upon the good will, and constitutes what the statute denominates 'unfair competition'".
The Supreme Court in the case aforesaid holds that prices in respect of "identified" goods may be fixed under legislative leave and the primary aim of such a law is to protect the property -- namely, the good will -- of the producer, and redress or relief will be granted upon the ground that a party has a valuable interest in the good will of his trade or business and in the trade marks adopted to maintain and extend it.
In Miles Laboratories v. Seignious, supra, the court considered the South Carolina Fair Trade Act, and held, that the right of the plaintiff to sell its products in South Carolina and to realize upon the value of its good will therein established, was threatened with disruption by the price-cutting activities of the defendant and the vast amount spent by Miles Laboratories in advertising and the resulting substantial volume of sales of its products, established the value of its right to distribute the product to the public in South Carolina as being substantially in excess of the jurisdictional amount of $3,000, exclusive of interest and costs.
The plaintiff has a right to protect its property, namely, its good will, by price restriction, and the sale of its "identified" goods at less than the price fixed by it is an assault upon said good will and constitutes "unfair competition".
The proof herein that since the Caron Corporation was incorporated in 1923, the sales of its "identified" commodities have been in excess of $14,000,000, and its advertising expenditures in excess of $1,700,000; that it has approximately 2,500 accounts throughout the United States, 42 in New Jersey and 11 within the City of Newark, are elements which establish that the value of the right which the plaintiff seeks to protect, exceeds the jurisdictional amount of $3,000, exclusive of interest and costs.
The defendants rely upon McNutt, Governor of Indiana, et al. v. General Motors Acceptance Corporation of Indiana, Inc.,
and Kvos, Inc., v. Associated Press
The McNutt case involves a statute regulating auto financing. It follows the general rule that "the value of the object or right to be protected against interference" is the standard for determining whether or not the jurisdictional amount is involved. However, the court said this right to be protected against interference was not the broad right to conduct the business which would be measured by the value of the business, but the specific right to be free of regulation "measured by the loss, if any, which would follow the enforcement of the rules prescribed".
The Associated Press case was a suit to enjoin a radio station from pirating news gathered by the Associated Service. The court followed the McNutt formula and dismissed as irrelevant, general facts about annual expenditures and the magnitude of the operations of the Association. The attempt by the Association to prove specific damage was also dismissed, not as irrelevant, but as unsatisfactory.
Neither case had to do with the sale of "identified" commodities and price restriction as an appropriate means of protecting good will, they are distinguishable.
The motions of the defendants are denied and a preliminary injunction will be granted the plaintiff.