A. L. B. Theatre Corp. v. Loew's Inc.

21 F.R.D. 584, 1957 U.S. Dist. LEXIS 4368, 1957 Trade Cas. (CCH) 68,911
CourtDistrict Court, N.D. Illinois
DecidedDecember 31, 1957
DocketNo. 56 C 727
StatusPublished
Cited by5 cases

This text of 21 F.R.D. 584 (A. L. B. Theatre Corp. v. Loew's Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. L. B. Theatre Corp. v. Loew's Inc., 21 F.R.D. 584, 1957 U.S. Dist. LEXIS 4368, 1957 Trade Cas. (CCH) 68,911 (N.D. Ill. 1957).

Opinion

JULIUS J. HOFFMAN, District, Judge.

The plaintiff, The A. L. B. Theatre Corporation, has moved for leave to file an amended and supplemental complaint, under Rule 15(a) of the Federal Rules of Civil Procedure, 28 U.S.C.A. This motion was presented more than a year and a half after the filing of the original complaint; consequently it was taken under advisement for careful consideration. Notwithstanding the substantial lapse of time prior to filing of the motion, however, leave to amend is granted.

Under Rule 15(a) a pleading to which a response has been filed may be amended only by leave of court or with the consent of the adverse party. The Rule expresses a mandate that “leave shall be freely given when justice so requires. * * * ” A motion to amend is addressed to the sound discretion of the court. Emich Motors Corp. v. General Motors Corp., 7 Cir., 1956, 229 F.2d 714; Arrow Petroleum Co. v. Johnston, 7 Cir., 1947, 162 F.2d 269, certiorari denied, 1947, 332 U.S. 817, 68 S.Ct. 158,. 92 L.Ed. 394. Therefore, the decisions cited in the briefs of the parties are advisory only, and the case must rest upon its particular facts. Armstrong Cork Co. v. Patterson-Sargent Co., D.C.N.D, Ohio 1950, 10 F.R.D. 534.

This action is predicated upon alleged antitrust violations by the defendants resulting in the inability of the plaintiff, operator of the Belmont motion picture' theater, to obtain an adequate film supply. On April 20, 1956, the plaintiff filed’ its original complaint seeking injunctive relief. Since that time the plaintiff has lost its lease on the Belmont Theater. Unprofitable operations caused by inability to obtain pictures from the defendant distributors allegedly resulted in the plaintiff’s eviction for failure to pay rent on January 31, 1957.

There are three significant differences1, between the original and amended complaints. The first-is that the new com[586]*586plaint seeks treble damages under the Clayton Act, 15 U.S.C.A. § 12 et seq. instead of injunctive relief as originally prayed.- The plaintiff notes that in view of its eviction from the Belmont Theater, an injunction against the defendants’ practices would no longer be of any benefit to it. The second difference lies in the allegations concerning the nature of the conspiracy with which the defendants are charged. The original complaint asserts that the defendants are engaged in a continuing conspiracy to monopolize and restrain commerce in the licensing of motion pictures in the City of Chicago. It describes the distribution system for films employed by the defendant distributors since about 1947. The amended complaint adds to the former conspiracy allegations assertions that the combination originated prior to 1935; it contains detailed descriptions of the practices of the defendants between 1935 and 1947 and avers that the findings and decrees of United States v. Paramount Pictures, Inc., D.C.S.D.N.Y., 70 F.Supp. 53, 85 F.Supp. 881, are prima facie evidence of the truth of the allegations concerning this earlier period. The third difference between the complaints is found in the charges concerning the rental prices paid by Balaban & Katz theaters to obtain films from the defendant distributors. These charges as made in the amended complaint are somewhat modified from those originally stated.

The principal argument advanced by the defendants in opposition to the plaintiff’s motion rests upon several cases holding that leave to amend a pleading will not be granted if the moving party has delayed in presenting its amendment without showing an adequate reason for the delay. See, e. g., Frank Adam Electric Co. v. Westinghouse Electric & Mfg. Co., 8 Cir., 1945, 146 F. 2d 165; Schick v. Finch, D.C.S.D.N.Y. 1944, 8 F.R.D. 639. The defendants maintain that the plaintiff could have offered its amendment shortly after its eviction on January 31, 1957; instead, the defendants note, the plaintiff waited about eight months before moving to file the new complaint.

With respect to a similar argument the court stated in Armstrong Cork Co. v. Patterson-Sargent Co., supra, D.C.N.D. Ohio 1950, 10 F.R.D. 534, 535 that

“Some of the above cases plaintiff contends stand for the proposition that delay itself will defeat the motion. The correct rule, however, may be' found in' Woldow v. Edgemoor Realty Co., D.C., 81 F.Supp. 800, 803, where it was held that: ‘The timeliness of motions to amend obviously depends upon the facts of each case and the legal pantomime in getting the case to issue.’
“Time of itself is not important. Other reasons must attach and in this case there is no reason that prevents a favorable ruling on this motion.”

The opinions of the Court of Appeals for the 7th Circuit have consistently employed as the criterion for granting or refusing leave to amend a pleading the test of whether the adverse party would be prejudiced by filing of the amendment. See, e. g. Goldenberg v. World Wide Shippers & Movers of Chicago, Inc., 7 Cir., 1956, 236 F.2d 198; Huse v. Consolidated Freightways, Inc., 7 Cir., 1955, 227 F.2d 425; Aiken v. Insull, 7 Cir., 1941, 122 F.2d 746, certiorari denied, 1941, 315 U.S. 806, 62 S.Ct. 638, 86 L.Ed. 1205. No case in this circuit has been found which holds that delay in itself warrants refusal of leave to amend. In the Goldenberg case, supra, the district court had permitted an amendment of the complaint two years after the filing of the complaint and two days before trial. The Court of Appeals upheld this ruling on the ground that the defendant was not prejudiced by the plaintiff’s delay in offering its amendment. In the Huse case, supra, prejudice to the adverse party was also employed as the criterion for judging whether an amendment should be accepted. In the Aiken [587]*587case, supra, the same criterion was used, and the district court was held’ in error for denying leave to amend seven years after the original complaint was'filed..

In the present case, it must be determined whether the defendants will be prejudiced if leave to amend be granted. In view of the change in the plaintiff’s circumstances, justice would seem to require .that leave be afforded if the defendants will not be prejudiced thereby.

The defendants do not claim that they will be prejudiced if leave is,granted. Rather, they rely upon the plaintiff’s delay as itself requiring denial of leave to amend. Two points made by the defendants, in their brief, however, bear upon the issue of prejudice. -

First, it is argued that several portions of the new complaint are legally insufficient. The defendants admit that such insufficiency is not a matter bearing upon the question of whether leave to amend should be granted. Peterson Steels, Inc., v. Seidmon, 7 Cir., 1951, 188 F.2d 193.

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21 F.R.D. 584, 1957 U.S. Dist. LEXIS 4368, 1957 Trade Cas. (CCH) 68,911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-l-b-theatre-corp-v-loews-inc-ilnd-1957.