What is the key issue in Bollinger v Costa Brava?

Whether selling wine as 'Spanish Champagne' was likely to deceive a substantial part of the public, amounting to passing off.

What did the court decide?

The court found a likelihood of deception. Ordinary buyers could be misled into thinking 'Spanish Champagne' was Champagne.

Why was goodwill important?

'Champagne' carried strong goodwill. Using a similar name risked diverting that reputation unfairly.

What test for deception was used?

Apply the view of the ordinary consumer; if a substantial portion is likely to be misled, passing off is made out.

What is the Pigeon Hole Theory?

A reminder that passing off protects distinct 'pigeon holes' of goodwill. Plaintiffs must fit into a recognized head of claim.

Bollinger v. Costa Brava Wine Co Ltd

Chancery Division 1960 High Court (ChD) [1960] 1 All ER 561 Passing Off • Deception ~6 min

AUTHOR_NAME: Gulzar Hashmi • LOCATION: India • PUBLISH_DATE: 2025-11-01

PRIMARY_KEYWORDS: Bollinger v Costa Brava, Spanish Champagne, passing off SECONDARY_KEYWORDS: deception test, goodwill, Pigeon Hole Theory, false description

Quick Summary

Champagne makers sued a seller of wine labelled “Spanish Champagne.” The court said ordinary buyers could think it was true Champagne. Because a substantial part of the public was likely to be misled, the claim for passing off succeeded. Strong goodwill in the name “Champagne” was protected.

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Issues

Was “Spanish Champagne” likely to deceive a substantial portion of the public?
Did the defendants’ conduct amount to passing off against producers of true Champagne?

Rules

Deception Test: Look through the eyes of the ordinary consumer. If many are likely to be misled, the conduct is deceptive.
Passing Off Elements: (1) Goodwill, (2) Misrepresentation, (3) Damage or likely damage.
Pigeon Hole Theory: Claim must fit a recognized head of passing off protecting distinct goodwill.

Facts (Timeline)

Timeline for the Spanish Champagne dispute

Producers: J. Bollinger and others made wine in the Champagne district (France) and sold in England & Wales; the name had high goodwill.

Use by Defendant: Costa Brava Wine Co. sold Spanish wine labelled “Spanish Champagne.”

Claim: Plaintiffs sought an injunction for false trade description/passing off.

Forum: High Court of Justice – Chancery Division.

Arguments

Plaintiffs (Champagne Houses)

“Spanish Champagne” rides on Champagne goodwill.
Ordinary buyers are likely to be misled.
Risk of damage to reputation and sales—passing off.

Defendants (Costa Brava Wine Co.)

Term was descriptive, not deceptive.
Consumers knew it was Spanish, not French Champagne.
No significant damage was likely.

Judgment

Held: The resemblance and wording were deceptive. Many ordinary people would likely think “Spanish Champagne” is Champagne. The plaintiffs proved their case and satisfied the recognized head (“pigeon hole”) of passing off. Relief was granted.

Ratio (Core Reason)

Where a name with established goodwill (Champagne) is used in a way that likely misleads ordinary consumers, courts will restrain the use as passing off, even if a qualifier like “Spanish” is added.

Why It Matters

Shows protection of geographical names with strong reputation.
Clarifies the consumer-centric test for deception.
Foundation for later extended passing off cases.

Key Takeaways

Substantial portion of public misled = passing off.
Goodwill in “Champagne” deserves protection.
Adding qualifiers (Spanish) may still deceive.

Mnemonic + 3-Step Hook

Mnemonic: C.H.A.M.P.

Consumer viewpoint
High goodwill in name
Added word can still mislead
Misrepresentation shown
Passing off made out

3-Step Hook

Spot the goodwill.
Test deception for ordinary buyers.
Check likely damage → injunction.

IRAC Outline

Issue	Is “Spanish Champagne” likely to deceive a substantial part of the public, amounting to passing off?
Rule	Passing off: goodwill, misrepresentation, damage. Use the ordinary consumer test for deception.
Application	Strong goodwill in “Champagne”; label close enough to mislead many buyers; risk of diverted trade and reputational harm.
Conclusion	Likelihood of deception shown; relief granted for passing off.

Glossary

Goodwill: The attractive force that brings in custom; the reputation attached to a name or brand.
Passing Off: Unfairly presenting one’s goods as those of another, causing public deception.
Pigeon Hole Theory: Idea that passing off protects defined categories of goodwill; claims must fit a recognized head.