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Keywords

contractplaintiffdefendantinjunctiontrialmotiontrademarknovationjury trial

contractplaintiffdefendantdamagestrialpleamotiontrademarkcivil procedurejury trial

Related Cases

McCullough v. Dairy Queen, Inc., 194 F.Supp. 686, 4 Fed.R.Serv.2d 697, 129 U.S.P.Q. 400

Facts

The plaintiffs licensed the defendant to use their registered trademark 'Dairy Queen' in 1949, but the defendant allegedly breached the contract in 1954 by failing to pay the required minimum yearly sum. Following this breach, the plaintiffs claimed that the defendant continued to infringe on their trademark and sought a declaration that the licensing contract was void, an accounting of profits, and a permanent injunction against the defendant's use of the trademark. The defendant admitted the contract's existence but argued that an oral agreement constituted a novation, claiming they were not in breach.

‘The complaint alleges that the defendant entered into a contract with the plaintiffs in 1949 whereby the plaintiffs licensed the defendant to use the plaintiffs' registered trademark ‘Dairy Queen’ and permitted the defendant to sub-license others to use the trade name.’

Issue

Whether the defendant is entitled to a jury trial given that the plaintiffs' claims are purely equitable in nature.

‘Whether the plaintiffs' claim be viewed as a claim for relief for infringement of a trademark, or a prayer to set aside the licensing agreement and restore to the plaintiffs their exclusive right to the use of the trademark ‘Dairy Queen’ in Pennsylvania, or a claim to injunctive relief coupled with an incidental claim for damages, all issues raised thereby are for the Court's determination.’

Rule

The right to a jury trial is preserved under the Seventh Amendment, but the distinction between legal and equitable actions must be considered to determine this right. The form of relief sought in the complaint is a significant factor in characterizing the issues as equitable or legal.

‘It is settled law that although the Federal Rules of Civil Procedure provide for ‘one form of action’— a civil action— , the traditional distinction between legal and equitable actions must be referred to in order to determine a party's right to a jury trial.’

Analysis

The court analyzed the nature of the plaintiffs' claims, concluding that they were purely equitable, regardless of whether they were viewed as seeking relief for trademark infringement or as a request to set aside the licensing agreement. The court noted that the defendant's answer did not raise any legal issues that would entitle them to a jury trial, as all issues presented were equitable in nature.

‘As we analyze the issues raised by the complaint and the answer, the nature of the plaintiffs' case is purely equitable.’

Conclusion

The court granted the plaintiffs' motion to strike the defendant's demand for a jury trial, determining that the case would be heard on its merits without a jury.

‘For the foregoing reasons, we enter the following Order: And now, to wit, this 1st day of June, 1961, it is ordered that the plaintiffs' motion to strike the defendant's demand for a trial by jury is hereby granted.’

Who won?

Plaintiffs prevailed in the case because the court found that the nature of their claims was purely equitable, thus negating the defendant's right to a jury trial.

‘Therefore, we think neither party has the right to a jury trial of any of the issues raised by the pleadings in this case.’

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