November 10,2014
Judge Denies Injunction In Dispute Of Beer Distributor vs Visalia Restaurant – Both Use The Name “Sequoia”
Tulare County Superior Court Judge Melinda Reed denied beer distributor Sequoia Beverage’s motion for a preliminary injunction against Sequoia Brewing Company Bar and Grill from using the name Sequoia. The Fresno eatery seeks to open a new location on Main Street in Visalia soon.
The judged said November 10 in a tentative ruling that she would deny the Visalia beer distributor’s claim adding that no great harm would be expected to their distribution business that sells mainly Anheuser-Busch products.
“…The distributor contends it will be greatly injured because the use of the restaurant’s name “will denigrate the substantial goodwill that has been generated by the considerable investments” the distributor has made in advertising and marketing for several years. However, other than submitting information of its’ gross sales and advertising costs, the distributor has presented no specific facts through declaration of third persons, or otherwise, showing its substantial goodwill will be denigrated if the restaurant continues to use its present name. Indeed, it is unclear how the restaurant would unlawfully benefit from the wholesale distributor’s advertising of its products given the different nature of the market each company serves.”
Meanwhile the judge notes that the restaurant would likely suffer harm if it could not use the name in Visalia they have used in Fresno for over a decade.
“On the other hand, the restaurant has shown it is likely to be harmed if unable to use its existing name that has good will in Fresno County. The restaurant reasonably believes its name will be of value in a Visalia restaurant and hopes to capitalize on the success of its Fresno restaurants. In short, this is not an entirely new use that can be easily addressed by a change of name.”
Further Judge Reed reasoned the public would not likely be “confused” over both firms using the name Sequoia given that they trade in different markets.
Indeed there is probably a dozen companies around Visalia that use the name Sequoia to sell cigars, ride the bus,get health care, buy printing,go the mall, get a house built, eat a sandwich or drink cider with little public confusion. Sure,they both sell beer but the beer drinkers are likely not bewildered.
“As to public confusion, the names of both businesses share the words “Sequoia” and “Company” but “Sequoia” is the only significant word which is exactly the same in both names and its use is common in Tulare County based upon the county’s location to Sequoia National Park, Sequoia National Park, and Sequoia National Monument. Moreover, as previously noted, the manner of usage appears to be completely dissimilar given the different markets and customers each business serves. In that regard, unlike the distributor, the restaurant’s name identifies it as a “Bar and Grill.”
The ruling concludes finally, the distributor has not submitted any evidence that the restaurant’s name “contributes to an aura of deception” or that the restaurant has committed any acts “calculated to enhance the appearance of similarity, or unfair or fraudulent business practices” which tend to cause public confusion.”
“ Accordingly, the distributor’s motion for preliminary injunction is denied.”
