283 Neb. 77•Prime Home Care v. Pathways to Compassion
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consulted with experts on fingerprint evidence and the reli ability of eyewitness identification.70 But, while we know such rebuttal evidence was not presented at trial, the record does not establish whether trial counsel considered or explored such strategies, what may or may not have led trial counsel not to pursue the strategies, or what such experts would have said had they been retained and called to testify. In other words, from our review of the record, we cannot make any mean ingful determination whether expert testimony beneficial to Nolan could have been produced or, if it could have, whether trial counsel made a reasonable strategic decision not to pre sent certain evidence.71 The record is, therefore, not sufficient to adequately review these claims on direct appeal, and we decline to consider them at this time.72 IV. CONCLUSION For each of the foregoing reasons, the judgment of the dis trict court is affirmed. A ffirmed. Wright, J., not participating. 70 See, e.g., People v. Abney, 13 N.Y.3d 251, 918 N.E.2d 486, 889 N.Y.S.2d 890 (2009); People v. McDonald, 37 Cal. 3d 351, 690 P.2d 709, 208 Cal. Rptr. 236 (1984), overruled on other grounds, People v. Mendoza, 23 Cal. 4th 896, 4 P.3d 265, 98 Cal. Rptr. 2d 431 (2000). See, also, State v. Clopten, 223 P.3d 1103 (Utah 2009) (collecting cases). 71 See Young, supra note 65. 72 See id. See, also, State v. Pullens, 281 Neb. 828, 800 N.W.2d 202 (2011); State v. Sidzyik, 281 Neb. 305, 795 N.W.2d 281 (2011). PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 77 Cite as 283 Neb. 77 P rime home CAre , LLC, APPeLLee And Cross -APPeLLAnt, v. PAthWAys to C omPAssion, LLC, APPeLLAnt And Cross -APPeLLee . 809 N.W.2d 751 Filed January 20, 2012. No. S 11 030. 1. Injunction: Equity.a n action for injunction sounds in equity. 2. Equity: Appeal and Error. In an appeal of an equity action, an appellate court tries factual questions de novo on the record and reaches a conclusion Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 11/01/2026 04:42 AM CST
independent of the findings of the trial court, provided, where credible evidence is in conflict on a material issue of fact, the appellate court considers and may give weight to the fact that the trial judge heard and observed the witnesses and accepted one version of the facts rather than another. 3. Trial: Expert Witnesses: Appeal and Error.a trial court’s ruling in receiving or excluding an expert’s testimony which is otherwise relevant will be reversed only when there has been an abuse of discretion. 4. Names. The registration of trade names in Nebraska is governed by the Trademark Registrationa ct, Neb. Rev. Stat. §§ 87 126 to 87 144 (Reissue 2008). 5. ____. The evil sought to be eliminated by trade name protection is confusion. 6. Names: Proof. In a case for trade name infringement, the plaintiff has the burden to prove by a preponderance of the evidence the existence of (1) a valid trade name entitled to protection and (2) a substantial similarity between the plaintiff’s and the defendant’s names, which would result in either actual or probable decep tion or confusion by ordinary persons dealing with ordinary caution. 7. ____: ____. Descriptive trademarks are entitled to protection only if the plaintiff can prove secondary meaning under the common law. To establish secondary meaning, a party must show by a preponderance of the evidence that the primary significance of the term in the mind of the consuming public is not the product but the producer. 8. ____: ____. Secondary meaning can be established for trade name protection in many ways, including, but not limited to, direct consumer testimony; survey evidence; exclusivity, manner, and length of use of a mark; amount and manner of advertising; amount of sales and number of customers; established place in the market; and proof of intentional copying by the defendant. 9. Names. One of the factors to be considered as to whether a trademark has acquired secondary meaning is whether actual purchasers of the product bearing the claimed trademark associate the trademark with the producer. 10. ____. Once a party has demonstrated that there is a protectable trade name, either by demonstrating that the name is distinctive or by proving secondary mean ing, the next step is to determine whether there has been an infringement on the trade name. 11. Names: Proof. The likelihood of confusion in the use of trade names can be shown by presenting circumstances from which courts might conclude that per sons are likely to transact business with one party under the belief they are deal ing with another party. If the similarity is such as to mislead purchasers or those doing business with the company, acting with ordinary and reasonable caution, or if the similarity is calculated to deceive the ordinary buyer in ordinary conditions, it is sufficient to entitle the one first adopting the name to relief. 12. Names.a mong the considerations for determining whether trade name confusion exists are (1) degree of similarity in the products offered for sale; (2) geographic separation of the two enterprises and the extent to which their trade areas over lap; (3) extent to which the stores are in actual competition; (4) duration of use without actual confusion; and (5) the actual similarity, visually and phonetically, between the two trade names. 13. Rules of Evidence: Appeal and Error. The admission of evidence is reviewed for abuse of discretion where the Nebraska Evidence Rules commit the eviden tiary question at issue to the discretion of the trial court. 78 283NEBR aSkaREPORTS
14. Pleadings. The pleadings in a cause are not mere ordinary admissions for the purposes of use in that suit, but are judicial admissions. 15. Pleadings: Evidence: Waiver. In effect, pleadings are not a means of evidence, but a waiver of all controversy, so far as the opponent may desire to take advan tage of them, and therefore, a limitation of the issues. 16. Pleadings: Evidence.a ny reference that may be made to pleadings, where the one party desires to avail himself or herself of the other’s pleading, is not a proc ess of using evidence, but an invocation of the right to confine the issues and to insist on treating as established the facts admitted in the pleadings. 17. ____: ____. Judicial admissions must be unequivocal, deliberate, and clear, and not the product of mistake or inadvertence. 18. Attorney Fees: Appeal and Error.a n appellate court reviews the award of attor ney fees for an abuse of discretion. 19. Attorney Fees. To determine proper and reasonable fees, it is necessary for the court to consider the nature of the litigation, the time and labor required, the nov elty and difficulty of the questions raised, the skill required to properly conduct the case, the responsibility assumed, the care and diligence exhibited, the result of the suit, the character and standing of the attorney, and the customary charges of the bar for similar services. 20. Judges: Words and Phrases.a judicial abuse of discretion exists when the reasons or rulings of a trial judge are clearly untenable, unfairly depriving a litigant of a substantial right and denying just results in matters submitted for disposition. appeal from the District Court for Douglas County: JAmes t. gLeAson, Judge.a ffirmed. Patrick D. Pepper, ofm cGrath, North,m ullin &k ratz, P.C., L.L.O., for appellant. Tiernan T. Siems anda ndrewm . Collins, of Erickson & Sederstrom, P.C., for appellee. heAviCAn, C.J., Wright, C onnoLLy, gerrArd, stePhAn, mCC ormACk , and miLLer-L ermAn, JJ. heAviCAn, C.J. I. INTRODUCTION Following a bench trial, Pathways to Compassion, LLC (Pathways), appeals from the decision of the Douglas County District Court granting Primeh ome Care, LLC, a perma nent injunction and attorney fees. Primeh ome Care sought a permanent injunction pursuant to Neb. Rev. Stat. § 87 217 (Supp. 2011), part of the statutes governing the protection PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 79 Cite as 283 Neb. 77
of trade names, and Neb. Rev. Stat. § 87 303 (Cum. Supp. 2010), part of the Uniform Deceptive Trade Practicesa ct,1 to prevent Pathways from using the name “Compassionate Care hospice.” Pathways appeals, contending that “Compassionate Careh ospice” was too descriptive to be protectable as a reg istered trade name under either § 87 217 or § 87 303. Prime home Care cross appealed, alleging that it is owed additional attorney fees and, because Pathways did not have a registered Nebraska agent at the time of the suit, that Primeh ome Care should have been granted a default judgment. We affirm the decision of the district court. II. BaCkGROUND Jacquelinek . Ross, the owner and operator of both Prime home Care and “Compassionate Careh ospice,” testified during the bench trial that she had been a partner in Nurses inm otion, L.L.C., which registered the trade name “Compassion Care hospice” in 2003.a t trial, Ross testified that “Compassion Careh ospice” was a typographical error and that the com pany had always presented itself as “Compassionate Care hospice.” Nurses inm otion assigned the registration of the trade name “Compassion Careh ospice” to Primeh ome Care in September 2005. In November 2006, pursuant to Neb. Rev. Stat. § 87 130 (Reissue 2008), Primeh ome Care filed an application to register the trade name “Compassionate Careh ospice” with the Secretary of State. In that application, Primeh ome Care stated that the name had been in use since October 1, 2006. at the same time, apparently in order to clear up any confu sion, Primeh ome Care filed with the Secretary of State a notice of “Consent to Use of Similar Trade Name,” allowing Primeh ome Care to use both “Compassion Careh ospice” and “Compassionate Careh ospice.” The Secretary of State allowed Primeh ome Care to register both names. Judith Grey is the chief operating officer of “Compassionate Careh ospice Group,” which operates hospice facilities in 19 1 See Neb. Rev. Stat. §§ 87 301 to 87 306 (Reissue 2008 & Cum. Supp. 2010). 80 283NEBR aSkaREPORTS
different states. When the group expanded into Nebraska in 2009, it filed a request with the Secretary of State to form a limited liability corporation under the name “Compassionate Careh ospice of Nebraska, LLC.” The Secretary of State sent out a rejection notice onm arch 11, which stated: The requested name is not available at this time as we currently have “Compassion Careh ospice” and “Compassionate Careh ospice” on file. To continue to file under the requested name original letters of consent from these entities must accompany the articles. If consent is not an option, please re file under an available name. at that point, Grey formed a limited liability corporation under the name “Pathways to Compassion, LLC.” Grey was listed as the registered agent, but was not at the time a Nebraska resident as required under Neb. Rev. Stat. § 21 2609 (Reissue 2007). however, at some point during the proceedings, Pathways named a Nebraska resident as its registered agent. From the time it expanded into Nebraska, Pathways did business as “Compassionate Careh ospice of Nebraska,” even after Pathways had received the above notice and had discov ered that a company called “Compassionate Careh ospice” was doing business in the Omaha, Nebraska, area. One of the managers of Pathways approached Ross to request permission to use the name “Compassionate Careh ospice of Nebraska,” which permission Ross denied. Ross’ attorney sent Pathways a cease and desist letter, requesting that it not use the trade name “Compassionate Careh ospice.” Grey testified that she continued using the name after receiving the cease and desist letter. Grey acknowledged that she also received a letter from the Nebraskaa ttorney General’s office informing her that the use of “Compassionate Careh ospice” could result in crimi nal charges for deceptive trade practices.a t trial, when asked about the letters, Grey repeatedly said, “I turned [them] over to my attorney.” She eventually admitted that she was waiting for the outcome of this case to decide whether to cease using the name “Compassionate Careh ospice.” Primeh ome Care filed this action alleging that Pathways’ use of “Compassionate Careh ospice” injured Primeh ome Care’s business and caused confusion in the market, constituting a PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 81 Cite as 283 Neb. 77
deceptive trade practice. The district court agreed, finding that “Compassionate Careh ospice” was not so generic as to be unregistrable but that even if merely descriptive, it had acquired secondary meaning as applied to Primeh ome Care’s business. The district court entered a permanent injunction and granted attorney fees in the amount of $27,500. Pathways appealed, and Primeh ome Care cross appealed. III.a SSIGNmENTS OF ERROR Pathways assigns, consolidated and restated, that the dis trict court erred in (1) granting Primeh ome Care’s request for a permanent injunction and attorney fees; (2) finding that Pathways violated the Uniform Deceptive Trade Practicesa ct; and (3) admitting exhibit 37, a document entitled “assignment of Registration of Trade Name” between Nurses inm otion and Primeh ome Care. In its cross appeal, Primeh ome Care assigns that the dis trict court erred in (1) denying its motion for default as a result of Pathways’ failure to designate a proper registered agent, (2) not awarding the full amount of attorney fees requested, and (3) admitting Pathways’ expert witness testimony. IV. STaNDaRD OF REVIEW [1]a n action for injunction sounds in equity.2 [2] In an appeal of an equity action, an appellate court tries factual questions de novo on the record and reaches a conclu sion independent of the findings of the trial court, provided, where credible evidence is in conflict on a material issue of fact, the appellate court considers and may give weight to the fact that the trial judge heard and observed the witnesses and accepted one version of the facts rather than another.3 [3]a trial court’s ruling in receiving or excluding an expert’s testimony which is otherwise relevant will be reversed only when there has been an abuse of discretion.4 2 Nebraska Irrigation, Inc. v. Koch, 246 Neb. 856, 523 N.W.2d 676 (1994). 3 Id. 4 Carlson v. Okerstrom, 267 Neb. 397, 675 N.W.2d 89 (2004). 82 283NEBR aSkaREPORTS
V.a NaLYSIS 1. A rguments on APPeAL (a) Trial Court Did Not Err in Granting Injunction ora ttorney Fees Pathways’ brief lists multiple assignments of error related to the district court’s decision to grant Primeh ome Care’s motion for an injunction and attorney fees and in the related findings of fact. We address these assignments of error together. Pathways first argues that the trial court erred in granting Primeh ome Care’s request for an injunction and attorney fees pursuant to § 87 217, part of the statutes governing the protection of trade names, and § 87 303, part of the Uniform Deceptive Trade Practicesa ct. Pathways’ argument rests on its contention that “Compassionate Careh ospice” is merely descriptive and therefore is not a protectable trade name. [4] The registration of trade names in Nebraska is governed by the Trademark Registrationa ct.5 Section 87 130 sets forth the requirements for an application for registration of a trade name, which is then approved or denied by the Nebraska Secretary of State. Under Neb. Rev. Stat. § 87 209(5)(a) (Supp. 2011), a trade name will not be registered if it [i]s merely descriptive or misdescriptive . . . . The Secretary of State may accept as evidence that a trade name has become distinctive proof of continuous use by the applicant as a trade name in this state or elsewhere for five years preceding the date of the filing of the applica tion for registration. Section 87 217 provides in part: any registrant of a trade name may proceed by suit to enjoin the use, display, or sale of any counterfeits or imitations thereof, and a court of competent jurisdiction may restrain such use, display, or sale on terms which the court deems just and reasonable and may require the defendants to pay to the registrant (1) all profits attributable to the wrongful use, display, or sale, (2) all 5 See Neb. Rev. Stat. §§ 87 126 to 87 144 (Reissue 2008). PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 83 Cite as 283 Neb. 77
damages caused by the wrongful use, display, or sale, or (3) both such profits and damages, and reasonable attorney’s fees. [5,6] The evil sought to be eliminated by trade name protec tion is confusion.6 In a case for trade name infringement, the plaintiff has the burden to prove by a preponderance of the evidence the existence of (1) a valid trade name entitled to pro tection and (2) a substantial similarity between the plaintiff’s and the defendant’s names, which would result in either actual or probable deception or confusion by ordinary persons dealing with ordinary caution.7 (b) “Compassionate Careh ospice”a cquired Secondarym eaning Pathways’ argument rests on the premise that “Compassionate Careh ospice” is merely descriptive and has not acquired sec ondary meaning. Under § 87 209(5)(a), a trade name shall not be registered if it is “merely descriptive or misdescriptive.” The district court found that “Compassionate Careh ospice” was not merely descriptive but that even if it was, the name had acquired secondary meaning, which requires that the consum ing public associates the name with the source, rather than with the product itself.8 We decline to address whether the district court erred in determining that “Compassionate Careh ospice” was not merely descriptive because we find that, in any event, the name had acquired secondary meaning as it concerned Primeh ome Care’s hospice services. although existing Nebraska case law mentions “secondary meaning,” this court has not yet had cause to address what evi dence is required to prove such.9 Pathways urges us to look to federal authority for direction in interpreting the Lanhama ct, 6 Equitable Bldg. & Loan v. Equitable Mortgage, 11 Neb.a pp. 850, 662 N.W.2d 205 (2003). 7 Id. 8 See Dastar Corp. v. Twentieth Century Fox Film Corp., 539 U.S. 23, 123 S. Ct. 2041, 156 L. Ed. 2d 18 (2003). 9 Ransdell v. Sixth Street Food Store, 174 Neb. 875, 120 N.W.2d 290 (1963); Equitable Bldg. & Loan, supra note 6. 84 283NEBR aSkaREPORTS
also known as the Trademarka ct of 1946,10 because that act is very similar to Nebraska’s Trademark Registrationa ct. We agree that federal law is instructive, and we adopt the require ments for trade name protection defining secondary meaning as set out in federal case law. [7,8] Under the Lanhama ct, a plaintiff alleging trademark infringement has to prove first that the trademark is entitled to protection and, second, that the defendant’s use of a trademark will cause confusion.11 Descriptive trademarks are entitled to protection only if the plaintiff can prove secondary meaning under the common law.12 To establish secondary meaning, a party must show by a preponderance of the evidence that the primary significance of the term in the mind of the consum ing public is not the product but the producer.13 Under fed eral law, [s]econdary meaning can be established in many ways, including (but not limited to) direct consumer testimony; survey evidence; exclusivity, manner, and length of use of a trademark; amount and manner of advertising; amount of sales and number of customers; established place in the market; and proof of intentional copying by the defendant.14 Pathways claims that Primeh ome Care did not present suf ficient evidence to prove secondary meaning. We disagree. (i) Testimony of Consumers [9] One of the factors to be considered as to whether a trademark has acquired secondary meaning is whether actual 10 See 15 U.S.C. §§ 1051 to 1141n (2006 & Supp. IV 2010). 11 Gruner + Jahr USA Pub. v. Meredith Corp., 991 F.2d 1072 (2d Cir. 1993). 12 Id. 13 General Motors Corp. v. Lanard Toys, Inc., 468 F.3d 405 (6th Cir. 2006). 14 Filipino Yellow Pgs. v. Asian Journal Publications, 198 F.3d 1143, 1151 (9th Cir. 1999). See, also, Gruner + Jahr USA Pub., supra note 11; Spraying Systems Co. v. Delavan, Inc., 975 F.2d 387 (7th Cir. 1992); International Kennel Club v. Mighty Star, Inc., 846 F.2d 1079 (7th Cir. 1988); American Scientific Chem. v. American Hosp. Supply, 690 F.2d 791 (9th Cir. 1982). PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 85 Cite as 283 Neb. 77
purchasers of the product bearing the claimed trademark asso ciate the trademark with the producer.15 Primeh ome Care presented witness testimony from the acting administrative director of an assisted living facility, who testified that he had referred patients to Compassionate Careh ospice in the past and that he associates that name with Ross, the owner of Primeh ome Care.a n administrator at another assisted living facility also testified that she had referred patients to Prime home Care and that she associated the name “Compassionate Careh ospice” with Ross and Primeh ome Care. Primeh ome Care’s community outreach director, who as a former adminis trator with an assisted living facility had also made referrals to “Compassionate Careh ospice,” testified that he associated the name with Ross. Pathways claims that Primeh ome Care should have pre sented a great deal more testimony from actual consumers, but the evidence at trial suggested Primeh ome Care had a relatively small market share. Ross testified that at the time of trial, Primeh ome Care had only 12 patients. Ross further testified that the Omaha hospice market was very small and that “Compassionate Careh ospice” served fewer clients than did some of the other hospice providers in the area. Prime home Care argues that the number of people who did testify is proportionate to the actual consuming public and thus suffi cient to show that consumers associated “Compassionate Care hospice” with Ross and her company. (ii) Degree and Manner of Advertising Primeh ome Care also entered as evidence advertising it had utilized, including business cards, brochures, telephone book advertisements, pill boxes, pens, and note pads.a lthough some of the items advertised Primeh ome Care and “Compassionate Careh ospice” side by side, other items, such as the brochures, advertised only “Compassionate Careh ospice.” Ross testified that “Compassionate Careh ospice” markets itself mostly face to face, but that it also advertises in the telephone book and disseminates brochures. Ross testified that employees of Prime 15 Filipino Yellow Pgs., supra note 14. 86 283NEBR aSkaREPORTS
home Care belong to a number of different committees, such as the Bellevue Fire and Rescue Division, and that employees market through participation in those committees. Ross stated that Primeh ome Care also conducts seminars and presenta tions designed to increase referrals to its services. During trial, Ross was asked how much Primeh ome Care had spent on advertising for “Compassionate Careh ospice” since 2003. Ross stated her accountant told her that Prime home Care had spent $120,000 during that time period but that she believed that number was not an accurate reflection of funds actually spent on advertising. Ross stated that the figure did not include her salary or the salaries of other marketers and that it was her opinion that $500,000 to $600,000 would be a more accurate figure. a nurse marketer for Primeh ome Care testified that she worked on marketing and increasing Primeh ome Care’s cli ent base. She stated that she had given presentations to physi cians and social workers regarding Primeh ome Care’s hospice care services. She testified that Primeh ome Care is a small, local operation and that it did business as “Compassionate Careh ospice.” (iii) Length and Manner of Use of Claimed Trademark Pathways has several assignments of error related to the dis trict court’s admission of evidence and findings of fact regard ing Primeh ome Care, or its predecessor’s, use of the name prior to October 1, 2006. Pathways’ arguments rest on two assumptions. The first assumption is that Primeh ome Care’s complaint constituted a judicial admission and that no evidence of its use prior to October 1, 2006, should have been admitted. and the second assumption is that the record does not support a finding that Primeh ome Care established secondary meaning through continuous use. We discuss the admission of exhibit 37, the “assignment of Registration of Trade Name,” below, and determine that Primeh ome Care’s complaint was not a judicial admission that precluded admitting evidence of Prime home Care’s use of “Compassionate Careh ospice” prior to October 1, 2006. PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 87 Cite as 283 Neb. 77
Furthermore, after our de novo review of the record, we find the record does support the following facts: Ross and her partner in Nurses inm otion first registered “Compassion Care hospice” in 2003. Ross testified that the name on the regis tration was a typographical error and that Nurses inm otion had actually used the name “Compassionate Careh ospice” continuously since 2003. Nurses inm otion assigned the name to Primeh ome Care in 2005, and Primeh ome Care filed a trade name registration for the name in 2006.a t the same time, Primeh ome Care filed a notice allowing the use of a similar trade name. Therefore, at the time of trial, Primeh ome Care or its predecessor had been using the name “Compassionate Careh ospice” for 6 years or more. Ross further stated that Primeh ome Care’s hospice services were certified by medicare and licensed by the State of Nebraska under the name “Compassionate Careh ospice.” (iv) Exclusive Use of Trademark after Pathways began doing business in Nebraska, Primeh ome Care took immediate steps to protect its trade name.a lthough Pathways had operated outside Nebraska as “Compassionate Careh ospice” or “Compassionate Care hospice Group,” Primeh ome Care presented evidence at trial that it did business as “Compassionate Careh ospice” exclu sively in Nebraska for 6 years prior to Pathways’ expansion into this state. The district court found that Primeh ome Care had met its burden to show that “Compassionate Careh ospice” had attained secondary meaning as related to Primeh ome Care’s hospice services. Specifically, the district court found that Primeh ome Care, or its predecessor, had been using the name continuously since 2003, and referral sources testified that they associated “Compassionate Careh ospice” with Ross of Primeh ome Care. We review the district court’s findings de novo on the record. Given the evidence outlined above, we find that the district court did not err. having determined the district court did not err when it found that “Compassionate Careh ospice” had second ary meaning, we next turn to whether the district court erred 88 283NEBR aSkaREPORTS
when it granted Primeh ome Care’s request for a permanent injunction. (c) Injunction and Likelihood of Confusion Under § 87 209(6), protection is given to trade names registered in this State. Section 87 217 provides that “[a]ny registrant of a trade name may proceed by suit to enjoin the use, display, or sale of any counterfeits or imitations thereof, and a court of competent jurisdiction may restrain such use, display, or sale on terms which the court deems just and reasonable . . . .” [10] We set forth the requirements for granting an injunc tion to protect a trade name in Nebraska Irrigation, Inc. v. Koch.16 Once a party has demonstrated that there is a protect able trade name, either by demonstrating that the name is distinctive or by proving secondary meaning, the next step is to determine whether there has been an infringement on the trade name.17 We have determined that Primeh ome Care demonstrated it had a protectable trade name, because it established that “Compassionate Careh ospice” had attained secondary meaning in this state as related to Primeh ome Care. But in order to obtain a permanent injunction, Prime home Care bears the burden of proving that there was a like lihood of confusion.18 [11,12] The likelihood of confusion in the use of trade names can be shown by presenting circumstances from which courts might conclude that persons are likely to transact busi ness with one party under the belief they are dealing with another party. If the similarity is such as to mislead purchas ers or those doing business with the company, acting with ordinary and reasonable caution, or if the similarity is cal culated to deceive the ordinary buyer in ordinary conditions, it is sufficient to entitle the one first adopting the name to relief.19a mong the considerations for determining whether 16 Nebraska Irrigation, Inc., supra note 2. 17 See id. 18 See id. 19 Id. PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 89 Cite as 283 Neb. 77
trade name confusion exists are (1) degree of similarity in the products offered for sale; (2) geographic separation of the two enterprises and the extent to which their trade areas overlap; (3) extent to which the stores are in actual competi tion; (4) duration of use without actual confusion; and (5) the actual similarity, visually and phonetically, between the two trade names.20 (i) Degree of Similarity of Product and Trade Name In this case, the two trade names are essentially identi cal. Primeh ome Care used “Compassionate Careh ospice” and sometimes “Primeh ome Care and Compassionate Care hospice.” Pathways did business as “Compassionate Care hospice of Nebraska.” Ross testified at trial that at least on one occasion, a Pathways representative stated that she worked for “Compassionate Careh ospice.” Furthermore, both Pathways and Primeh ome Care offer identical or nearly iden tical services. (ii) Geographical Trade Areas and Competition Both Primeh ome Care and Pathways operate within the Omaha area, and both market to the same groups. One of Ross’ business associates informed Ross that she had seen the name “Compassionate Careh ospice” on a building in the same geographic region. Ross also testified that she was at a seminar when a representative from Pathways was present and was using the name “Compassionate Careh ospice.” From the record, it is clear that Primeh ome Care and Pathways were operating in the same geographical area and competing for the same or similar clients. (iii) Duration of Use Without Actual Confusion Several witnesses for Primeh ome Care testified that they were confused by Pathways’ use of the name. Witnesses who had referred clients to Primeh ome Care testified that they had been confused by the appearance of “Compassionate Careh ospice of Nebraska” in the area. Primeh ome Care’s 20 Id. 90 283NEBR aSkaREPORTS
community outreach director testified that one of Primeh ome Care’s clients had mistaken Pathways for Primeh ome Care. The confusion appears to have arisen very soon after Pathways expanded into Nebraska. Primeh ome Care presented sufficient evidence to show that Pathways was operating a business with a nearly identi cal name in the same geographical area and serving the same or similar clients. Primeh ome Care also presented evidence that consumers had been confused between the two names. We find the district court did not err when it found that confusion existed as a result of Pathways’ use of Primeh ome Care’s pro tected trade name. (d)a ttorney Fees We next turn to Pathways’ claim that the trial court erred in its award of attorney fees. Primeh ome Care sought attorney fees under both § 87 217, which addresses trade name infringe ment, and § 87 303, which is part of the Uniform Deceptive Trade Practicesa ct. We therefore address Pathways’ argument that the district court erred in finding that Pathways had vio lated the Uniform Deceptive Trade Practicesa ct, in conjunc tion with its argument that the district court erred when it awarded Primeh ome Care attorney fees.a s discussed below, we find that Primeh ome Care could have recovered attorney fees under either § 87 217 or § 87 303. Pathways claims the trial court could award attorney fees only if Primeh ome Care can prove that it willfully engaged in a trade practice it knew to be deceptive. But § 87 217, quoted above, provides that a trade name registrant may receive rea sonable attorney fees in a case for trade name infringement where no such deception is required.a s discussed above, the district court did not err in granting Primeh ome Care’s request for an injunction and Primeh ome Care showed that a likeli hood of confusion existed. Under § 87 217, Primeh ome Care is entitled to reasonable attorney fees. Primeh ome Care also sought attorney fees under § 87 303, part of the Uniform Deceptive Trade Practicesa ct. Pathways claims that because it had a good faith belief that it could use the trade name “Compassionate Careh ospice,” the district PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 91 Cite as 283 Neb. 77
court erred when it found that Pathways had violated the act. Under § 87 302, “a person engages in a deceptive trade prac tice when, in the course of his or her business, vocation, or occupation, he or she . . . [c]auses likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services” or “[c]auses likelihood of confusion or of misunderstanding as to affiliation, connection, or association with, or certification by, another.” as noted above, Primeh ome Care presented evidence that Pathways knew the trade name “Compassionate Careh ospice” was already in use when it expanded into Nebraska. Pathways continued to do business under that name even after being notified by the Secretary of State that “Compassionate Care hospice” was in use and after Ross’ attorney sent a cease and desist letter. hence, we find that the district court did not err in determin ing that Pathways had engaged in deceptive trade practices or in granting Primeh ome Care’s request for attorney fees under either § 87 217 or § 87 303. These assignments of error are without merit. (e) Trial Court Did Not Err When It admitted Exhibit 37 In its next assignment of error, Pathways argues that the trial court erred by admitting exhibit 37, which was the “assignment of Registration of Trade Name” between Nurses inm otion and Primeh ome Care. Primeh ome Care’s amended complaint stated that it had “registered the trade name ‘Compassionate Careh ospice,’ under which it had conducted business in Nebraska since October 1, 2006 in con nection with its home healthcare and hospice care business.” Exhibit 37 appears to support Primeh ome Care’s contention that some form of the name “Compassionate Careh ospice” was in use prior to October 1, 2006, the date of the trade name registration. Pathways claims that because Primeh ome Care made a judicial admission in its amended complaint, exhibit 37 should not have been admitted. [13 16] The admission of evidence is reviewed for abuse of discretion where the Nebraska Evidence Rules commit the evidentiary question at issue to the discretion of the trial 92 283NEBR aSkaREPORTS
court.21 The pleadings in a cause are not mere ordinary admis sions for the purposes of use in that suit, but are judicial admissions.22 In effect, they are not a means of evidence, but a waiver of all controversy, so far as the opponent may desire to take advantage of them, and therefore, a limitation of the issues.23 Thus, any reference that may be made to them, where the one party desires to avail himself or herself of the other’s pleading, is not a process of using evidence, but an invocation of the right to confine the issues and to insist on treating as established the facts admitted in the pleadings.24 [17] Pathways claims that based on the doctrine of judi cial admissions and Primeh ome Care’s amended complaint, October 1, 2006, should be considered the first date Prime home Care used “Compassionate Careh ospice.” Primeh ome Care counters by stating that “[j]udicial admissions must be unequivocal, deliberate, and clear, and not the product of mis take or inadvertence.”25 Primeh ome Care argues that its amended complaint makes no mention of its use of “Compassionate Careh ospice” prior to October 1, 2006. Primeh ome Care also argues that even if the statement in its amended complaint could be read in such a way, it would be inadvertent. We find that the trial court did not abuse its discretion by admitting exhibit 37, because Primeh ome Care’s admissions cannot be said to have been unequivocal, deliberate, or clear. Pathways’ final assignment of error is without merit. 2. A rguments on C ross -APPeAL (a) Primeh ome Care’sm otion for Default In its cross appeal, Primeh ome Care assigns that the dis trict court erred when it denied its motion to default. Prime 21 Doe v. Gunny’s Ltd. Partnership, 256 Neb. 653, 593 N.W.2d 284 (1999). 22 Lange Building & Farm Supply, Inc. v. Open Circle “R”, Inc., 210 Neb. 201, 313 N.W.2d 645 (1981). 23 Id. 24 Id. 25 Brief for appellee at 25, citing City of Ashland v. Ashland Salvage, 271 Neb. 362, 711 N.W.2d 861 (2006). PRImE hOmEC aRE v.P aThWaYSTOCO mPaSSION 93 Cite as 283 Neb. 77
home Care argues that § 21 2609 requires a limited liability corporation to have a properly designated registered agent. Because we found that the district court properly granted Prime home Care’s request for an injunction, we need not address this assignment of error. (b) Primeh ome Care Not Entitled to additionala ttorney Fees Next, Primeh ome Care argues that the district court com mitted an abuse of discretion by not granting the full amount of attorney fees. It alleges that by the end of the trial, its attorney fees totaled $55,700.50 and that the district court awarded only $27,500. In its order, the district court stated that it had reviewed the entire file herein and determines that the value of [Primeh ome Care’s] services including all cri teria specified in the Cannons [sic] of Ethics relating to attorney fees warrant the award of an attorney fee to [Primeh ome Care] for the benefit of [its] attorney in the amount of $27,500.00. [18 20]a s Primeh ome Care noted, we review the award of attorney fees for an abuse of discretion.26 To determine proper and reasonable fees, it is necessary for the court to consider the nature of the litigation, the time and labor required, the novelty and difficulty of the questions raised, the skill required to properly conduct the case, the responsibility assumed, the care and diligence exhibited, the result of the suit, the char acter and standing of the attorney, and the customary charges of the bar for similar services.27 In this respect, a judicial abuse of discretion exists when the reasons or rulings of a trial judge are clearly untenable, unfairly depriving a litigant of a substantial right and denying just results in matters submitted for disposition.28 The attorney invoices appear to support Pathways’ conten tion that some of the fees were incurred on unrelated matters. The district court appears to have considered the appropriate 26 See Schirber v. State, 254 Neb. 1002, 581 N.W.2d 873 (1998). 27 Id. 28 Id. 94 283NEBR aSkaREPORTS
factors in its award of attorney fees, and its finding is not clearly untenable. We therefore find that the district court did not abuse its discretion in the amount of attorney fees it awarded. This assignment of error is without merit. (c) Expert Witness Testimony Finally, Primeh ome Care argues that the trial court erred in admitting the expert testimony of a lexicographer. Primeh ome Care alleges that this testimony was not helpful to the fact finder and did not have sufficient foundation. The expert witness testi fied as to the descriptiveness of the name “Compassionate Care hospice.” Because we did not decide whether “Compassionate Careh ospice” was merely descriptive, but concentrated our analysis on whether it had acquired secondary meaning, we need not address this assignment of error. VI. CONCLUSION We find that the name “Compassionate Careh ospice” acquired secondary meaning as related to Primeh ome Care’s hospice services. We further find that the district court did not err in granting an injunction and attorney fees to Prime home Care. Finally, we find that Primeh ome Care’s assign ment of error on cross appeal regarding attorney fees is with out merit. A ffirmed. Wright, J., not participating in the decision. STaTE v.JI mENEz 95 Cite as 283 Neb. 95 stAte of nebrAskA, APPeLLee , v. timothy d. Jimenez , APPeLLAnt. 808 N.W.2d 352 Filed January 20, 2012. No. S 11 303. 1. Statutes: Appeal and Error. Statutory interpretation presents a question of law, for which an appellate court has an obligation to reach an independent conclusion irrespective of the determination made by the court below. 2. Extradition and Detainer: Words and Phrases.a detainer is a notification filed with the institution in which an individual is serving a sentence, advising the prisoner that he or she is wanted to face criminal charges pending in another jurisdiction.
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