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William H. C. Lawrence, administrator, vs. William H. Hull & others

Massachusetts Supreme Judicial Court1897-10-20
169 Mass. 250

Summary

Holding. The court affirmed that the defendants' license to use the firm name Lawrence, Wilde, and Company expired after the five-year term specified in the partnership agreement and did not survive Lawrence's retirement. The injunction against continued use of the name was granted, but recovery was limited to compensation for the statutory violation rather than an accounting of profits.

Andrew Lawrence was a partner in the firm Lawrence, Wilde, and Company until January 31, 1889. Upon his retirement, he executed documents transferring his partnership interests to the three remaining partners. The remaining partners continued operating under the firm name Lawrence, Wilde, and Company. Lawrence's administrator sued to enjoin the defendants from using the Lawrence name, claiming the retirement documents did not constitute written consent under the relevant statute. The court examined two instruments: an earlier agreement contemplating a five-year partnership under the Lawrence, Wilde, and Company name beginning February 1, 1889, and a later conveyance of Lawrence's property interests executed on the retirement date. The court determined that only the earlier agreement granted any license to use the firm name, and that license was expressly limited to the five-year term specified in the partnership contract. The later conveyance, while referencing the firm name, did not grant the right to use it; the language merely acknowledged that a license already existed from the earlier instrument. Because the five-year period had expired by the time of this suit, the defendants no longer had authority to use the Lawrence name.

The court also addressed the appropriate remedy. Although the administrator sought an accounting of profits, the court held that such recovery was not warranted because there was no evidence of unfair competition or that the defendants' gains corresponded to the administrator's losses. The proper remedy was limited to compensation for the infringement of the statutory right itself, which the court found to be something less than the profits sought.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a conveyance of partnership property interests implicitly grants the right to use the partnership firm name
  • Whether a license to use a firm name granted for a specific term survives after that term expires
  • What remedy is appropriate for unauthorized use of a former partner's name in a firm style

Procedural posture

This is an equity action brought by the administrator of a deceased partner to enjoin former partners from using the partnership firm name after the statutory license to do so had expired.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Holmes, J.

This is a bill in equity brought by the administrator of Andrew Lawrence, under Pub. Sts. c. 76, §§ 6, 7, to enjoin the defendants from using the name of Lawrence in their partnership name, which at present is Lawrence, Wilde, and Company. The defendants rely on two written instruments executed by Lawrence as constituting a consent in writing which satisfies the statute. The most important of them was executed by Lawrence to his three remaining partners on the date of his retiring from the firm of Lawrence, Wilde, and Company as then constituted. By it he sold to them, “ at this date constituting the firm of Lawrence, Wilde, & Co., all my right, title, and interest to and in any and all things and property of whatsoever name or nature, in which I have an undivided interest with said Hull, Wilde, and Darrow, as a member of the late firm of Lawrence, Wilde, & Co., which copartnership expired by limitation on the 31st day of January, 1889.” The words of conveyance are thought to carry the right to use the firm name by implica tion. We are of opinion that they do not have that effect. The firm is contemplated as dissolved, and the conveyance is only of the property in which the former member of a now dissolved firm has an undivided interest after the dissolution with the other former members. But the statute gave each former member the whole and undivided interest in the use of his own name, and words could not have been framed more accurately to exclude a grant of that interest. It is time, however, that the earlier words, “at this date constituting the firm of Lawrence, Wilde, & Co.,” do import a license of some sort to use that style for the partnership. But they do not purport to grant such a license; they import that in some way the license already exists. And this was the fact, as we find by referring to the other and earlier instrument. By that, while he was still a member of the firm, Lawrence agreed to sell out to his three other partners, and they agreed “to make a copartnership contract, to commence on the first day of February, A. d. 1889, for the term of five years, under the firm name of Lawrence, Wilde, & Co.” This Lawrence assented to because he was a party to the instrument, and this was the only license the defendants or any of them ever had. It extended only for the five years contemplated by the agreement. With or without parol evidence, we can give the words no larger construction. It is to be noticed, as a confirm-. atory circumstance, that Lawrence was to receive five notes for ten thousand dollars each, running one, two, three, four, and five years from the beginning of the new partnership, and therefore was interested in its success for that time, but that after that he had no interest in it of any kind. Upon this construction of the document, it is unnecessary to advert to the fact that one of the three persons with whom Lawrence dealt has dropped out, and that a new person, has been introduced into the firm. Lodge v. Weld, 139 Mass. 499.

We see no ground for giving the plaintiff profits. The plaintiff has not been competed with unfairly, and his loss bears no relation to the defendants’ gains. He ought not to recover more than compensation for his loss, even if the reasoning of the Supreme Court of the United States should seem to suggest that possibility in patent cases. Tilghman v. Proctor, 125 U. S. 136, 148. Compare Root v. Railway Co. 105 U. S. 189, 214, 215. On the other hand, there is nothing in the act inconsistent with the allowance of damages, or making an injunction the only remedy. Whether that is intended or not is a question of construction not much helped by generalities. See Tilghman v. Proctor, 125 U. S. 136,144. But while we cannot say, as matter of law, that the damages are merely nominal, it is to be observed that neither he nor the estate which he represents has suffered beyond the infraction of a statutory right of prohibition. Decree accordingly.