrate conclusively that there is no genuine issue of fact; and that this case must be tried on its merits.
The judgment, therefore, is reversed and the cause remanded with directions to try the case on its merits and for proceedings in conformity with this opinion.
Reversed and remanded.
