American Automobile Ins. Co. v. American Auto Club

This case presents the recurrent problem of exclusive right in a generic name or combination of generic names under claim of secondary meaning. The appeal is from a judgment declining.an injunction to appellants, plaintiffs below, prohibiting appellee, defendant below, from the use of the words “American Auto” and “The American Auto Club” in connection with appellee’s business, and in particular with that business as it relates to the sale and solicitation of insurance policies.

Plaintiff corporations are engaged in writing automobile insurance in its various coverages. Two other insurance corporations were purchased by the American Indemnity Corporation about the year 1943 and plaintiffs and these two corporations have a common ownership. The business of the four is .conducted from the same location. Plaintiffs conduct a substantial business and enjoy an excellent reputation in their field of activity. Defendant is incorporated under the name of “American Auto Club” for the purpose of selling to its members the usual motor club services, such as towing, emergency road, bail bond, financial, buying and selling, map, license, etc. Included is assistance in securing adjustments to…