TESTING SYSTEMS, INC. v. MAGNAFLUX CORP. U.S. Dist. Ct., E. Dist. of Pa., 251 F.Supp. 286 (1966). CASE BRIEF

TESTING SYSTEMS, INC. V. MAGNAFLUX CORP

U.S. Dist. Ct., E. Dist. of Pa., 251 F.Supp. 286 (1966)

NATURE OF THE CASE: Magnaflux (D) entered a motion to dismiss for failure to state a claim upon which relief can be granted on Testing's (P) asserted claim for trade libel or disparagement of property by circulation of statements disparaging P's product to P's current and prospective customers.

FACTS: P and D are engaged in the manufacture and sale of equipment, devices and systems, including chemical products, for use in the non-destructive testing of commercial and industrial materials. P alleges that both written and oral statements about P's product were circulated by D to current and prospective customers. P alleges that D published a false report to the effect that the United States Government had tested P's product, and found it to be only about 40% as effective as D's. Further, at a convention, D's agent said that P's 'stuff is no good,' and that 'the government is throwing them out.' P sued D in trade libel. D moved to dismiss because D did no more than make an unfavorable comparison of Ps product with its own; and P has failed to allege his damages with the required specificity.

ISSUE:

RULE OF LAW:

HOLDING AND DECISION:

LEGAL ANALYSIS:

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