Opinion ID: 1491620
Heading Depth: 1
Heading Rank: 3

Heading: Later History.

Text: In February, 1927, the White Satin Mills, Incorporated, became financially embarrassed, and it conveyed all its property to a trustee for the benefit of creditors, including its business and the good will thereof, with power to continue the business. By a separate instrument an attempt was made to transfer the three trade-marks and the good will of the business to the trustee, and in this instrument appeared a claim on the part of John H. Woodward personally to some right, title, or interest in the trade-marks. The trust agreement was not successful, and bankruptcy proceedings followed. March 26, 1927, a voluntary petition was filed. April 4th a receiver was appointed with power to carry on the business. April 16th an adjudication was had. May 11th a trustee was appointed with power to sell the property. Bids were received by the trustee from John H. Woodward and A. L. Luick, and perhaps others. November 28, 1927, the property was sold to A. L. Luick. The sale covered machinery and equipment, tools, office furniture, a number of trade-marks, including those here in controversy, the corporate books and records; together with the good will of the bankrupt's business, and of all business done by the bankrupt under the trade-marks, including the use or abandonment of the corporation name. Meanwhile, in June, 1927, John H. Woodward organized a new corporation, having the name White Satin Sugar Company, and having as its officers, himself as president, his brother Ralph as secretary and treasurer, and his wife as vice president. The corporation immediately started in the business of selling sugar, using the words White Satin in connection therewith, and operating in the same building formerly occupied by the White Satin Mills, Incorporated, and in which were located the equipment and machinery sold by the trustee in bankruptcy to Luick. In July, 1927, the trustee in bankruptcy commenced a suit in equity against the Woodwards and the new corporation, praying for an injunction restraining them from using said trade-marks. This suit was pending when the sale was made by the trustee to Luick as above set out. After the sale to Luick the said suit by the trustee was dismissed on motion of the defendants, on the ground that the trustee had ceased to have any interest in the subject-matter of the suit. Luick, after the sale to him by the trustee in bankruptcy of the assets and equipment of the White Satin Mills, Incorporated, including the trade-marks and the good will of the business, went to the building where the machinery and other equipment were located and where the new White Satin Sugar Company was doing business, and demanded the equipment, machinery, etc., which he had purchased from the trustee in bankruptcy. Woodward refused to allow any of it to be removed. Woodward also threatened certain manufacturers of bags and cartons with suit if they manufactured for Luick bags and cartons having any of the said trade-marks thereon. In January, 1929, the present suit was commenced, the plaintiff being the vendee to whom Luick transferred the property, including the trade-marks, which he had bought from the trustee in bankruptcy. Considerable business in the sale of sugar and flour under said trade-marks has been done by the new White Satin Sugar Company under the management of John H. Woodward since June, 1927; and a small amount of business of similar character has been done by the plaintiff company under the management of Luick.