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ADAM HAT STORES v. LEFCO

March 6, 1942

ADAM HAT STORES, Inc.,
v.
LEFCO et al.



The opinion of the court was delivered by: GANEY

This is a bill in equity brought by the plaintiff to enjoin and restrain the defendants from conducting their business under the style name, "Adams Clothes", in the cities of Philadelphia, Norristown, Chester, Wilmington and Trenton, or from using any other name deceptively similar to that of the plaintiff, or more particularly under any name containing the word "Adam" or "Adams". After carefully reviewing a great deal of testimony and a large number of exhibits, the court makes the following:

Findings of Fact.

 (1) The plaintiff is a corporation organized under the laws of the State of New York and is engaged largely in the sale at wholesale and retail of men's hats, and in a small way some wearing apparel such as neckwear and gloves throughout the United States.

 (2) The defendants are citizens and residents of the State of Pennsylvania, engaged in the sale of men's clothing and wearing apparel in the cities of Philadelphia, Chester, Norristown, Wilmington, Delaware and Trenton, New Jersey, in all of which men's hats are sold excepting in the City of Trenton.

 (3) Since 1924 the plaintiff has been continually engaged in the sale at retail and wholesale of hats and caps under the name Adam throughout the country, the annual sales of which at the time of the institution of this action ran around seven million dollars.

 (4) The plaintiff now has ninety-five (95) company owned stores, one hundred twenty-nine (129) agencies (those who handle only Adam products, but are individually owned) and two thousand dealers (those who sell Adam products along with any other products).

 (5) In this general area the plaintiff conducts two company owned stores in Philadelphia, the first of which was opened in September, 1930, at Thirteenth and Juniper Streets, seven sales agencies in Philadelphia, and one company owned store in Trenton, which was opened in 1931; a sales agency in Norristown, Pennsylvania, which was opened on September 19, 1933; a sales agency in Chester, Pennsylvania, opened on February 2, 1935 and one sales agency in Wilmington, Delaware, opened on March 5, 1934.

 (6) In the year 1933 the plaintiff moved his store to Thirteenth and Market Streets in the City of Philadelphia.

 (7) The plaintiff has spent large sums of money in radio broadcasting since the opening of its store in Philadelphia in 1930, and among others, sponsored sport programs and championship fights.

 (8) In Philadelphia alone the plaintiff's sales have increased from forty-four thousand dollars ($44,000) in 1931 to two hundred ninety thousand dollars ($290,000) in 1939.

 (9) The plaintiff has an established selling price for its hats of two dollars and 95/100 ($2.95).

 (10) In September, 1920, one of the defendants, Arthur Lefco, opened a store under the name of Charles Adams Co. and sold men's custom tailored clothes under the brand name "Adams Clothes".

 (11) In September, 1920, defendant opened a store at Trenton, New Jersey, selling clothes under the ...


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