Egg sellers entiltled to injunction against rivals, Appeal Court rules

Egg sellers entiltled to injunction against rivals, Appeal Court rules

The Court of Appeal has ruled that a company selling free-range eggs is entitled to a permanent injunction restraining a competitor from passing off their goods.

The three-judge court today overturned a 2016 High Court ruling that Galway Free Range Eggs Ltd, which sells eggs under the “Galway Free Range Eggs” brand was not entitled to orders against rivals Hillsbrook Eggs Ltd and its directors Kevin O’Brien and his daughter Carmel O’Brien.

It was claimed the defendants passed off their goods as the goods of the plaintiff by offering goods for sale under the name “O’Briens of Galway Free Range Eggs.”

Ms Justice Caroline Costello, sitting with Mr Justice Michael Peart and Mr Justice Brian McGovern held that Galway Free Range Eggs Ltd is entitled to an injunction restraining the defendants from trading under the name “O’Briens of Galway Free Range Eggs.”

Galway Free Range Eggs Ltd of Craigmore, Claregalway had sought various orders restraining the defendants from continuing to packaging their eggs under the name “O’Brien’s of Galway Free Range Eggs”.

The defendants had denied the claims and had opposed the action.

It was claimed that from 2012 onwards the defendants of Barnaderg Tuam, Co Galway began packing their own eggs and selling them as “O Briens of Galway Free Range Eggs.”

The plaintiffs were not happy with this, because of the use of the terminology “Galway Free Range Eggs” on the defendant’s packaging.

In his 2016 judgment, Mr Justice Tony O’Connor found that Galway Free Range Eggs had failed to establish the defendants used the O’Brien name and the geographic name of the egg’s county of origin in a manner which did not accord with honest practices.

The judge also considered consumer survey evidence which was tendered by the parties. However, he said such evidence was limited.

The Judge said the plaintiff company had failed to establish misrepresentation leading to confusion between the parties’ respective egg boxes. The evidence offered by Galway Free Range Eggs he said was tenuous and unreliable, the Judge added.

The plaintiff appealed that decision on grounds including that the High Court had failed to rule on whether or not the plaintiff had established the existence of a reputation or goodwill for its product and in particular its brand name.

Other grounds of appeal included that the High Court did not address the issue of the similarity if brand names, erred in his approach to survey evidence adduced by both parties and misconstrued EU regulations which require egg sellers to mark their products as either free-range, barn eggs or eggs from caged hens.

The appeal was opposed.

Giving the appeal court’s judgment Ms Justice Costello said Galway Free Range Eggs, having established that the defendants had committed the wrongful act of passing off, was entitled to an injunction to protect its reputation and goodwill in its brand name.

The plaintiff the court held had established a substantial reputation in its brand name “Galway Free Range Eggs,” in respect of its products in Galway and the West of Ireland.

The EU regulations compelled the defendants to label their egg cartons as free-range, but could not justify the inclusion of the words free range eggs in their brand name if it would result in passing off their goods as those of the appellant.

Complying with their obligations under the regulations did not entitle the defendants to appropriate the goodwill of the appellant in its brand name or business, the court said,

The High Court had erred in dismissing survey evidence, the Appeal Court also held.

Aodhan O FaolainIreland International News Agency Ltd.

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