Advanced Med., Inc. v. Advanced Med. Sys., Inc.
| Docket Number: | 2007-CA-00516-COA | |
| Court of Appeals: |
Opinion Link Opinion Date: 07-29-2008 Opinion Author: LEE, P.J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Change of corporate name Judge(s) Concurring: KING, C.J., MYERS, P.J., IRVING, CHANDLER, GRIFFIS, BARNES, ISHEE, ROBERTS AND CARLTON, JJ. Procedural History: Bench Trial Nature of the Case: CIVIL - OTHER |
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| Trial Court: |
Date of Trial Judgment: 03-02-2007 Appealed from: Harrison County Chancery Court Judge: Margaret Alfonso Disposition: JUDGMENT ENJOINING THE APPELLANT FROM USING THE NAME "ADVANCED MEDICAL" AS ITS BUSINESS NAME ON THE MISSISSIPPI GULF COAST Case Number: 2401-06-01492(2) |
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| Party Name: | Attorney Name: | Brief(s) Available: | ||
| Appellant: | ADVANCED MEDICAL, INC. |
WILLIAM P. FEATHERSTON |
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| Appellee: | ADVANCED MEDICAL SYSTEMS, INC. | ROBERT H. KOON |
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Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Change of corporate name |
| Summary of the Facts: | Advanced Medical Systems, Inc. has been doing business on the Mississippi Gulf Coast since March 1999. The business was incorporated on March 23, 2005. AMS sells durable medical equipment, but it does not sell pharmaceutical products. Advanced Medical, Inc. filed articles of incorporation on March 11, 2005. Shortly thereafter, the company dissolved and reincorporated on June 30, 2005. Advanced Medical began doing business on the Mississippi Gulf Coast in July 2005. Both businesses sell wheelchairs and Continuous Positive Airway Pressure machines. Sometime after Advanced Medical began operating, AMS experienced problems caused by the similar names of the two companies, including loss of business and billing issues. AMS filed a complaint in chancery court for revocation, dissolution, or to force a change of corporate name against Advanced Medical. The chancellor entered her judgment enjoining Advanced Medical from using the name “Advanced Medical” as its business name on the Mississippi Gulf Coast. Advanced Medical appeals. |
| Summary of Opinion Analysis: | Advanced Medical argues that its business name was incorporated first and that AMS failed to provide adequate proof to support its claim. In granting a charter to a corporation, this State is merely authorizing the use of the name, not determining the legal right in using the name. AMS was required to show that the name “Advanced Medical” had acquired a special significance in the markets for the products it sold. AMS showed lost business in sales of specific medical equipment, serious billing issues, and at least twenty-four instances of public confusion between the companies’ identities during a six-month period. Thus, the chancellor did not abuse her discretion in enjoining Advanced Medical from using the name “Advanced Medical.” |
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